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Wendy's sees higher net income, but profit margins fall as ingredients get expensive
ATLANTA (AP) ' Wendy's says its net income climbed slightly in the second quarter on improving sales in its first earnings period since selling the struggling Arby's chain.
Revenue excluding Arby's climbed 2 percent to $622 million, helped partly by higher prices but also by customers visiting more and buying more when they did.
Net income rose 5 percent to $11.3 million.
Like other restaurants, Wendy's Co. is grappling with higher costs for raw ingredients, which caused the profit margin at company-owned restaurants to plummet to 13.9 percent from 16.4 percent. The company also spent more on advertising.
Revenue at company-owned stores open at least a year rose 2.3 percent, the chain's biggest increase since 2008.
Wendy's last month sold Arby's to a private-equity firm after about three years as a combined company.