Shares of Wendy’s (WEN) climbed on Wednesday after the fast food retailer reaffirmed its sales guidance for 2015. Unlike struggling competitor McDonald’s (MCD), Wendy’s expressed confidence in its sales outlook, expecting same-restaurant sales to grow 2.5% to 3% at company-operated locations this year. It also raised a long-term earnings growth target, now expecting earnings-per-share to grow by more than 20% beginning in 2018. Plus, Wendy’s announced plans to buy back up to $1.4 billion in shares by the end of 2016. Wendy’s sales appear to be juicier than McDonald’s because of its new premium burgers and chicken sandwiches, a category it appears to be winning against its competitor. However, Wendy’s first-quarter sales in North America were ‘slightly below expectations,’ according to executives, as the company focused on marketing those premium sandwich options. Now, Wendy’s may shift its marketing focus to value-oriented products.
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