UPDATE 3-Wendy's/Arby's profit matches view, shares up
* Q3 adjusted EPS 6 cents matches analysts' view
* Total revenue $903.2 mln vs Street view of $916.5 mln
* Shares up 3.9 percent (Adds analyst comment, details, byline; updates stock)
LOS ANGELES, Nov 5 (Reuters) - Wendy's/Arby's Group Inc (WEN.N), the No. 3 U.S. fast-food chain, reported adjusted quarterly profit in line with analysts' expectations, and its shares rose 3.9 percent.
"We benefited from lower commodity costs in the third quarter and expect that trend to continue in the fourth quarter," Chief Executive Roland Smith said in a statement.
The company, formed after Arby's owner Triarc bought Wendy's International Inc for just over $2 billion in September, reported third-quarter net income of $14.7 million, or 3 cents a share. Figures for the year-earlier quarter were not comparable due to the timing of the merger.
Excluding after-tax special charges, it earned 6 cents a share, matching analysts' average forecast, according to Thomson Reuters I/B/E/S.
Consolidated revenue from the 10,000-restaurant chain was $903.2 million, falling short of the $916.5 million analysts had expected.
Lower food prices and other cost savings helped boost earnings, even as closely watched sales at established Wendy's and Arby's restaurants fell more than analysts had expected.
Investors remain cautious about the company, which is working to turn around both the Wendy's and Arby's brands at a time when discounting is rampant and unemployment is rising.
Bernstein analyst Sara Senatore said Arby's "continues to be a drag on the business and there are no signs yet of any real change in trend."
RBC Capital Markets analyst Larry Miller added that "October trends remain weak with Wendy's company stores still negative and Arby's trends weakening further."
SAME-RESTAURANT SALES FALL
System-wide sales at established Wendy's restaurants in North America fell 0.1 percent, dampened by the removal of breakfast from about 300 restaurants.
Smith said sales of Wendy's Bacon Deluxe Cheeseburger have been encouraging.
Arby's North America system-wide same-store sales fell 9 percent.
The chain launched an "everyday value strategy" in October. It traditionally has sold its sandwiches at higher prices than other fast-food chains.
McDonald's Corp's (MCD.N) rules the "value" category with its Dollar Menu. Burger King Holdings Inc (BKC.N), the second-biggest publicly held U.S. fast-food chain after McDonald's, recently expanded its value menu with the U.S. introduction of a $1 double cheeseburger.
Burger King's system-wide same-restaurant sales fell 4.6 percent in the United States and Canada for the September quarter. McDonald's third-quarter U.S. same-store sales rose 2.5 percent, but the company cautioned that such sales could be "flat to slightly negative" in October.
Wendy's/Arby's shares were up 16 cents at $4.32 in early afternoon trading on the New York Stock Exchange. (Reporting by Lisa Baertlein; editing by John Wallace and Gerald E. McCormick)
