NEW YORK — Wendy’s reported a quarterly profit above Wall Street expectations and said it’s selling 425 of its restaurants to franchisees, a move that’s expected to help boost its profit margins.

Fast-food companies often own only a small percentage of their restaurants, giving them a more stable stream of income that’s tilted toward royalty fees and rent, rather than sales at restaurants.

CEO Emil Brolick said the sale also will help expand adoption of the company’s new restaurant designs. Wendy’s plans to sell to “well-capitalized” franchisees willing to pay for the remodeling.

By upgrading its stores and offering more premium sandwiches, Wendy’s is hoping to align itself more with places such as Panera Bread or Chipotle, which can charge higher prices for their food.