Wendy’s and RCII Climb Trading Radars After Earnings

The Wendy’s Company (NYSE:WEN) reported its results for the fourth quarter. Net income for The Wendy’s Company fell to $4.3 million (4 cents per share) vs. $6.1 million (3 cents per share) a year earlier. Revenue rose 5.6% to $615 million from the year earlier quarter. WEN fell in line with the mean analyst estimate of 4 cents per share. Analysts were expecting revenue of $613.3 million.

Emil Brolick, President and Chief Executive Officer said, “In the fourth quarter, we produced our strongest same-store sales growth since the second quarter of 2004 primarily due to the introduction of our premium Dave’s Hot ‘N Juicy cheeseburger line, which received a positive response from consumers. For 2011, we also generated positive transactions for the first year since 2002. Adjusted EBITDA1 was $331.1 million for fiscal 2011, and income from continuing operations for the year was $17.9 million. “We expect another positive year in 2012, with same-store sales growth in a range of two to three percent,” Brolick said. “We estimate 2012 Adjusted EBITDA will be in a range of $335 million to $345 million.”

Competitors to Watch: McDonald’s Corporation (NYSE:MCD), Good Times Restaurants Inc. (NASDAQ:GTIMD), Carrols Restaurant Group, Inc. (NASDAQ:TAST), Tim Hortons Inc. (NYSE:THI), Yum! Brands, Inc. (NYSE:YUM), Jack in the Box Inc. (NASDAQ:JACK), Panera Bread Company (NASDAQ:PNRA), Chipotle (NYSE:CMG), Starbucks (NASDAQ:SBUX) and Nathan’s Famous, Inc. (NASDAQ:NATH).

RCII (NASDAQ:RCII) reported its results for the fourth quarter. Net income for the rental and leasing services company rose to $49.3 million (83 cents per share) vs. $31.9 million (49 cents per share) in the same quarter a year earlier. This marks a rise of 54.8% from the year earlier quarter. Revenue rose 8.9% to $737.5 million from the year earlier quarter. RCII reported adjusted net income of 85 cents per share. By that measure, the company beat the mean estimate of 82 cents per share. Analysts were expecting revenue of $741.1 million.

“We are generally pleased with our earnings for the fourth quarter and our overall results for the fiscal year 2011,” said Mark E. Speese, the Company’s Chairman and Chief Executive Officer. “While our top line was somewhat tempered a bit due to our core rent-to-own customers remaining focused on value, our customer demand remained strong.”

Competitors to Watch: Aaron’s, Inc. (NYSE:AAN), McGrath RentCorp (NASDAQ:MGRC), Best Buy Co., Inc. (NYSE:BBY), GameStop Corp. (NYSE:GME), RadioShack Corporation (NYSE:RSH), CONN’S, Inc. (NASDAQ:CONN), hhgregg, Inc. (NYSE:HGG), and Electro Rent Corporation (NASDAQ:ELRC).

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com