Wendy’s Earnings Cheat Sheet: After Three Quarters of Losses, Back to Profitability

The Wendy’s Company (NASDAQ:WEN) reported a profit boost in the second quarter. Wendy’s Arby’s Group Inc. is a quick service restaurant company, which is comprised of the Wendy’s and Arby’s brands, two companies distinguished by traditions of quality food and service.

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The Wendy’s Company Earnings Cheat Sheet for the Second Quarter

Results: Net income for The Wendy’s Company rose to $11.3 million (3 cents per share) vs. $10.7 million (3 cents per share) in the same quarter a year earlier. This marks a rise of 4.9% from the year earlier quarter.

Revenue: Rose 2.4% to $622.5 million from the year earlier quarter.

Actual vs. Wall St. Expectations: WEN fell short of the mean analyst estimate of 5 cents per share. It fell short of the average revenue estimate of $758.2 million.

Quoting Management: Roland Smith, President and Chief Executive Officer of The Wendy’s Company said, “We were pleased to produce a 2.3% same-store sales increase at Wendy’s North America Company-operated restaurants in the second quarter of 2011, which represents the brand’s best sales performance since the fourth quarter of 2008. Importantly, we generated positive transactions during the quarter, which we believe reflect the cumulative benefit of our ‘Real’ brand positioning and significant core menu improvements.”

Key Stats:

WEN’s profit in the latest quarter follows losses in the three previous quarters. The company reported a net loss of $1.4 million in the first quarter, a loss of $10.8 million in the fourth quarter of the last fiscal year and a loss of $909,000 in the third of the last fiscal year.

The company has now fallen short of estimates in the last two quarters. In the first quarter, it missed expectations by one cent with net income of one cent versus a mean estimate of net income of 2 cents per share.

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).

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(Source: Xignite Financials)