Wendy’s Fourth Quarter Lowered by 30%
Wendy’s Co’s (NYSE:WEN) results for the fourth quarter were lower by 30% owing to rising commodity costs and marketing expenses that negated better same-store sales and higher than expected growth in revenues. The company also booked charges on its Arby’s transaction and asset impairment.
Profit was reported at $4.3 million compared to $6.1 million in the previous year on revenues that jumped 5.6 per cent to $615 million. Earnings per share were a penny in both the current and previous year quarters – however the outstanding shares were lower in the current quarter.
Trends in store sales were positive, with North American same stores rising 4.4% and company owned restaurants in North America clocking 5.1% growth and better margins. The October launch of its Dave’s Hot ‘N Juicy cheeseburger line was a hit and its Asiago Ranch Chicken Club continued to show strength.
The management hopes to trigger long term growth by introducing breakfast and more new menu items such as its Redhead Roasters coffee blend. Management also intends to expand internationally.
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