Wendy's returns to profitability in quarter

by FoodBusinessNews.net Staff
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DUBLIN, OHIO — Wendy’s International, Inc. posted net income of $29,233,000 in the second quarter ended July 1, which compared with a loss of $29,115,000 during the same quarter of the previous year.

Total revenues for the quarter were $632,912,000, nearly flat compared with revenues of $634,113,000 during the same quarter of 2006.

"We are revitalizing the Wendy’s brand with innovative product introductions, a new advertising campaign and improving operations," said Kerrii Anderson, chief executive officer and president. "Our U.S. company-operated restaurant EBITDA margin improvement was the result of strategic initiatives we began implementing this year — an effective menu management strategy and more efficient operations. We believe that price increases, which are impacting transactions in the short term, will position us to produce profit expansion in the longer term. We have good momentum in the business as we focus on improving profits in every restaurant in the Wendy’s system."

During the quarter, average same-store sales were up 0.7% for U.S. company-operated restaurants and 0.4% for U.S. franchise restaurants, leading to 13 consecutive months of positive same-store sales. Additionally, 39 new company-owned and franchised restaurants opened during the second quarter.

Wendy’s also introduced several new menu items during the quarter: steakhouse double-melt cheeseburgers, the Frosty float, the 99c buffalo crispy chicken sandwich and the $1.99 triple stack cheeseburger. The company also announced a Folgers coffee offering in May.

For the six months ended June 1, Wendy’s posted net income of $43,920,000, up 99% compared with a net income of $22,117,000 during the same period of the previous year. Total revenues were $1,223,076,000, up 1% compared with revenues of $1,212,791,000 during the same period of the previous year.

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