Wendy’s Earnings: Loss Made Worse, Falls Short of Estimates
Wendy’s Company (The) (NYSE:WEN) reported its results for the third quarter. Wendy’s Arby’s Group is a quick service restaurant company, which is comprised of the Wendy’s and Arby’s brands.
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Wendy’s Company (The) Earnings Cheat Sheet
Results: Loss widened to $26.2 million (7 cents per diluted share) from $4 million (loss of one cent per share) in the same quarter a year earlier.
Revenue: Rose 4.1% to $636.3 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Wendy’s Company (The) fell short of the mean analyst estimate of 5 cents per share. It beat the average revenue estimate of $609.1 million.
Quoting Management: “Our top-line momentum continues as we generated our sixth consecutive quarter of same-store sales growth, including a two-year same-store sales increase of 4.5 percent, in the third quarter,” President and Chief Executive Officer Emil Brolick said. “Our focus on operational levers such as menu innovation and improved marketing are reinvigorating the brand.”We are excited about our progress with Image Activation, which is an important element of our ‘Recipe to Win’ growth strategy,” Brolick said. “Average annualized sales volumes for the restaurants we reimaged during 2011 have increased more than 25 percent, and we remain on track to reimage 50 percent of our Company-operated restaurants by the end of 2015.”
The company fell short of estimates last quarter after being in line with expectations the quarter before with net income of 5 cents.
The company’s revenue has now risen for two quarters in a row. In the second quarter, revenue increased 3.8% to $645.9 million from the year-earlier quarter.
Looking Forward: The average estimate for the fourth quarter remains unchanged at 4 cents a share. For the fiscal year, the average estimate has been unchanged at 15 cents a share.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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