Wendy's Third-Quarter Earnings Up 30 Percent
Oct. 31, 1996
DUBLIN, Ohio (AP) _ Wendy's International Inc. on Thursday posted a 30 percent rise in third-quarter profits on higher sales that were driven by strong demand for its new spicy chicken sandwich and 99-cent chicken nugget.
Net income for the quarter ending Sept. 29 was $47 million, or 36 cents per share, compared with $36 million, or 30 cents per share, in the same period a year ago.
The results were below Wall Street expectations for the company to earn 38 cents per share, and Wendy's stock was off 87 1/2 cents in afternoon trading on the New York Stock Exchange.
Revenues increased 12 percent to $507 million from $451 million a year ago. Sales from company-owned and franchised restaurants totaled $1.5 billion.
Average domestic sales per company restaurant rose 9 percent, despite price discounts and food giveaways to market new products, said Gordon Teter, president, chief executive officer and chief operating officer.
Profits for the first nine months increased 26 percent to $116 million, or 90 cents per share, compared with $92 million, or 76 cents per share, in 1995. Revenues were $1.4 billion, compared with $1.3 billion.