Wendy’s Loses $4M in Fourth Quarter
DUBLIN, Ohio (AP) _ Wendy’s International Inc. said Thursday it lost $4 million in the fourth quarter because of expenses tied to closing restaurants and pulling out salad bars.
The fast-food chain’s loss for the three months ended Dec. 28 amounted to 3 cents a diluted share. In the comparable period in 1996, Wendy’s earned $40.2 million, or 30 cents per diluted share.
Fourth-quarter revenues rose 5 percent to $512.7 million from $488.7 million a year earlier.
Wendy’s said it took a $72.7 million pretax restructuring charge in the latest quarter. Without the charge, fourth-quarter earnings would have been $45.9 million, or 34 cents per diluted share.
The results matched analysts’ expectations, according to a survey by First Call Corp. Wendy’s shares edged up 6 1/4 cents to $21.31 1/4 on the New York Stock Exchange.
For all of 1997, net income fell to $130.5 million, or 97 cents a diluted share, from $155.9 million, or $1.19 a diluted share, in 1996 Full-year revenues rose 7.4 percent to a record $2 billion.
A total of 228 Wendy’s company-owned stores were sold to new or existing franchisees last year, which generated a pretax gain of $81 million compared to $67 million in 1996.
The company, based in this Columbus suburb, plans to open another 575 Wendy’s and Tim Hortons _ which specialize in coffee and baked goods _ this year and 675 in 1999.