Wendy’s tops 4Q profit forecasts


DUBLIN, Ohio (AP) — Wendy’s reported a 4.8 percent fourth- quarter sales increase at established locations in North America as the burger chain pursues a makeover of its restaurants.

Wendy’s believes that the appearance of its stores will improve perceptions of its food. Last year, the Dublin, Ohio, company renovated 22 percent of its North American restaurants.

It is also rolling out deals, including its heavily marketed “4 for $4” offer, to get people through the doors as price competition with other fast food chains heats up.

Wendy’s earned $85.9 million, or 31 cents per share. Excluding one-time items, it earned 12 cents per share. That was a penny more than Wall Street expected, according to Zacks Investment Research.

The chain posted revenue of $464.4 million in the period, missing Street forecasts. Analysts expected $469.2 million.

For 2015, Wendy’s said same-restaurant sales rose 3.3 percent. The company forecast those sales would grow 3 percent for 2016.

The company’s profit for the year was $161.1 million, or 49 cents per share. Revenue was reported as $1.87 billion.

It expects full-year earnings in the range of 35 cents to 37 cents per share.

Wendy’s shares have fallen almost 6 percent since the beginning of the year. The stock has decreased 8 percent in the last 12 months.

_____

This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on WEN at http://www.zacks.com/ap/WEN

_____

Keywords: Wendy’s, Earnings Report

RECOMMENDED FOR YOU