Wendy's 2Q net income advances
Aug. 11, 2011
by Bryan Salvage
ATLANTA – The Wendy’s Company announced for the second quarter ended July 3, net income from continuing operations was $11.4 million, or $0.03 per share. Second quarter 2010 net income from continuing operations was $5.4 million, or $0.02 per share. Consolidated revenues were $622.5 million, and increased $15.1 million as compared to second quarter 2010 revenues of $607.4 million.
Year-to-date net income from continuing operations was $11.1 million, as compared to 2010 year-to-date net income of $12.8 million. Consolidated revenues were $1.2 billion and were unchanged as compared to 2010 year-to-date revenues.
“We were pleased to produce a 2.3 percent same-store sales increase at Wendy’s North America company-operated restaurants in the second quarter of 2011, which represents the brand’s best sales performance since the fourth quarter of 2008,” said Roland Smith, president and CEO of The Wendy’s Company. “We anticipate strong same-store sales in the third and fourth quarters driven by innovative products and the launch of our new cheeseburger line.”
“Having completed the sale of Arby’s Restaurant Group Inc. on July 4, our sole focus will be on Wendy’s and delivering 10 percent to 15 percent average annual EBITDA growth in 2012 and beyond,” he added.
In other news, Wendy’s is preparing for the national launch of its new cheeseburger line, ‘Dave’s Hot ‘N Juicy’, in October. “We believe this new cheeseburger line will allow us to build upon our quality leadership position within the hamburger segment and continue to grow sales,” Smith said.
Smith added he is encouraged by customer acceptance of Wendy’s new breakfast menu. “We are continuing the rollout of our new menu as we make progress on our goal of serving the new breakfast menu in approximately 1,000 restaurants by year-end,” he said.
During the second quarter 2011, Wendy’s expanded into Russia opening two restaurants. Both openings are part of the development agreement announced last August with franchisee Wenrus Restaurant Group Limited, which includes developing 180 restaurants in the Russian Federation over the next 10 years.
The company currently operates 333 franchise restaurants outside of North America and has more than 700 future restaurant commitments, totaling more than 1,000 restaurants. The company is actively pursuing opportunities in China, Brazil and other markets throughout the world.