Wendy's 3Q revenues increase $10.7 million
Nov. 9, 2011
by Bryan Salvage
DUBLIN, Ohio – The Wendy’s Company reported for its third quarter ended Oct. 2, consolidated revenues were $611.4 million, an increase of $10.7 million compared to third quarter 2010 revenues of $600.7 million. Adjusted EBITDA was $87.0 million, an increase of 6.5 percent compared to third quarter 2010 adjusted EBITDA of $81.8 million, which excludes special items of $7.9 million.
Income from continuing operations was $2.5 million, or $0.01 per share, including after-tax special items of $15.0 million for transaction-related costs, or $0.04 per share. Third quarter 2010 loss from continuing operations was $0.8 million, or $0.00 per share, including after-tax special items of $17.9 million, or $0.04 per share.
“We generated transaction growth, which contributed to a 1.8 percent same-store sales increase at Wendy’s North America Company-operated restaurants, during the third quarter of 2011,” said Emil Brolick, president and chief executive officer. “Wendy’s remains on track to produce positive transactions for the year.”
Last October’s launch of Dave’s Hot ‘N Juicy cheeseburger product line has exceeded expectations and will re-establish Wendy’s leadership in the premium-quality hamburger category, he predicted.
Wendy’s strategy during the third quarter was to reinforce its brand positioning with the introduction of two new products, including the Monterey Ranch Crispy Chicken sandwich on its My 99¢ Everyday Value Menu in August.
“Due to the success of our breakthrough launch, we will allocate incremental promotional support to Dave’s Hot ‘N Juicy cheeseburger product line, along with advertising for the Asiago Ranch Chicken Club in November,” Brolick said.
In late November, Wendy’s will introduce its new ‘W’ cheeseburger product line as a mid-tier sandwich priced below its premium-quality cheeseburger. “This will enable us to offer consumers three hamburger product lines in our menu portfolio – signature, mid-tier and price/value. Each of these product lines has its own unique positioning for consumers looking for variety and price/value,” Brolick concluded.