Wendy’s revised earnings show strong fourth quarter
New York, NY, United States (4E) – Wendy’s Co. revised its earnings for the fiscal fourth quarter after it lowering its estimate for a charge related to certain discontinued breakfast operations and reducing its depreciation and amortization.
Wendy’s reported earnings of $26.4mn, which is up from $4mn recorded in the same period a year ago.
Last month, the fast-food hamburger chain reported preliminary profit results showing that it increased as its growth measures boosted revenue and margins despite the decline in same-store sales.
Earnings per share jumped by a penny, at seven cents, while adjusted earnings per share also climbed a penny at nine cents. Analysts predicted a gain of eight cents in per-share earnings.
Revenue inched up 2 per cent to $629.9mn, while analysts had expected it to reach $630mn. Wendy’s reaffirmed its earnings guidance for this year of between 18 and 20 cents a share, while analysts had predicted 18 cents of per-share earnings.
Wendy’s slashed $4mn in its pretax charge estimate tied to discontinued breakfast operations at certain stores. It also cut by $2mn its pretax depreciation and amortization.
Rival fast-food chain McDonald’s reported last month a quarterly revenue and earnings that beat Wall Street estimates but warned that first quarter sales may fall.