On Feb. 3, Wendy's (NYSE:WEN) released fourth-quarter and year-end results for the period ended Dec. 31. Here are the quick and dirty details for the quarter.

  • Reported sales fell 1.1%. Restaurant sales grew 2.2% to $526.7 million, but franchise revenues declined 20%.
  • In the fourth quarter, the company reported that same-store sales grew 3.1% for company-owned U.S. restaurants and 2.7% for franchised U.S. locations.
  • Total reported diluted earnings fell 88% but included $0.06 from discontinued operations like Tim Horton's (NYSE:THI), which was spun off.
  • As part of its restructuring moves, Wendy's repurchased more than $1 billion in stock during 2006.

(Figures in thousands, except per-share data)

Income Statement Highlights

Q4 2006

Q4 2005

Change

Sales

$596,378

$602,867

(1.1%)

Net Profit

$3,027

$29,963

(89.9%)

EPS

$0.03

$0.25

(88.0%)

Diluted Shares

108,795

118,398

(8.1%)



Get back to basics with a look at the income statement.

Margin Checkup

Q4 2006

Q4 2005

Change*

Gross Margin**

37.2%

36.4%

0.8

Operating Margin

0.3%

8.6%

(8.3)

Net Margin

0.5%

5.0%

(4.5)

*Expressed in percentage points.
**Cost of sales/Restaurant sales.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q4 2006

Q4 2005

Change

Cash + ST Invest.

$457,614

$230,560

98.5%

Accounts Rec.

$84,841

$62,190

36.4%

Inventory

$30,252

$29,798

1.5%



Liabilities

Q4 2006

Q4 2005

Change

Accounts Payable

$93,465

$92,340

1.2%

Long-Term Debt

$530,426

$521,800

1.7%



Learn the ways of the balance sheet.

Cash Flow Highlights

Fools will have to wait until Wendy's files its 10-K for juicy cash flow details.

Find out why Fools always follow the money.

Comparable companies:

  • McDonald's (NYSE:MCD)
  • Sonic (NASDAQ:SONC)
  • Burger King (NYSE:BKC)
  • Jack in the Box (NYSE:JBX)

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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.

Fool contributor Ryan Fuhrmann has no financial interest in any company mentioned. Feel free to email him with feedback or to discuss any companies mentioned further. The Fool has an ironclad disclosure policy.