On Oct. 26, Wendy's International (NYSE:WEN) released third-quarter earnings for the period ended Sept. 30, 2006.

  • Much has changed with the spin-off of Tim Horton's (NYSE:THI) and the sale of Baja Fresh.
  • Revenues grew 2.5% to $624 million, primarily driven by a same-store segment sales increase of 4.1% at Wendy's U.S. company-operated restaurants.
  • Management also said that same-store sales at franchised restaurants increased 3.9%, giving some credence to the idea that the turnaround may be starting.

(Figures in millions, except per-share data)

Income Statement Highlights

Avg. Est.

Q3 2006

Q3 2005

Change

Sales

$1,026*

$624

$609

2.5%

Net Profit**

--

$19

$20

(2.9%)

EPS

$0.64

$0.16

$0.17

(5.9%)

Diluted Shares

--

118

118

0.5%

*Avg. est. sales include revenue from discontinued operations.
**Revenue and net profit does not include income from discontinued operations.

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

Margin Checkup

Q3 2006

Q3 2005

Change*

Gross Margin

46.17%

45.46%

0.71

Operating Margin

3.11%

7.24%

(4.13)

Net Margin

3.11%

3.28%

(0.17)

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q3 2006

Q3 2005

Change

Cash + ST Invest.

$1,163

$264

340.7%

Accounts Rec.

$77

$158

(51.0%)

Inventory

$35

$64

(45.1%)



Liabilities

Q3 2006

Q3 2005

Change

Accounts Payable

$82

$150

(45.4%)

Long-Term Debt

$525

$556

(5.5%)



Learn the ways of the balance sheet.

Cash Flow Highlights
Did they leave the cash flow statement in Canada with Tim Horton's? It wasn't in the release.

Find out why Fools always follow the money.

Related Companies:

  • McDonald's (NYSE:MCD)
  • Burger King (NYSE:BKC)
  • Chipotle (NYSE:CMG)

Related Foolishness:

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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. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.