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Wendy's Q4 Mixed; Maintains 2014 Outlook

By Associated Press - Feb 27, 2014 at 12:32PM

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In North America, sales at company-run restaurants open at least a year rose 1.9%.

DUBLIN, Ohio (AP) -- Wendy's fourth-quarter net income rose 25%, bolstered by a drop in expenses.

While earnings topped Wall Street expectations, sales were under some pressure and revenue fell short.

For the three months ended Dec. 29, the restaurant operator earned $33.1 million, or $0.08 per share. That's up from $26.4 million, or $0.07 per share, a year ago.

Stripping out impairment charges and other items, earnings were $0.11 per share, or $0.02 better than analyst projections, according to a poll by FactSet.

Costs and expenses declined to $563.5 million from $597.6 million. Interest expense dropped to $13.5 million from $20.8 million.

Revenue fell 6% to $592.4 million from $629.9 million, short of Wall Street's forecast of $593.4 million.

Full-year net income grew more than sixfold to $45.5 million, or $0.11 per share, from $7.1 million, or $0.02 per share, in the previous year.

Adjusted earnings were $0.30 per share.

Annual revenue dipped 1% to $2.49 billion from $2.51 billion.

In North America, sales at company-run restaurants open at least a year rose 1.9%.

Wendy's Co. reaffirmed its forecast for 2014 adjusted earnings between $0.34 and $0.36 per share. Analysts expect earnings of $0.33 per share.

The company also maintained its long-term outlook for a mid-teens increase in adjusted earnings per share.


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