Earnings fell a penny short of the 34-cent estimate in a survey of Wall Street analysts by First Call.The Dublin, Ohio-headquartered fast-food chain posted a third-quarter net income of $42.9 million, or 33 cents a share vs. $53 million, or 39 cents in the year-ago period.
Wendy's reported $485.2 million in revenue vs. $525.5 million last year. The shortfall came from a reduction in gains from franchising and fewer company-operated restaurants, the company said in a press release.
Retail sales were $388.9 million vs. $425.2 million, down primarily due to the closing of 60 underperforming, company-operated Wendy's restaurants during the first-half and the sale of more than 210 company units to franchisees over the past year. Wendy's International Inc. operates a mix of proprietary and franchised fast-food restaurants.
Wendy's repurchased 3.1 million in common shares for $65.6 million during the quarter, bringing the year-to-date stock repurchase program to about 8.7 million shares or $198 million. The company plans to repurchase up to $350 million in stock by year-end 1999.
Written By Steve Gelsi