DUBLIN: Wendy’s new value menu and focus on premium burgers helped its fiscal fourth-quarter net income top Wall Street expectations, the hamburger chain said Thursday.
Results showed Wendy’s push to position itself in terms of fast-food quality seems to have gained some traction. Wendy’s has also begun revamping restaurants with a modern look with casual seating areas more reminiscent of fast-casual chains such as Panera Bread Co.
Wendy’s net income jumped to $22.4 million, or 6 cents per share, for the three months ended Dec. 30. That’s up sharply from $4 million, or 1 cent per share, a year earlier. The current quarter’s results included a tax benefit, lower interest expense and a sharp rise in investment income. Removing impairment charges, facility relocation costs and other items, adjusted earnings were 8 cents per share.
Revenue increased 2 percent to $629.9 million from $615 million.
Analysts surveyed by research firm FactSet expected adjusted earnings of 4 cents per share on revenue of $637 million.
Wendy’s said revenue at company-run North American restaurants open at least 15 months and remodeled restaurants reopened at least three months in a row slipped 0.2 percent. The figure fell 0.6 percent for franchised restaurants. The performances are compared with the prior-year period, which included results from the introduction of its Dave’s Hot ’N Juicy cheeseburgers.
This month, Wendy’s announced that it was switching to a “Right Price Right Size” value menu that includes items ranging from 99 cents to $1.99.