The Wendy’s Co (NASDAQ:WEN) posted quarterly loss but positive outlook for fourth quarter


Dallas, Texas 11/13/2013 (Financialstrend) – Restaurant chain operator The Wendy’s Co (NASDAQ:WEN) has reported its third quarter report for the period ended 30 September, 2013 with a net loss of $1.9 million or $0.005 loss per share as against a net loss of $26.1 million or $0.07 loss per share in the same period last year. However, year till date net income stood at $12.4 million or $0.03 earnings per share as compared to net loss of $19.3 million or $0.05 loss per share.

Revenues grew fractionally by 0.7% YoY to $640.8 million attributed by higher same-store sales along with higher technical assistance fees and rise in rental income arising from to franchisees by disposing of restaurants. Same-store sales on YoY basis in North America Company-operated restaurants improved to 3.2% from 2.7% and Franchisees reported 3.1% from 2.9%.

Adjusted EBITDA for Q3FY13 stood at $98.7 million, up by 16.9% year over year (YoY) and margins stood at 15.4% against 13.3%. Gross margins also improved 200 basis points to 26.8% due a 1.9% YoY decline in the cost of sales. Although, operating margins contracted to 4.2% from 4.9% in same period last year mainly due to $22.3 million pretax net charge in respect to facilities actions coupled with an impairment charge of $5.3 million.

For the fiscal ending December 2013, the company has provided a guidance of its Adjusted EBITDA to be around $365 million while its Non-GAAP earnings per share is anticipated to be around $0.25.additionally, the average same-store sales growth is expected to be in the zone of 2.0% in North America company operated restaurants while year-to-date growth will be around 1.5%.

Emil Brolick, the hamburger maker’s President and Chief Executive Officer commented on the results, “We are contemporizing our consumer touch points and transforming our brand, with bold restaurant designs, new packaging and innovative menu introductions such as our Pretzel Bacon Cheeseburger.”