This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

The Wendy’s Company Reports 2012 Second-Quarter Results

Stocks in this article: WEN

The Wendy’s Company (NASDAQ: WEN) today reported results for the second quarter ended July 1, 2012.

Highlights from the second quarter of 2012 included the following:

  • Consolidated revenues were $645.9 million, an increase of 3.8 percent compared to $622.5 million in the second quarter of 2011.
  • Wendy’s ® North America Company-operated restaurants generated a same-store sales increase of 3.2 percent. This is the fifth consecutive quarter of positive same-store sales. Franchise same-store sales in North America also increased 3.2 percent during the quarter.
  • Company-operated restaurant margin was 14.1 percent, a 20 basis-point improvement compared to 13.9 percent in the second quarter of 2011. Same-store sales growth and a favorable product mix drove the margin improvement. Offsetting this positive impact were higher labor costs as the Company invested in its “My Wendy’s” customer service initiative to improve the consumer experience, as well as higher commodity and paper costs.
  • Adjusted EBITDA from continuing operations was $89.1 million, compared to $89.4 million in the second quarter of 2011. See “Disclosure Regarding Non-GAAP Financial Measures” below for a reconciliation of the non-GAAP measures (i.e., Adjusted EBITDA from continuing operations and Adjusted Earnings Per Share from continuing operations) included herein.
  • Primarily as a result of a $25.2 million pretax charge from the early extinguishment of debt, the Company reported a net loss from continuing operations of $5.5 million. This compares to net income from continuing operations of $11.4 million in the second quarter of 2011.
  • Adjusted Earnings Per Share from continuing operations were $0.05 for both the second quarter of 2012 and the second quarter of 2011.
  • The Company reported a loss per share from continuing operations of $0.01, compared to earnings per share from continuing operations of $0.03 in the second quarter of 2011.

The Company is reaffirming its 2012 outlook for Adjusted EBITDA from continuing operations in a range of $320 million to $335 million. The outlook for Adjusted EBITDA from continuing operations excludes items such as debt extinguishment costs, as well as relocation costs and other transition expenses from the consolidation of the Atlanta restaurant support center with the Dublin, Ohio restaurant support center, in addition to impairment and costs related to the closure of underperforming restaurants. The Company continues to target an average annual Adjusted EBITDA growth rate in the high-single-digit to low-double-digit range beginning in 2013.

1 of 7

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs