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.
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