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

Image Activation Restaurants Continue to Generate Strong Sales; Expansion Accelerating

Wendy’s remains on track to reimage approximately 50 existing Company-operated restaurants in 2012, with plans for significantly more Company and franchise reimages in 2013 and beyond. This is in addition to the 10 Company-operated restaurants the Company successfully reimaged in 2011. The Company also plans to open at least 20 new restaurants during 2012, with at least 17 built in the new “Image Activation” design.

Wendy’s first franchised Image Activation restaurant opened in July 2012 and is generating strong sales in line with the Company-operated Image Activation restaurants. The Company expects franchisee participation in the Image Activation program to accelerate beginning in 2013.

President and Chief Executive Officer Emil Brolick said: “We are building a solid foundation for the reimaging of our system, which is very exciting for our customers, operators and franchisees. Image Activation is one of the most important elements of Wendy’s ‘Recipe to Win’ growth strategy. It elevates the customer experience with innovative exterior and interior designs for new units and reimages.

“Based on the strong sales increases we have generated at our reimaged restaurants, we are planning to accelerate Image Activation in 2013 and are targeting 50 percent of Company-operated restaurants for reimaging by the end of 2015,” Brolick said.

New Products and Marketing Driving Sales Momentum

“We are beginning to build positive momentum, as we produced our fifth consecutive quarter of positive same-store sales, including a two-year same-store sales increase of 5.5 percent in the second quarter,” Brolick said.

“We promoted products consistent with our ‘A Cut Above’ brand positioning, including our Spicy Guacamole Chicken Club sandwich, Signature Sides and Berry Almond Chicken Salad,” Brolick added. “We employed an integrated marketing approach, featuring our new advertising campaign that is generating positive consumer-approval scores. We also utilized a successful direct mail campaign as an additional media layer, which drove trial of core products and helped generate a favorable product mix. In addition, we continue to build our digital and social media platforms, as evidenced by the fact that Nation’s Restaurant News ® recently ranked Wendy’s No. 2 overall in its Restaurant Social Media Index.”

Domestic and International Restaurant Portfolio Development

The Wendy’s system opened 13 new restaurants and closed 47 restaurants during the second quarter. The Company conducted a comprehensive review of its restaurant portfolio during the second quarter. The Company closed 19 underperforming restaurants during the second quarter, and franchisees closed 28 restaurants.

2 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 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

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