raised its dividend by 12.5% Monday and said same-store sales rose at its domestic namesake stores in January.
The fast-food operator boosted its annual payout to 54 cents from 48 cents, bringing its annual outlay to about $61.6 million, or about 25% of Wendy's annual earnings run rate. Based on its recent price of $39.28, Wendy's stock is currently yielding about 1.4%.
Wendy's, which doubled its dividend in 2004, cited "confidence in the company's strong cash flow and strategic direction" in announcing the increase.
"The goal for our dividend payout ratio remains in the range of 18% to 22% of net income, with a yield of 1.1% to 1.2%, as we strive to continue delivering an excellent total return to our shareholders over the long term," the company said.
A 13.5-cent dividend will be paid March 4 to stock of record Feb. 17.
Wendy's also said same-store sales rose 0.5% from a year ago in January at domestic Wendy's stores, and predicted they would rise 1.4% to 1.6% from a year ago at its international restaurants.