reported record fourth-quarter profit Friday that beat analysts' estimates on a 21% surge in revenue.
The company earned $64.7 million, or 56 cents a share, in the quarter ended Dec. 28, up from $50.7 million, or 44 cents a share, a year earlier. Analysts were forecasting earnings of 54 cents a share. The company said earnings were increased 5 cents a share because of improvements in Canadian exchange rates.
"We delivered our best fourth quarter in the history of the company as both Wendy's and Tim Hortons produced excellent sales. We achieved our new store opening plans, and our employees continued to effectively control costs," the company said in a statement.
Total revenue in the quarter was $862.4 million, up from the previous year's $711.7 million.
Same-store sales at Wendy's U.S. company restaurants rose 8.6% compared with a 1% rise in the same period a year earlier. And Wendy's U.S. franchise comps were up 7.6% on top of a 3% increase a year ago. Comps at the company's Baja Fresh restaurants, however, fell 5.3% on top a 0.1% decline in the year-earlier period.
Wendy's said beef prices increased 29.3% in the quarter, and said that accounted for why its domestic operating margin declined 20 basis points to 14.7% for the quarter.
The company said it opened 282 new restaurants in the quarter.
Shares of Dublin, Ohio-based Wendy's were down 24 cents, or 0.6%, at $39.46 in premarket trading.