WENDY'S PROFITS UP 30 PERCENT IN FIRST QUARTER
WENDY'S PROFITS UP 30 PERCENT IN FIRST QUARTER DUBLIN, Ohio, April 29 /PRNewswire/ -- Wendy's International, Inc.
(NYSE: WEN) reported a 30 percent increase in profits as the company posted record systemwide sales and revenues in the first quarter ended March 29, 1992.
Net income for the first quarter was $7.7 million, or $.08 per share, versus $5.9 million, or $.06 per share a year ago. These were the highest first quarter earnings recorded in six years. Revenues for the quarter increased 13.2 percent to a first quarter record of $279 million from $246 million a year earlier. The board of directors approved a quarterly dividend of $.06 per share, payable May 22 to shareholders of record May 11. "These results clearly demonstrate that Wendy's has successfully maintained momentum in an uncertain economy," said James W. Near, Wendy's chairman and chief executive officer. "We have stayed focused on our key business strategies of improving restaurant operations, creating consistent marketing, fostering a performance-driven culture, and aggressively building restaurants." Company restaurant operating margins improved to 11.7 percent, from 10.7 percent in the first quarter last year. Average net sales per domestic company restaurant rose 5 percent over 1991 to $216,400, making it the 13th consecutive quarter of year-to-year sales gains. Near noted that all-time sales records were established for 12 of the 13 weeks in the quarter. Systemwide sales, or sales of both company and franchise restaurants, were a record $808 million for the quarter versus $743 million a year ago. Near said a key factor in Wendy's improved performance has been the increases in per-store sales. Customer transactions rose 5 percent for the quarter while prices actually decreased almost 1 percent, part of the company's continuing commitment to value pricing. "We have attracted more customers into the restaurants with special sandwiches, such as the Chicken Cordon Bleu and our increasingly popular Super Value Menu products at 99 cents each everyday," Near added. "We're confident the introduction of our five Fresh Salads To Go will continue this momentum into the second quarter." There were a total of 3,832 Wendy's Old Fashioned Hamburgers restaurants open worldwide as of March 29, 1992, 107 more than a year ago. The company plans to open or have under construction 250 restaurants systemwide this year and reach 5,000 restaurants by the mid-1990s. WENDY'S INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF INCOME (In thousands except per share data) Quarter Ended Quarter Ended March 29 March 31 1992 1991 Revenues: Retail sales $255,453 $223,745 Royalties 20,327 19,561 Other 2,783 2,723 Total 278,563 246,029 Costs & expenses: Cost of sales 151,594 132,516 Company restaurant operating costs 73,979 67,192 General and administrative expenses 22,681 20,054 Depreciation and amortization of property and equipment 14,966 13,959 Interest, net 3,332 3,004 Total 266,552 236,725 Income before income taxes and extraordinary loss 12,011 9,304 Income taxes 4,324 3,396 Income before extraordinary loss 7,687 5,908 Extraordinary loss on early extinguishment of debt (net of income tax benefit of $9) (14) -- Net Income $ 7,673 $ 5,908 Per share data (primary and fully diluted): Income before extraordinary loss $.08 $.06 Extraordinary loss -- -- Net income $.08 $.06 Dividends $.06 $.06 Primary weighted average shares outstanding 101,083 98,260 Systemwide sales $808,000 $743,000 Average net sales per domestic restaurant: Company $216,400 $206,000 Franchise 207,800 194,800 Total domestic 210,500 198,000 Number of restaurants: Company 1,166 1,066 Franchise 2,666 2,659 Total 3,832 3,725 -0- 4/29/92 /CONTACT: Denny Lynch of Wendy's International, Inc., 614-764-3413/ (WEN) CO: Wendy's International, Inc. ST: Ohio IN: LEI SU: ERN
KK -- CL006 -- 4206 04/29/92 09:19 EDT
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|Date:||Apr 29, 1992|
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