010232 Wendy's Reports Earnings DeclineFebruary 21, 2001Dublin, OH - Wendy's International Inc. reported a 15% decline in fourth-quarter profits because of a one-time charge for closing the company's unprofitable Argentina restaurants. But its results without the charge beat analysts' expectations and Wendy's shares were up 78 cents at $24.95 in afternoon trading on the New York Stock Exchange. Wendy's, which operates the world's third-largest hamburger chain, reported net income of $34.4 million, or 29 cents a share, for the quarter ended Dec. 31, compared with $40.5 million, or 33 cents a share, for the same quarter in 1999. Without the charge, net income would have increased 13% to $46 million, or 39 cents a share were 39 cents. Analysts had expected the company to earn 38 cents per share, according to First Call/Thomson Financial. “Our fourth quarter performance, excluding the charge, was better than expected due in large part to Tim Hortons' very strong results in Canada and good cost controls in all areas of our business,” said Kerrii Anderson, executive vice president and chief financial officer. Fourth-quarter revenue increased 7.6% to $572.3 million from $532.1 million a year ago. Same-store sales grew nearly 3.2% for the quarter at Wendy's restaurants and 13% at Tim Hortons coffee-and-doughnut restaurants in the United States. For the year ended Dec. 31, Wendy's earned $169.6 million, or $1.44 a share, up from $166.6 million, or $1.32 cents per share, in the year- earlier period. Sales increased 8.2% to a record $2.24 billion from $2.07 billion. The company opened a record 552 stores during the year. It has 5,792 Wendy's restaurants internationally and 1,980 Tim Hortons.
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