010365 Wendy's Predicts Earnings Shortfall

Dublin, OH - Wendy's International Inc. said lower sales during the winter months and higher utility and beef costs will cause its first-quarter earnings to fall below expectations. However, the hamburger chain said it expects its performance to improve over the rest of the year.

Wendy's said that earnings for the quarter ending April 1 would be 33 cents per share, compared with 30 cents per share in the same quarter last year. Wall Street analysts surveyed by First Call/Thomson Financial had been expecting 34 cents.

The company said full-year goal is 12% to 15% growth, which would put full- year earnings between $1.71 and $1.76 per share. Analysts are projecting $1.71, compared with $1.53 for all of last year, according to First Call.

Same-store sales are up nearly 1% for the quarter at Wendy's restaurants and up about 10% at Tim Hortons coffee-and-doughnut restaurants, the company said.

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