010507 Wendy's Reports a 7.7% Increase in Earnings

Dublin, OH - Wendy's International Inc. reported a 7.7% increase in earnings in the first quarter, saying it would have done better without higher costs for beef and utilities.

The hamburger restaurant chain operator also said its board has named president and chief executive Jack Schuessler as chairman. The position has been vacant since the death of Gordon Teter on Dec. 18, 1999.

Schuessler will keep his duties as chief executive. No one was appointed to replace him as president.

Earnings for the quarter that ended April 1 totaled $38.7 million or 33 cents a share, compared with earnings of $35.9 million, or 30 cents a share. a year ago.

Sales rose to $556 million from $519 million a year ago.

The earnings per share was in line with the estimate of analysts surveyed by Thomson Financial/First Call. The company lowered its estimate from 34 cents a share in March.

But Wendy's stock was down 16 cents to close at $25.55 Wednesday on the New York Stock Exchange.

The company said sales at its Tim Hortons coffee-and-doughnut chain were strong in the first quarter while Wendy's was hurt by severe weather in January and early February and deep discounting in the fast-food industry. The company also it was hurt by a weaker Canadian dollar.

Wendy's is the third largest quick-service hamburger chain in the world with more than 5,800 restaurants in the United States, Canada and other countries. Tim Hortons has more than 2,000 restaurants, with nearly 1,900 in Canada.

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