020222 Wendy's Earnings Up 35 Percent

Dublin, OH - Wendy's International Inc. reported that profits increased 35 percent in the fourth quarter despite higher costs for beef, labor, training and utilities.

The hamburger chain posted earnings of $46.6 million, or 42 cents per share, for the quarter that ended Dec. 30 -- less than two weeks before the death of Wendy's founder and top pitchman Dave Thomas. That compares with earnings of $34.4 million, or 29 cents per share, in the year-earlier period. Results were in line with Wall Street's expectations.

Revenue increased 7.6 percent to $615.7 million from $572.3 million a year earlier.

“We delivered good results in a very challenging environment,” chairman and chief executive Jack Schuessler said.

“Overall, our business showed resiliency over the past year, especially during the weeks following the Sept. 11 terrorism tragedy. ... Consumers found comfort in visiting our restaurants.”

For the full year, the company posted a 14 percent increase in profit as it continued to expand both its Wendy's hamburger and Tim Hortons coffee-and- doughnut chains. Earnings totaled $193.6 million, or $1.65 per share, a penny short of estimates from analysts surveyed by Thomson Financial/First Call. That compares with $169.6 million, or $1.44 per share, in 2000.

Revenue for the year totaled $2.39 billion, up from $2.24 billion in 2000.

Same-store sales, often the best indicator of sales health, were up 2.1 percent for the year in U.S. Wendy's franchises. Same-store sales for Tim Hortons increased nearly 8 percent in both the United States and Canada.

The company opened 334 Wendy's and 201 Tim Hortons restaurants during the year.

Wendy's bought back 11.3 million shares of its stock in 2001 for $287 million, bringing the total to 33.1 million shares for $779 million under a buyback program that began in 1998.

Wendy's has 6,043 restaurants in the United States, Canada and other countries. Tim Hortons has 2,163 restaurants, with nearly 1,900 in Canada.

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