020506 Wendy's Reports 12% Gain

Dublin, OH - Wendy's International Inc. said its first quarter profits were up 12%, helped by a new line of salads and more stores.

The "outpouring" of affection and added visits after the Jan. 8 death of Wendy's founder Dave Thomas might have slightly increased sales that month, spokesman John Barker said.

The company said it made $43.4 million, or 39 cents a share, for the quarter that ended March 31, compared with $38.7 million, or 33 cents a share, the same period a year ago. Sales were up 10% to $612 million from $556 million.

The earnings matched estimates of analysts surveyed by Thomson Financial/First Call.

The company opened 45 Wendy's and 26 Tim Hortons coffee-and- doughnut restaurants during the quarter.

Savings came from new fixed-price beef and chicken contracts, lower staff turnover, slower rates of wage increases and negotiating lower utility rates in some markets, Barker said.

Shares of Wendy's were down 45 cents to $36.95 in trading Wednesday on the New York Stock Exchange.

Wendy's, the nation's third largest hamburger chain, has nearly 6,100 restaurants in the United States, Canada and other countries. Tim Hortons has more than 2,000 restaurants, nearly all in Canada.

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