020754 Wendy's Net Rises

New York - Fast-food restaurant operator Wendy's International Inc. said second-quarter earnings rose 14%, lifted by strong sales driven by a recently launched line of salads and a lower-priced "value" menu.

Wendy's , the nation's No. 3 chain behind McDonald's Corp. and Burger King, also lifted its full-year outlook for the second time in less than a month. It now projects 2002 earnings per share between $1.90 to $1.95, up from its previous forecast of $1.87 to $1.92 given on July 3, which was also raised from an earlier target.

The Dublin, Ohio-based company reported net income of $63.7 million, or 54 cents a diluted share, compared with $56 million, or 47 cents a share, a year earlier.

The results beat the average earnings estimate of 53 cents a share among 17 analysts polled by Thomson First Call.

Systemwide sales for the quarter increased 13.4% to $2.4 billion. Revenue, comprising retail sales and franchise revenues, rose 12% to $684 million.

Earlier this month, Wendy's said sales at U.S. company-owned restaurants open for at least 13 months, or same-store sales, rose 6.6% in the second quarter. Looking ahead, it said it expects same-store sales would increase between 5.5% and 6.5% at its U.S. company restaurants.

Wendy's also backed its previously held long-term earnings per share growth target of between 12 to 15%.

Source: Reuters

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