021105 Wendy's Tightens Forecast for 2002November 8, 2002Dublin, OH - Wendy's International Inc. tightened its 2002 earnings forecast and said unusually wet weather hampered sales in October. The new forecast was below Wall Street expectations, and Wendy's shares fell. The nation's third largest hamburger chain said it expects year-end earnings in the range of $1.90 to $1.91 per share, an increase of 15% to 16%. Previously, the company said it anticipated growth of 15% to 18%. Analysts surveyed by Thomson First Call were expecting earnings of $1.93 per share. Wendy's stock was down 3%, or 87 cents per share, to $28.62 at midday Thursday on the New York Stock Exchange. Wendy's said fourth quarter earnings will be impacted by lower sales than anticipated in October because of 10 days of wet weather and the Canadian exchange rate, which did not improve as the company expected. Wendy's has 2,107 Tim Hortons restaurants in Canada, and that division generates about one-third of the company's income. The fourth quarter and 2002 results will be released Jan. 31. Despite the lower-than-anticipated October sales, same-store sales were up 2.6% that month at Wendy's U.S. company restaurants and up 7.8% at Tim Hortons restaurants in Canada and 9.6% in the United States. The company, founded in 1969 by Dave Thomas and based in this Columbus suburb, has more 8,500 Wendy's, Tim Hortons and Baja Fresh restaurants.
E-mail: sflanagan@sprintmail.com |
