Wendy's Quarterly Net Trails Estimates on Lower Sales

[marmar]

from Bloomberg:



Wendy's Quarterly Net Trails Estimates on Lower Sales (Update6)

By Josh Fineman

Feb. 4 (Bloomberg) -- Wendy's International Inc., the U.S. hamburger chain that's been seeking a buyer since April, said fourth-quarter profit rose less than analysts estimated as sales dropped at restaurants open at least 15 months.

Wendy's fell in U.S. trading as executives said today that full-year profit may trail analysts' projections on higher costs for beef and chicken. The company didn't provide an update on a possible sale.

Sales at company-owned locations decreased for the first time in seven quarters as consumers cut back on spending because of gasoline prices near $3 a gallon and declining home values. Frescata deli-style sandwiches and a new advertising campaign failed to lure customers. McDonald's Corp. also experienced slowing U.S. sales in December.

``There is a lot of pressure on the consumer, and we have seen some pretty weak same-store sales results from McDonald's.'' said John Owens, an analyst at Chicago-based Morningstar Inc. in Chicago, who recommends investors hold their shares.

Net income more than quadrupled to $14.1 million, or 16 cents a share, from $3.03 million, or 3 cents, a year earlier, Dublin, Ohio-based Wendy's said today in a statement. Revenue declined less than 1 percent to $596 million.

Earnings in 2008 before interest, taxes, depreciation and amortization will be at the low end of analysts' estimates that range from $324 million to $358 million, Chief Financial Officer Jay Fitzsimmons said on a call with analysts and investors.

``The first part of 2008 looks challenging due to economic headwinds and rising commodity costs,'' Chief Executive Officer Kerrii Anderson said on the call. .....(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601087&sid=aQOwSDEMSM9E&refer=home

[Earth_First]

1. ...and it's YOUR fault.

You are not being the obedient consumer we've trusted you to become.

[MadHound]

2. Sorry, but I've lost my taste for square grease burgers

In fact over the years I've lost my taste for most fast food. Add to this the fact that I live in the country, where there are no food deliveries, and my fast food consumption goes right down the drain.

[nels25]

3. In addition it is impossible

to get a decent french fry at fast food joints anymore (course I am not supposed to be eating them anyway any more).

I can get birchwood hamburger patties at the store go home and make a superior burger.

Buying ground beef and making your own patties makes an even better burger.

But than again that is just me.

Still KFC does have the best chicken hands down!!

:9