Wendy's reaffirms 2014 guidance


Earnings are somewhat ahead of preliminary results released last month thanks to an arcane accounting adjustment.

Company reaffirms its 2014 outlook for adjusted EBITDA of $390M-$400M, "despite the adverse impact from winter storms during the first quarter" [they have to be kidding] Adjusted EPS is still expected at $0.34-$0.36. Average same-restaurant-sales growth of 2.5-3.5% at Company-operated stores (was 1.9% in 2013). Company-operated restaurant margin improvement of 140-160 basis points.

Management expects to continue to sell certain Company-owned restaurants to franchisees. Another 415 restaurants are on schedule to be sold by the end of Q1 for total proceeds to about $235M. Agreements are inked on another 174 restaurants.

8.7M shares repurchased during 2013 at average price of $7.93 each. Pursuant to the Dutch Tender offer, 29.7M shares purchased in February at average price of $9.25 each.

Due to the January preliminary release, there will be no CC today.

WEN -3% premarket.

From other sites
Comments (0)
Be the first to comment
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs