Feb 28 The Wendy's Co, the
second-largest U.S. hamburger chain, reported higher quarterly
profit and stuck by its 2013 profit forecast on Thursday, even
as its customers face new financial pressures from higher taxes
and gasoline costs.
Wendy's stock jumped 3.6 percent, or 2 cents, to close at
$5.70 on Nasdaq after the company nudged up fourth-quarter
profit results versus what it preannounced on Jan. 16 due to
lower-than-expected charges. The company also reiterated its
2013 adjusted earnings forecast of 18 cents to 20 cents per
Still, the chain that has received a sales bump from new
menu items and renovated restaurants joined rivals ranging from
Burger King Worldwide Inc to Olive Garden parent Darden
Restaurants Inc in saying that diners are grappling with
new financial strains.
"Consumers are no doubt feeling the effect of higher
gasoline prices, the payroll tax increase, and delayed tax
refund checks," Wendy's President and Chief Executive Officer
Emil Brolick said in a conference call with analysts.
Wendy's fourth-quarter net income rose to $26.4 million, or
7 cents per share, in the fourth quarter from $4.0 million, or 1
cent per share, a year earlier.
Earnings per share were 1 cent higher than the company's
preliminary announcement due to a smaller-than-expected charge
related to discontinuing breakfast operations at certain
restaurants and a reduction of depreciation and amortization net
of taxes, executives said in a conference call with analysts.
Excluding items, Wendy's earned 9 cents per share, analysts
said. That is 5 cents better than what analysts expected,
according to Thomson Reuters I/B/E/S.
Revenue rose just over 2 percent to $629.9 million in the