Wendy’s Posts Q2 Loss, Misses on Revenue

The company took a $25 million charge for early debt retirement

   

Wendy’s Posts Q2 Loss, Misses on Revenue

Wendy’s (NASDAQ:WEN) posted a loss of $5.5 million for the second quarter on Thursday, compared to earnings of $11.3 million in the same period last year.

The loss was largely the result of a $25.2 million pretax charge related to the early debt repayment.

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Quarterly revenue was $645.9 million, up 3.8% from 2011, but less than the $647 million analysts had estimated, the Wall Street Journal noted.

EPS, excluding the charge, was 5 cents, which matched Wall Street forecasts.

Shares of Wendy’s rose fractionally in Thursday afternoon trading.

The burger chain is continuing to change its menu and update the appearance of its restaurants as it attempts to reclaim lost market share. The company expects to open 20 new restaurants this year, 17 of which will use new designs meant to entice customers.

Sales at North American restaurants open at least 15 months increased 3.2% during the quarter. The operating margin at company-owned North American locations increased from 13.9% last year, to 14.1%.

Last week, Burger King (NYSE:BKW) announced second-quarter earnings that beat Wall Street estimates on revenues that fell 9% from last year.


Article printed from InvestorPlace Media, http://investorplace.com/2012/08/wendys-posts-q2-loss-misses-on-revenue/.

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