Wendy's Q3 Loss Narrows - Quick Facts

(RTTNews) - Wendy's Company (WEN) said that its third-quarter of 2013 net loss attributable to the company narrowed to $1.94 million from last year's $26.16 million. On a per share basis, the company reported breakeven, compared to a loss per share of $0.07 in the prior year.

Significant items negatively affecting this year's reported net loss, in addition to those mentioned above, include a $28.3 million negative year-over-year variance in the Company's provision for income taxes. Significant items negatively affecting last year's reported net loss include a $49.9 million pretax loss on early extinguishment of debt.

Adjusted earnings per share were $0.08, compared to $0.02 last year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.06 per share for the quarter. Analysts' estimates typically exclude special items. Last year's third-quarter Adjusted Earnings Per Share results of $0.03 have decreased by $0.01 to reflect tax matters from prior years.

The Company reported operating profit of $26.8 million, compared to $31.2 million last year. Significant items negatively affecting this year's reported operating profit include a $22.3 million pretax net charge related to facilities actions, and a $5.3 million impairment charge. Significant items negatively affecting last year's reported operating income include an $11.4 million pretax net charge for facilities actions.

Wendy's North America Company-operated restaurants generated a same-store sales increase of 3.2 percent, compared to 2.7 percent last year. Franchise same-store sales in North America increased 3.1 percent, compared to 2.9 percent last year.

Consolidated revenues were $640.8 million, compared to $636.3 million last year. Fourteen. Fourteen analysts estimated revenues of $643.21 million for the quarter. The revenue increase resulted primarily from the same-store sales increases; Technical assistance fees and higher rental income from the sale of restaurants to franchisees pursuant to the Company's system optimization initiative.

The company projects that its fourth-quarter Adjusted EBITDA will decline approximately ten percent compared to the fourth quarter of 2012.

For 2013, the Company raised its Adjusted EBITDA outlook to approximately $365 million and its adjusted earnings per share outlook to approximately $0.25. Analysts project annual earnings per share of $0.23.

Estimated 2013 Adjusted Earnings Per Share excludes approximately $40 million of anticipated pretax depreciation for existing assets to be replaced as part of the Image Activation initiative. This amount is up from the previous guidance of $20 to $25 million, due to accelerated depreciation from the 2014 class of Company-operated Image Activation reimaged restaurants.

The company increased its 2013 Company-operated restaurant margin outlook to approximately 15.0 percent, compared to 14.0 percent in 2012, due to higher same-store sales, ongoing cost control initiatives and favorability in its commodities forecast.