Wendy’s profit jumps on sales, more stores

Higher sales and revenue from more restaurants are helping Wendy’s bottom line.

The Dublin-based chain reported profit of $26.5 million Wednesday, or 11 cents per share, for the three months that ended Dec. 29, a 41% jump from the same period in 2018.

“We have momentum in our business as evidenced by our accelerating sales growth in the second half of the year, which sets us up well going into 2020,” President and CEO Todd Penegor said.

Wendy’s is focused on three areas of growth: breakfast, digital and its international business, Penegor said.

“We are well-positioned to drive growth in 2020, and I’m more confident than ever that we will achieve our vision of becoming the world’s most thriving and beloved restaurant brand,” he said.

Revenue for the period rose 7% to $427.2 million.

Sales at stores opened at least a year, considered a key indicator of restaurant performance, increased 4.3% during the quarter.

Wendy’s added 45 restaurants during the quarter.

The company did report a lower operating profit for the quarter compared with the same period in 2018 because of costs tied to Wendy’s rollout of breakfast and other expenses.

For all of 2019, Wendy’s earned $136.9 million, or 58 cents per share, down from 2018, when the company sold its stake in Arby’s. Revenue for the year rose to $1.7 billion.

The company gave a 2020 profit outlook below Wall Street estimates.

The company said it expects to make 60 to 62 cents per share while analysts are looking for 65 cents per share.