The Wendy's Company Announces Executive Changes; Provides Increased Divided Outlook, Payable on December 15, 2014
Nov 6 14
The Wendy's Company announced that Scott A. Kriss, currently the Company’s Senior Vice President – Tax, will succeed Steven B. Graham as the Company’s Chief Accounting Officer on November 10, 2014. Mr. Kriss’ new title will be Senior Vice President – Chief Accounting and Tax Officer. Mr. Graham’s employment was impacted as part of the general and administrative expense reduction plan described in Item 2.05 above and he will transition from the Company in February 2015. Mr. Kriss has been Senior Vice President – Tax for the Company since June 2012. In this position, Mr. Kriss has been responsible for controlling, administering and managing all aspects of the Company’s tax function. Prior to joining the Company, Mr. Kriss served as Tax Director – Americas for Bacardi-Martini Inc. from December 2010 to May 2012. In this capacity, Mr. Kriss was responsible for all aspects of Bacardi’s tax function in the Americas.
The company announced that its Board of Directors has authorized a 10% increase in the quarterly cash dividend rate from $0.05 to $0.055 per share. The increase will be effective with the next quarterly cash dividend, which is payable December 15, 2014, to shareholders of record as of December 1, 2014.
The Wendy's Company Announces Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended September 28, 2014; Reports Impairment Charges for the Third Quarter; Provides Earnings Guidance for the Fiscal Year of 2015; Reaffirms Earnings Guidance for the Year of 2014; Expect to Open 200 Company Restaurants and 175 to 200 Franchised Restaurants in 2014
Nov 6 14
The Wendy's Company announced unaudited consolidated earnings results for the third quarter and nine months ended September 28, 2014. For the quarter, the company reported revenues of $512,489,000 compared to $640,779,000 a year ago. Operating profit was $46,923,000 against $26,810,000 a year ago. Income before income taxes and non-controlling interests was $34,092,000 compared to $13,463,000 year ago. Net income attributable to company was $22,830,000 or $0.06 per basic and diluted share compared to net loss attributable to company of $1,939,000 or $0.00 per basic and diluted share a year ago. Adjusted EBITDA was $94,125,000 against $98,737,000 a year ago. Adjusted income was $29,617,000 or $0.08 per share against $30,254,000 or $0.08 per share a year ago.
For the nine months, the company reported revenues of $1,559,112,000 compared to $1,895,005,000 a year ago. Operating profit was $199,791,000 against $106,264,000 a year ago. Income before income taxes and non-controlling interests was $162,216,000 compared to $29,747,000 year ago. Net income attributable to company was $98,140,000 or $0.26 per basic and diluted share compared to $12,418,000 or $0.03 per basic and diluted share a year ago. Adjusted EBITDA was $285,691,000 against $278,122,000 a year ago. Adjusted income was $90,083,000 or $0.24 per share against $75,132,000 or $0.19 per share a year ago. Year-to-date, the company have generated cash flow from operations of about $183 million. Year-to-date, capital expenditures were approximately $200 million, reflecting the acceleration of Image Activation activity compared to last year.
For the quarter, the company reported impairment of long-lived assets of $3,408,000 against $5,327,000 a year ago.
The remainder of 2014, the company is reaffirming guidance for adjusted EPS. For 2014, the company continues to expect adjusted earnings per share of $0.34 to $0.36. The company now expects 2014 adjusted EBITDA of approximately $390 million, an increase of approximately 6% compared to 2013. Capital expenditures are expected to be between $280 and $290 million. Effective tax rate is expected to be between 38% and 40%.
The company continues to expect adjusted EBITDA growth in the mid-to-high single-digit range in 2015, followed by high single-digit growth in 2016 and low-double-digit adjusted EBITDA growth beginning in 2017. The company expects mid-teens Adjusted Earnings per share growth beginning in 2015. This outlook includes the expectation for annual same-restaurant sales growth of at least 3% beginning in 2015.
The company is on track to reimage 200 company restaurants and now expect 175 to 200 franchised restaurants in 2014.