Wendy's Introduces Three New BBQ Pulled Pork Offerings
Sep 29 14
The Wendy's Company has introduced three new BBQ Pulled Pork offerings, BBQ Pulled Pork Sandwich, BBQ Pulled Pork Cheeseburger and BBQ Pulled Pork Cheese Fries. Wendy's new BBQ Pulled Pork offerings feature hickory-smoked pulled pork that's shredded rather than chopped to create long, authentic strands with great texture. Wendy's also took a cue from local barbecue spots offering fans a choice of three custom-crafted sauces Sweet, Smoky or Spicy to fit consumers' personal barbecue style. The company giving customers the BBQ choices and flavors they deserve with the convenience of their local Wendy's and for just under $5. Wendy's three original BBQ Pulled Pork offerings, available until early November, include flavors and ingredients that go beyond typical quick-service barbecue condiments of pickles and onions. The BBQ Pulled Pork Sandwich features hickory-smoked pulled pork and crunchy slaw made fresh in Wendy's kitchens every morning, topped with the customer's choice of three custom-crafted BBQ sauces Sweet, Smoky or Spicy all served on a toasted, premium brioche bun. The BBQ Pulled Pork Cheeseburger starts with a fresh, never frozen juicy beef hamburger patty, topped with tender hickory-smoked pulled pork, a slice of natural cheddar cheese, crunchy slaw and one of three barbecue sauces, all stacked on a warm, toasted brioche bun. The BBQ Pulled Pork Cheese Fries use Wendy's Natural-Cut Fries as a foundation for warm cheddar cheese sauce, hickory-smoked pulled pork, diced red onions and a choice of Wendy's three custom-crafted sauces drizzled on top, making the perfect savory snack any time of day.
The Wendy's Company Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2014; Reaffirms Earnings Guidance for the third quarter, fourth quarter, full year of 2014 and 2015, 2016, 2017; Reports Impairment of Long-Lived Assets for the Second Quarter Ended June 30, 2014
Aug 7 14
The Wendy's Company reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2014. For the quarter, the company reported revenues of $523,427,000 compared to $650,544,000 a year ago. Operating profit was $63,854,000 against $56,990,000 a year ago. Income before income taxes and non-controlling interests was $51,581,000 compared to $17,055,000 year ago. Net income attributable to company was $29,007,000 or $0.08 per basic and diluted share compared to $12,224,000 or $0.03 per basic and diluted share a year ago. Adjusted EBITDA was $104,232,000 against $102,086,000 a year ago. Adjusted income was $34,217,000 or $0.09 against $31,779,000 or $0.08 a year ago. The 19.5% decrease resulted from lost revenue following the sale of 418 company-operated restaurants to franchisees as part of the company's system optimization initiative, partly offset by same-restaurant sales growth and increases in both rental income and franchise royalties. At the end of the second quarter, total debt was approximately $1.4 billion and net debt was about $1.1 billion.
For the six months, the company reported revenues of $1,046,623,000 compared to $1,254,226,000 a year ago. Operating profit was $152,868,000 against $79,454,000 a year ago. Income before income taxes and non-controlling interests was $128,124,000 compared to $16,284,000 year ago. Net income attributable to company was $75,310,000 or $0.20 per basic and diluted share compared to $14,357,000 or $0.04 per basic and diluted share a year ago. Adjusted EBITDA was $191,566,000 against $179,385,000 a year ago. Adjusted income was $60,466,000 or $0.16 against $44,878,000 or $0.11 a year ago. Capital expenditures were approximately $115 million as the year-over-year increase of approximately $33 million reflects the acceleration of Image Activation reimaging activity compared to last year.
The expect third-quarter of 2014 same-restaurant sales growth to be slightly less than the low end of full-year outlook of 2.5 to 3.5%. Due to the impact of these restaurant closures, the company expects year-over-year third-quarter adjusted EBITDA to be approximately flat.
However, the company also expect to generate a significant year-over-year increase in adjusted EBITDA in the fourth quarter of 2014, when the company anticipates realizing the benefit of this accelerated activity.
For 2014, the company continues to expect adjusted EBITDA of $390 million to $400 million, an increase of 6% to 9% compared to 2013. The company also continues to expect adjusted Earnings per share of $0.34 to $0.36. The company expects its total 2014 depreciation and amortization expense to decrease approximately 10% compared to 2013, including the impact of accelerated depreciation in both years, primarily as a result of the company's system optimization initiative. Average same-restaurant sales growth of 2.5 to 3.5% at company-operated restaurants. Capital expenditures of $280 to $290 million, including approximately $215 million for company-operated Image Activation restaurants. The company expects effective tax rate of 38 to 40%.
The company anticipates the sale of its Canadian restaurants to reduce adjusted EBITDA by as much as $5 million in 2015, resulting in expected Adjusted EBITDA growth in the mid-to-high single-digit range in 2015. The company continues to expect mid-teens adjusted earnings per share growth beginning in 2015. The company expects the transactions to be neutral to adjusted EBITDA in 2016 and accretive to adjusted EBITDA in 2017 and thereafter. The company expects the transactions to be neutral to net income in 2015 and slightly accretive to net income thereafter.
The company reported impairment of long-lived assets of $63,854,000 for the second quarter of 2014 against $56,990,000 a year ago.