Wendy's reports weak sales in 4th quarter

DUBLIN, Ohio -- Wendy's International Inc., which is considering options for the No. 3 hamburger chain that include a possible sale, reported weak fourth-quarter sales on Friday that sent the company's stock to a fresh 52-week low.

Wendy's said sales at stores opened at least a year, considered a key indicator of a retailer's strength, fell 0.8 percent at U.S. company restaurants in the quarter compared with a 3.1 percent increase in the prior year. At franchise restaurants, same-store sales were up 0.2 percent, compared with a 2.7 percent increase in last year's fourth quarter.

For the year, same-store sales rose 0.9 percent for company stores and 1.4 percent for franchise stores.

"Although we made progress during the fourth quarter, I am not satisfied by our same-store sales results," Kerrii Anderson, Wendy's chief executive and president, said in a statement.

Wendy's stock closed down 6.1 percent, or $1.52, to $23.34 Friday, after earlier in the day hitting a new annual low of $23.20. The stock has traded between $24.81 and $42.22 in the past year.

Wendy's stock peaked last summer following last April's announcement that Wendy's formed a committee to look at ways the company could boost its stock price, including a possible sale.

Billionaire investor Nelson Peltz, who controls 9.8 percent of Wendy's stock along with his allies, submitted an offer to buy Wendy's in November, but the proposed price is below the $37 to $41 a share that he had previously said the chain is worth.

Anderson said in the statement that Wendy's is working to increase sales with new products and customer service initiatives and advertising.

The initiatives come as Wendy's searches for a new chief marketing officer after Ian Rowden resigned for personal reasons. Rowden helped implement Wendy's new advertising campaign built on the slogan "That's right" that was designed to attract younger customers.

Some ads include an actor wearing a red wig with pigtails like Wendy, the chain's mascot based on the daughter of founder Dave Thomas.

Wendy's, based in the Columbus suburb of Dublin, operates about 6,700 restaurants in the United States and abroad. It trails McDonald's Corp. and Burger King Holdings Inc. in the burger business.