DUBLIN Ohio Shares of Wendy’s International Inc. fell to a 52-week low on Friday after the company reported disappointing preliminary fourth-quarter same-store sales results, including its first quarterly drop in more than a year in corporate same-store sales.
Same-store sales at U.S. company-owned restaurants fell 0.8 percent for the fourth quarter ended Dec. 30, Wendy’s said. That compares with an increase of 3.1 percent for the year-earlier fourth quarter.
For U.S. franchised units, which represent about 80 percent of the Wendy’s system, same-store sales for the fourth quarter inched up 0.2 percent, compared with 2.7-percent increase a year ago.
For the year, same-store sales rose just 0.9 percent at U.S. company restaurants and 1.4 percent at franchised units, Wendy’s reported.
“Although we made progress during the fourth quarter, I am not satisfied by our same-store sales results,” said Kerrii Anderson, Wendy’s president and chief executive.
Anderson said the company’s plan to improve sales in 2008 includes new products, customer service improvements and more effective advertising. In the fourth quarter, Wendy’s rolled out a 99-cent double cheeseburger, called the Stack Attack. The company said it would continue to promote premium large hamburgers and its breakfast menu, which is available in certain markets.
Wendy’s shares fell more than 6 percent in trading Friday to a 52-week low of $23.34. Shares of burger competitors McDonald’s, Burger King, and Hardee’s and Carl’s Jr. parent CKE Restaurants also fell, leading some Wall Street analysts to speculate that the consumer spending slowdown may finally be impacting quick-service restaurants.
Wendy’s expects to release its full 2007 fourth-quarter and full-year results Feb. 4.
Operator or franchisor of more than 6,600 namesake restaurants, Wendy’s has been exploring strategic alternatives since last spring. Activist investor Nelson Peltz, who through his holdings controls about 9.8 percent of Wendy’s stock, made a bid late last year for the struggling No. 3 burger brand.
