DUBLIN Ohio Wendy's International Inc. blamed higher commodities costs and charges related to its restructuring process for a 32-percent plunge in second quarter net income.
For the second quarter ended June 29, Wendy's earned $19.9 million, or 22 cents per share, compared with $29.2 million, or 33 cents a share, a year ago. Excluding $10.1 million in restructuring costs and charges related to a special board committee's review of strategic alternatives, Wendy's would have earned 30 cents a share for the quarter, it said.
Wendy's is being acquired by Arby's parent Triarc Cos. Inc., in a deal valued at $2.3 billion that's expected to close by year-end.
Wendy's revenue for the latest quarter fell 0.2 percent from a year earlier to $631.9 million. Same-store sales were up 0.1 percent for company stores and 1.1 percent for franchised units.
Kerrii Anderson, Wendy's outgoing chief executive, said higher commodity costs of about $11 million, primarily due to rising grain and fuel prices, contributed to the company's disappointing results. She said Wendy's would work on menu management and supply chain initiatives to help offset soaring commodity prices.
Anderson also said Wendy's would focus on driving sales with a balance of premium products, such as the Baconator sandwich, and value items.
Wendy's and its franchisees operate 6,625 restaurants.