Wendy’s announced fourth quarter earnings this morning, and the shares are ripping after the strong report.
Shares are trading up 9% pre-market.
“North America Company-operated restaurants generated a same-restaurant sales increase of 1.9 per cent [in 2013], compared to an increase of 1.6 per cent in 2012. Franchise same-restaurant sales in North America increased 1.7 per cent, compared to an increase of 1.6 per cent in 2012,” according to the company. “Same-restaurant sales accelerated in the second half of the year compared to the first half. Driving the positive same-restaurant sales growth was the strong consumer reaction to the Company’s successful 2013 promotions, most notably, the Pretzel Bacon Cheeseburger, Pretzel Pub Chicken sandwich, and Bacon Portabella Melt on Brioche.”
Wendy’s also posted better margins thanks in part to lower paper bag and beverage costs and a reduction in breakfast advertising.