Wendy’s Sees Q4 Revenue Jump, Can’t Offset Arby’s Sale

Wendy’s on Monday announced that a key measure of earnings dropped by 30% in the fourth quarter as charges for the company’s sale of Arby’s offset a jump in revenue. Wendy’s also announced that revenue climbed to $615 million compared to $582.6 million the year prior, edging out analysts predictions of $613 million.

The company says customers are now spending more money per visit which helped push up the company’s revenue by 5.6% while higher prices per meal also helped revenue grow. The company also says that remaking their “Dave’s Hot ‘N Juice burger also appeared to help sales.

The company in recent years has attempted to overhaul its entire image, creating an almost entirely new menu of salads, better tasting frieds, desserts and other foods, while also attempting to grab part of the breakfast market where the company failed in a few years prior.

The fast food chain has also been busy remodeling restaurants in the hopes of drawing in new clientele.

In their financial disclosing Wendy’s executives also announced that income from continuing operations fell to $4.3 million over the last three months, compared to $6.1 million one year prior.

Full financial reports will be made available by the company on March 1.

In a disappointing reporting cycle that was expected by analysts adjusted earnings per share were just 4 cents and excluded a one-time charge for costs associated with the company’s summer sale of Arby’s. If those charges were included the per share price would have been just 1 cent.

News of increased revenues is a good sign from Emil Brolick who became the company’s new CEO in September 2010. Brolick said the company is “making progress on re-establishing Wendy’s as the quality leader and innovator” in fast food.

In a final disclosure Wendy’s announced that it spent $46 million in 2011 to break apart from Arby’s, that spending included severance costs for some employees and retention bonuses for keeping others.

Wendy’s in the meantime has a long road ahead as casual dining franchises such as Five Guys, Chipotle and others continue to eat away at the profits made available to fast food chains in the past.

What do you think Wendy’s needs to do in order to keep business moving forward into the future?