Wendy’s has weak quarter

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

Wendy’s said sales at stores open 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 fell 5.4 percent, or $1.33, to $23.53 in early afternoon trading Friday. The stock has been as high as $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.