Wendy's reaffirms 2012 outlook

Wendy's sees key sales measure improve; reaffirms 2012 outlook

Associated Press

DUBLIN, Ohio (AP) -- The Wendy's Co. said it expects a key sales measure will improve for its second quarter and reaffirmed its full-year outlook on Wednesday.

The fast-food company made the announcement ahead of its investor day on Thursday.

Wendy's said it expects revenue from its stores open at least 15 months to increase 3 percent at its company-owned stores in North America. This is considered a key measure as it focuses on the performance of established stores by stripping away the impact of recently opened or closed stores. It is the fifth consecutive quarter of positive sales gains under this measure at its company-operated restaurants.

Wendy's reaffirmed its 2012 outlook for adjusted earnings before interest, taxes, depreciation and amortization from continuing operations in the range of $320 to $335 million. This forecast excludes expected relocation, debt extinguishment and other expenses from the consolidation of Wendy's restaurant support center in Atlanta with one in Dublin, Ohio.

The company is in the middle of reinventing itself, trying to shake customer perceptions that its stores and menu were outdated. It has brought in new executives and separated from Arbys. It is modernizing its restaurants and overhauling its menu. But the company struggled last quarter with higher costs for beef and slower-than-expected sales.

Shares of the Dublin, Ohio-based company rose 2 cents to close at $4.48 and added 12 cents to $4.60 in after-hours trading.

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