Wendy's Shares Rise on Strong Sales Outlook
NEW YORK – Wendy's International Inc. (WEN) shares jumped Wednesday after the company forecast same-store sales in 2005 to rise between 1 percent and 2 percent.
The outlook was given during a conference call to discuss the No. 3 U.S. burger chain's announcement late Tuesday that it would report a loss in the current quarter, with plans to close 15 to 18 of its Mexican-style Baja Fresh (search) restaurants.
Shares jumped more than 7 percent in early trading.
"Where results have suffered, actions are being taken, and where the performance has measured up, existing strategies are allowed to run their course," Piper Jaffray analyst Peter Oakes said in a research note. "Even in its state of transition, operating earnings appear to be stabilizing."
Wendy's said it would give a full forecast for 2005 in February.
Shares of Dublin, Ohio-based Wendy's were up $2.54, or 7.1 percent, at $38.21 in New York Stock Exchange (search) trade after climbing as high as $38.50.