The company's Tim Hortons restaurant chain experienced a same-store increase of 3.6% to 3.7% at restaurants in Canada and 4.7% in the United States, compared to sales during the same period a year ago. Wendy's same-store sales decreased 5% at US company stores and 5.5% to 5.7% at US franchised restaurants, compared to positive sales in the quarter a year ago. And following suit, Baja Fresh Mexican Grill's system same-store sales declined 4.1%.

Chairman and CEO Jack Schuessler charged that record-high gasoline prices and lower consumer spending levels impacted sales, and store closings from hurricanes Katrina and Rita impacted Wendy's restaurants during the period. "We are not pleased with our Wendy's and Baja Fresh sales trends, and everyone in the organization is focused on improving results," Schuessler said in a statement.

As a result of hurricanes Katrina and Rita, Wendy's lost 2,676 full store days through the end of the third quarter, as well as a number of partial store days. As of Oct. 2, 26 company and 21 franchised Wendy's in Louisiana, Mississippi and Texas had not reopened. The company predicts that the storms will cut third-quarter earnings by 2 cents per share.