Wendy's Q4 Comps Drop

DUBLIN, OH-Fourth-quarter same-store sales in Wendy’s International’s flagship chain slide year-over-year, as executives at the fast-food giant continue attempts to turn around the company. The sales at Wendy’s nearly 1,400 company-owned units dropped 2.9% in its Q4, and comps at its close to 4,700 franchises fell 1.9%. The company’s Baja Fresh Mexican chain, which operates just over 300 units, also struggled, dropping 2.9%.

Meanwhile, Wendy’s Tim Horton’s chain, which has a March IPO planned, fared well. The chain’s nearly 300 US units posted a 6.7% rise, and its 2,800 Canadian units rose 5.8%. “We’ll be smaller, we’ll be more focused and we’re already evolving our comprehensive plan,” said Jack Schuessler, Wendy’s chairman and chief executive officer, about the Tim Horton’s spin-off during a conference call about the sales results.

The company closed 40 company-owned Wendy’s and four Baja Fresh units during the quarter, which ended Jan. 1. It has also sold 175 real estate units, generating $169 million in cash, including a $119-million deal that closed earlier in the week. Wendy’s executives plan to sell 25 more units in the current quarter.