Kerrii Anderson, interim CEO and president, says the company's second quarter marks the "best same-store sales period for the Wendy's brand in more than a year and a half." However, while executives gloat in the silver lining, the company's Baja Fresh Mexican Grill continues to lag with same-store sales declining 5.5% to 5.8%. This follows the chain's comp loss of 3.7% in the company's first quarter.

In hopes of regaining investor confidence, company execs assure that they are on track to achieve $100 million in cost savings, thanks to approximately 115 full-time US employees electing to accept voluntary early retirement packages. The employees who accepted the voluntary early retirement packages comprise a fraction of the total 350 to 375 positions targeted in the company's workforce reduction plan.

The company is now expecting to incur charges during the second quarter as a result of its voluntary early retirement plan, severance related to its planned reduction in workforce and other expenses related to the cost-reduction initiative. The charges, execs say, will contribute to a lower 2006 second-quarter earnings per share compared to the second quarter of 2005.