Wendy’s International in Red During Quarter
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Wendy’s International suffered a $47.05-million loss in the third quarter because of declining sales and a one-time pretax charge of $75 million for anticipated losses related to discontinuing more than 150 company-owned restaurants.
A year ago, the company had net income of $20.79 million. Sales in the latest quarter totaled $293.52 million, down from last year’s $303.36 million.
The Dublin, Ohio-based fast-food chain said it will either sell, lease or close 164 marginal or unprofitable company-owned restaurants--120 Wendy’s outlets in the United States, 18 Sister Restaurants and 26 Wendy’s in Europe--as part of a major realignment. The company owns only five of the 240 Wendy’s in California.
A Wendy’s spokesman declined to identify which company stores might be closed.
As part of the restructuring, Wendy’s also said it will buy up to 5 million of its own shares and raised its quarterly dividend 1 cent a share to 6 cents, payable Nov. 21 to shareholders of record Nov. 7.
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