Wendy's announced a sharp decline in net income for the first quarter hurt by expenses incurred to study strategic alternatives. margins slipped 110 basis points due to increased breakfast costs, lower than expected sales and increased commodity costs.
The chain said it made $14.1 million, or 16 cents per share, for the quarter ended Dec. 30, compared with $3 million, or 3 cents a share, for the year-ago period when it recorded charges from the spinoff of the Tim Hortons chain and the sale of Baja Fresh Mexican Grill
Wendy's reports net income from continuing operations was $19.4 million, down from $20 million in year ago period. The net income from discontinued operations was roughly $52.5 million against $52.1 million a year ago resulting in final net income number of about $72 million.
Wendy's announces spin-off of Tim Hortons brand via a dividend distribution. Stock price falls from $67 on September 29, 2006 to $32.52 on October 2, 2006.
Wendy's elects Kerri B. Anderson as interim CEO and President of Wendy's. On the same day James V. Pickett was elected as Chairman of the Board of Directors after sitting on the board for many years.