The Wendy's Company reported preliminary unaudited results for the fourth quarter and full year ended December 28, 2014. The company plans to release its audited financial results on or before February 26, 2015.
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Wendy's Company-operated restaurants generated a same-restaurant sales increase of 1.9 percent in the fourth quarter of 2014 and 5 percent on a two-year basis. Franchise same-restaurant sales in North America increased 1.6 percent during the quarter.
Consolidated revenues were $502 million in the fourth quarter of 2014, compared to $592.4 million in the fourth quarter of 2013. The 15.3 percent decrease resulted from the ownership of 412 fewer Company-operated restaurants at the end of the 2014 fourth quarter compared to the end of the 2013 third quarter, partly offset by higher same-restaurant sales, and increased rent and royalty revenue.
North America Company-operated restaurant margin was 16.8 percent in the fourth quarter of 2014, compared to 16.3 percent in the fourth quarter of 2013. The 50-basis point margin improvement was due mostly to higher same-restaurant sales, partly offset by an increase in commodity costs of 160 basis points (primarily due to higher prices for fresh beef).
General and administrative expense was $60.1 million in the fourth quarter of 2014, compared to $77.2 million in the fourth quarter of 2013. The 22.2 percent decrease resulted primarily from cost savings related to the Company's system optimization initiative, as well as lower incentive and stock compensation and a reduction in Image Activation cash incentives resulting from the Company's previously announced change in its franchisee incentive program structure.
Adjusted EBITDA was $107.1 million in the fourth quarter of 2014, up 20.3 percent compared to fourth-quarter 2013 Adjusted EBITDA of $89.0 million. The 2014 results include $8.3 million in pretax gains, primarily from the sale of restaurants not included in the Company's system optimization initiative. Such gains were immaterial in the fourth quarter of 2013.
Operating profit was $51.7 million in the fourth quarter of 2014, compared to $28.9 million in the fourth quarter of 2013. The 78.9 percent increase resulted primarily from year-over year reductions in impairment charges and depreciation and amortization expense, partly offset by increased Facilities actions charges.
Net income attributable to The Wendy's Company was $23.3 million in the fourth quarter of 2014, compared to $33.1 million in the fourth quarter of 2013. The decrease was primarily the result of a tax rate of 40.4 percent in the fourth quarter of 2014 compared to a tax benefit of 12.4 percent in the fourth quarter of 2013.
Adjusted Earnings Per Share were $0.10 in the fourth quarter of 2014, compared to $0.11 in the fourth quarter of 2013.
Reported earnings per share were $0.06 in the fourth quarter of 2014, compared to $0.08 in the fourth quarter of 2013. ■