Wendy's International Inc.'s representatives said on Monday that it is exploring a possible sale of the company, the nation's third-largest hamburger chain, as it warned that profits for the year would fall short of Wall Street expectations.
"While a sale remains only one of the alternatives under consideration, we believe it merits more thorough examination," James V. Pickett, Wendy's chairman and head of special committee doing the study, said in a statement.
Shareholders forced the company to form a committee in April to determine its stock price, and a possible sale price.
Wendy's said there is no assurance that a deal will be completed. It expects to make $1.09 to $1.23 per share for the year, primarily because of weaker-than-expected sales at stores open at least a year, considered a key indicator of a retailer's strength, and higher-than-expected commodity costs.
Wendy's said same-store stores are up just 0.7 percent in the second quarter through Friday compared with 3.8 percent in the first quarter.
Kerrii Anderson, Wendy's chief executive and president, said sales in the last two months have been hurt because Wendy's had to raise prices. She added: "We believe our new market-based pricing approach is the right long-term strategy to generate more positive store operating
Wendy's shares went down by $1.47, or 3.7 percent, to $38.26 Monday. - Alla Harutyunyan for HULIQ.COM
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