Wendy's Expects Adjusted EPS Growth Of 6-12% During 2016 - Quick Facts

(RTTNews) - The Wendy's Company (WEN) announced, during 2016, the company expects: adjusted earnings per share of $0.35 to $0.37; and adjusted EBITDA down 2 percent to flat. Wendy's expects same-restaurant sales growth of approximately 3 percent for the North America system. The company intends to sell approximately 315 restaurants during 2016.

Over long-term, the company expects adjusted earnings per share growth in the high teens in 2017 and adjusted earnings per share growth of greater than 20 percent beginning in 2018. The company expects adjusted EBITDA to be approximately flat in 2017 due to the impact of the anticipated sale of approximately 315 company-operated restaurants during 2016. The company expects adjusted EBITDA to increase approximately 10 percent during 2018.

The company's long-term outlook includes average annual same-restaurant sales growth of approximately 3.0 percent for the Wendy's North America system.

Preliminary same-restaurant sales increased 4.8 percent at North America system restaurants in the fourth quarter of 2015. Adjusted EBITDA from continuing operations was $107.6 million in the fourth quarter of 2015, a 12.3 percent increase compared to $95.8 million in the fourth quarter of 2014.

Preliminary fourth-quarter income from continuing operations was $88.7 million compared to $23.0 million in the fourth quarter of 2014. The company said the increase was primarily due to a year-over-year increase in investment income as a result of a $54.9 million distribution the company received from its 18.5 percent indirect ownership interest in Arby's Restaurant Group, Inc.

Adjusted earnings per share from continuing operations were $0.12 in the fourth quarter of 2015. On average, 17 analysts polled by Thomson Reuters expected the company to report profit per share of $0.11 for the quarter. Analysts' estimates typically exclude special items.