Quarterly sales at fast food chain Wendy's grew thanks to new promotions and a fresher look at its restaurants. Fred Katayama reports.
The offer, 4 for $4, did more and more to beef up Wendy's quarterly sales. Like its rivals, the fast-food chain began offering bundled meals - in its case - a Jr. Bacon cheeseburger, chicken nuggets, fries, and a drink. Partly as a result, Wendy's same store sales and sales at franchisees rose nearly 5 percent. Wendy's North American sales fared particularly well, thanks to promotions and a newer look. Shares, however, fell Tuesday as investors worried whether the company could maintain its sales growth amid the competition. Nomura analyst Mark Kalinowski - who has a buy rating on the stock - believes the bundled meal helped draw customers. He says deals offered by rivals such as Burger King and Hardee's/Carl's Jr. did not hurt Wendy's business. Like other restaurant chains, Wendy's has been selling its company-owned restaurants to franchisees in a bid to cut spending. It plans to sell about 315 more restaurants this year.