Baja Fresh pre-tax charges contribute to $29.1M Wendy's loss

DUBLIN, Ohio — Wendy's International reported a net loss of $29.1 million for the second quarter, which ended July 2, 2006 The company partially blamed the pre-tax charges for Baja Fresh of $122.5 million ($93 million after tax) and severance related to restructuring for the loss.

 

"Excluding charges and costs for our restructuring initiatives, our core Wendy's business is improving," said interim chief executive officer and president Kerrii Anderson. "During the second quarter Wendy's produced the strongest same-store sales gains in the last seven quarters and food costs are improving."

 

Wendy's company-owned same-store sales were up slightly at 0.7 percent while franchise stores increased 1 percent. Baja Fresh's comps dropped 5.5 percent.