Dublin, Ohio – The Wendy’s Co. reported soaring net income in the first quarter of fiscal 2014 on lower costs and a sharp decline in interest expenses. The company also said it plans to open 60 new corporate and franchised stores, as well as remodel up to 400 corporate and franchised stores.
Wendy’s net income skyrocketed from $2.1 million to $46.2 million, aided by a $15 million year-over-year reduction in interest expense as a result of the company's 2013 debt restructuring.
Revenue fell 13% to $523.2 million because of lost revenue following the disposition of 418 company-operated restaurants as part of the company’s “system optimization” initiative. Same-store sales rose 1.3% for company-operated locations and 0.6% for franchise North America sites.
Wendy’s said it plans to reimage 200 company-operated restaurants and 150 to 200 franchise-operated restaurants in 2014.