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Wendy’s Profit Surges 35% in 4th Quarter

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From Associated Press

Wendy’s International Inc. on Monday reported its earnings rose 35% in the fourth quarter and 29% for all of 1990 as sales at its restaurants increased from year-earlier levels.

The company also announced that James Near, its president and chief executive, had been promoted to chairman. Gordon Teter, the former executive vice president for operations, was named president and chief operating officer.

The operator and franchiser of Wendy’s Old Fashioned Hamburger restaurants said it earned nearly $7.8 million in the fourth quarter, up 35% from $5.7 million in the final quarter of 1989.

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Revenue totaled $249.5 million, down from $261.1 million a year earlier.

For the full year, Wendy’s reported earnings of $39.3 million, up from $30.4 million, recorded the previous year.

Revenue totaled $1 billion, down from $1.1 billion. The company attributed the slip to fewer company-owned restaurants.

The company said its systemwide sales, those for both company-owned and franchised restaurants, totaled $761 million for the quarter, compared to $740 million for the year-ago period. For the full year, sales reached $3.07 billion, up from $3.04 billion in 1989.

The chairman’s position had been vacant since Robert Barney retired last year. R. David Thomas, Wendy’s founder, remains the company’s senior chairman.

John Casey, an executive vice president, was named vice chairman. Teter’s post as executive vice president for operations was eliminated.

Thomas said in a news release that the changes were being made “to recognize people who are playing major roles in the success of the company.”

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Wendy’s franchises or operates 3,727 hamburger restaurants in the United States and 23 other countries.

Earnings tables, D15

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