DUBLIN Ohio A strategy of raising prices to match competitors' charges dampened Wendy's transactions during the quarter ended July 1, holding same-store sales gains to .7 percent for company-run units and .4 percent for franchised stores, Wendy's International Inc. said Friday.
"Second-quarter same-store sales growth was not as strong as the first quarter as we continue to execute our market-based pricing strategy," president and chef executive Kerrii Anderson said in a statement. "We believe this is impacting transactions in the short term, but will position us to produce profit expansion in the future."
Earlier this year, the nation's third-largest burger chain disclosed plans to bring the prices of its premium products into alignment with comparable items at competing chains on a market-by-market basis. The effort is consistent with management's pledge to shareholders and franchisees to bolster profits.
In releasing the preliminary financial results, Wendy's disclosed that it plans to promote a new burger called the Baconator, consisting of a half-pound beef patty topped with six strips of bacon. It did not divulge the price.
The third-quarter promotion of the hefty new burger would follow the June introduction of the $1.99 Triple Stack cheeseburger, consisting of three hamburger patties sandwiched between slices of cheese, and the April debut of the Steakhouse Double-Melt, with two patties and three strips of bacon.
Anderson noted that the second-quarter results mark Wendy's 13th consecutive quarter of positive same-store sales.
The results were released three days after militant shareholder Nelson Peltz sent a letter to Wendy's chairman Jim Pickett, urging him to facilitate the due-diligence for a possible sale of the company to Peltz's Triarc Cos., the parent of the Arby's sandwich chain. Wendy's has said that it is exploring a sale while continuing to evaluate other ways of boosting the value of shareholders' interests.
