CHICAGO (MarketWatch) -- High gas prices and hurricanes cut into third-quarter revenue and earnings at Wendy's International, as the hamburger chain said Wednesday that U.S. same-store sales were down sharply.
The stock gained 1.3% to $47.33 following a brief dip at the open. In addition, while the company's Tim Hortons restaurants saw same-store sales increase by 3.6% to 3.7% in Canada and by 4.7% in the United States, similar sales for its Baja Fresh Mexican Grill fell 4.1%.
Wendy's blamed the drop on high gasoline prices, lower consumer-spending levels and store closings from the Gulf Coast's two recent hurricanes.
The storms will lower earnings by 2 cents a share in the third quarter, while high beef prices will subtract another 2 cents, Wendy's said.
"We are not pleased with our Wendy's and Baja Fresh sales trends, and everyone in the organization is focused on improving results," said Chief Executive Jack Schuessler in the sales report.
Hurricanes Katrina and Rita resulted in the loss of 2,676 full store days -- 1,460 company and 1,216 franchise -- through the end of the third quarter, as well as a number of partial store days, according to Wendy's.
As of last Sunday, 26 company and 21 franchised Wendy's in Louisiana, Mississippi and Texas had not yet reopened for business.
