Wendy's remodeled restaurants experiencing traffic boosts

The Wendy's Co. has reported Q1 results, including a same-store sales increase of 1.3 percent at company-operated stores, on top of a 1 percent increase last year.

CEO Emil Brolick said in a press release that the sales lifts were driven by successful product promotions and increased customer traffic at remodeled restaurants.

"Our Image Activation initiative is accelerating, bringing to life our 'A Cut Above' brand position for consumers in a powerful way. Our product initiatives are successfully leveraging our brand heritage of quality and innovation and are distinguishing Wendy's in the marketplace," he said.

Franchised North America same-restaurant sales increased 0.6 percent in the first quarter of both 2014 and 2013. The primary reason for the differential between company-operated and franchise same-restaurant sales is a higher number of Image Activation company-operated restaurants in operation, Brolick said.

The Wendy's system completed or initiated more than 200 Image Activation reimages of company-operated and franchise-operated restaurants in 2013 and expects to nearly double the pace in 2014, with the reimaging of 200 company-operated restaurants and 150 to 200 franchise-operated restaurants.

Wendy's expects 15 new company-operated Image Activation restaurants and 45 new franchise-operated Image Activation restaurants in 2014. The target is to have the Image Activation design in 85 percent of its company-operated restaurants and 35 percent of the North America system by the end of 2017.

Also, Wendy's implementation of mobile payments is starting to resonate with millennial customers, Brolick said.