The Wall Street Journal-20080205-Earnings Digest -- Restaurants- Wendy-s International Inc-

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Earnings Digest -- Restaurants: Wendy's International Inc.

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Wendy's International Inc.'s fourth-quarter profit was sharply higher from a year earlier, when it posted charges, but sales flagged and higher commodity costs hurt results. The Dublin, Ohio, hamburger chain, which has been weighing a possible sale for nearly a year, issued a cautionary forecast, citing the higher costs and "consumer nervousness about the economy." Wendy's said it plans to raise prices 3% to 4% in company-owned restaurants early this year as it expects beef prices to go up 3% to 4% this year and chicken prices to rise as much as 5% to 8%. Executives yesterday didn't discuss progress by the committee that is studying whether to sell the company or take other actions. Credit-market turmoil has driven away some suitors, with investor activist Nelson Peltz submitting a bid lower than originally indicated. Wendy's sales slumped as 2007 came to a close. Its shares fell $1.25, or 5%, to $23.93 in 4 p.m. composite trading on the New York Stock Exchange yesterday.