Fastfood company Wendy's International has reported a fall in net income for the second quarter ended 3 July 2005. Although total revenue was up, same store sales at Wendy's suffered from the 'finger in the chilli' incident.

Total revenue was $951 million, compared to $909 million in the second quarter of 2004. Net income was $70.8m, compared with $71.6m in the year earlier period.

Same-store sales were very strong at Tim Hortons, but declined at Wendy's and Baja Fresh Mexican Grill. Wendy's faced strong 2004 comparatives, and sales continued to be impacted by negative publicity related to the consumer fraud incident that took place earlier this year at one of its restaurants in San Jose, the company said.

"Tim Hortons continues to produce outstanding results, while Wendy's has encountered sales and cost challenges in the first half," said chairman and CEO Jack Schuessler. "The results at Baja Fresh are beginning to show the improvement we expected to see this year, which is encouraging."

The company and its franchisees opened 74 new restaurants during the quarter. The openings consisted of 46 Wendy's, 23 Tim Hortons and 5 Baja Fresh restaurants.