Two new exterior designs will be under construction in the next30 days, but a completely new prototype is a while off. The companyhas prepared a small building design, a square design and islooking at drive-throughs.

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"[Drive-throughs] continue to be an opportunity for us as wemove forward, but we have not done a tremendous amount of work interms of really driving an initiative towards an entirely newprototype building," said Dave Near, COO. "That may be somethingthat we look at towards the latter half of the year."

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The strategic review process, announced in April 2007, has takenlonger than expected due to the turmoil in the stock markets, thecompany said last week. That delay is slowing the conversion ofcompany-owned units to franchises as potential franchisees seekcertainty.

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"We continue to believe that refranchising a number of ourrestaurants and reducing the company stores is the right thing todo," said Kerrii Anderson, CEO and president. "We had talked aboutrefranchising up to 400 stores in 2008, but [now] we probablywouldn't get more than half of those done, if we startedtomorrow."

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For the quarter, revenues were $596.0, million down 0.1% fromthe previous year. Net income from continuing operations was $14.1million, up 364.7% from the previous year. Same-store sales at U.S.franchise restaurants increased 0.2%, and declined 0.8% at U.S.company-operated restaurants.

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For the year, worldwide revenues were $2.45 billion, up 0.4%from the previous year. Net income was $87.9 billion, down 6.8%from the previous year. Annual same-store sales at U.S. franchiserestaurants increased 1.4%; annual same-store sales at U.S.company-operated restaurants increased 0.9%. During the year, thecompany opened 92 restaurants and closed 120 restaurants.

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