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Wendy's International, Inc. Announces 2nd Quarter Same-Store Sales
Company Produces 13 Consecutive Months of Positive
Same-Store Sales Results
as Turnaround of the Brand Continues
DUBLIN, Ohio -- July 6, 2007 -- Wendy's International, Inc. (NYSE:WEN) today announced preliminary same-store sales for the second quarter of 2007, which ended on Sunday, July 1.
Average same-store sales at U.S. company restaurants increased 0.7% for the period, while average same-store sales at U.S. franchise restaurants increased 0.4%.
"We've now delivered 13 consecutive months of positive same-store sales," said Chief Executive Officer and President Kerrii Anderson. "We built on positive sales a year ago and lapped our highest unit volumes of 2006 in June. Our menu management strategy, new products, and improving marketing and restaurant operations have enabled us to continue our momentum.
"Second-quarter same-store sales growth was not as strong as the first quarter as we continue to execute our market-based pricing strategy. We believe this is impacting transactions in the short term, but will position us to produce profit expansion in the future."
Wendy's featuring innovative, high-quality products
In the third quarter, Wendy's® will begin promoting its new Baconator™. This premium hamburger is a mountain of mouth-watering taste that's made to order from fresh, never frozen, beef. The Baconator features six strips of hickory smoked bacon on top of a 1/2 lb. of hot, juicy beef with American cheese, ketchup and mayonnaise.
In June, the Company rolled out its new $1.99 Triple Stack cheeseburger, which features three stacks of fresh, never frozen, beef layered with melted American cheese.
In May, Wendy's began promoting its new Frosty™ Float - a cool, creamy chocolate or vanilla Frosty served with ice-cold root beer, Coca-Cola® or other soft drink. In addition, the Company announced in May that it will offer Wendy's Custom Bean™, a proprietary blend of Folgers Gourmet Selections™ coffee, as an important component of its beverage strategy and as a centerpiece of its new breakfast menu. During May, Wendy's also introduced its new 99-cent Buffalo Crispy Chicken sandwich, which features tender all-white meat chicken seasoned with authentic Buffalo wing spices.
Wendy's in April promoted its Steakhouse Double-Melt cheeseburgers, which feature two hot, juicy patties of fresh, never frozen, beef packed with a melted middle of caramelized onions, mushrooms, creamy Swiss cheese, peppercorn sauce and three strips of bacon served on a Kaiser bun.
Preliminary 2nd Quarter Same-Store Sales Summary
2Q 2007 2Q 2006 2007 YTD
-------------------------------- ------------- ----------- -----------
U.S. Company 0.7% 0.7% 2.2%
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U.S. Franchise 0.4% 1.0% 2.0%
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Monthly Same-Store Sales Summary for April, May and June
Apr 2007 Apr 2006 May 2007 May 2006 June 2007 June 2006
-------------- -------- -------- -------- -------- --------- ---------
U.S. Company 0.6% 0.2% 0.9% (0.5%) 0.6% 2.5%
-------------- -------- -------- -------- -------- --------- ---------
U.S. Franchise 0.5% 0.5% 0.5% (0.1%) 0.0% 2.8%
-------------- -------- -------- -------- -------- --------- ---------
Company plans 2nd Quarter Disclosure
Management plans to release its 2007 2nd quarter results before the market opens on July 26, 2007. A conference call and webcast to discuss the Company's results will be held at 4:00 p.m. ET on July 26, 2007. The dial-in number is (877) 572-6014 (U.S. and Canada) or (706) 679-4852 (International). A simultaneous webcast will also be available at www.wendys-invest.com. The call will also be archived at that site.
Safe Harbor statement
Certain information in this news release, particularly information regarding future economic performance and finances, and plans, expectations and objectives of management, is forward looking. Factors set forth in our Safe Harbor under the Private Securities Litigation Reform Act of 1995, in addition to other possible factors not listed, could affect the Company's actual results and cause such results to differ materially from those expressed in forward-looking statements. Please review the Company's Safe Harbor statement at http://www.wendys-invest.com/safeharbor.
Wendy's International, Inc. overview
Wendy's International, Inc. is one of the world's largest and most successful restaurant operating and franchising companies.
Wendy's recently received brand, food and operations accolades
from:
- Zagat Survey®, a leading global provider of consumer survey
content, which recently named Wendy's as having the best
hamburgers in the quick-service restaurant industry. In
addition, Wendy's ranked first among quick-service "mega-chains" (i.e., those with at least 5,000 outlets) for
food, facilities and popularity.
- This year's American Customer Satisfaction Index (ACSI)
survey, produced by the University of Michigan's Stephen M.
Ross Business School, ranked Wendy's in the top spot for
customer satisfaction in the "limited service restaurants" category.
- QSR® Magazine's 2007 Consumer Survey recently rated Wendy's
as consumers' favorite quick-service restaurant (QSR) for the
second-straight year.
More information about the Company is available at www.wendys-invest.com.
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