Wendy's International, Inc.
 
 

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Wendy's International, Inc. Announces Strong Third-Quarter
Same-Store Sales Results
Wendy's Produces Highest Comps since 2Q 2004;
YTD Same-Store Sales at Company Restaurants Turn Positive

Contacts:
John Barker:
(614) 764-3044
john_barker@wendys.com

David Poplar
(614) 764-3547
david_poplar@wendys.com

DUBLIN, Ohio (October 5, 2006) – Wendy’s International, Inc. (NYSE: WEN) today announced preliminary same-store sales of 4.1% at U.S. company stores and 3.9% at U.S. franchised restaurants for its third quarter, which ended on Sunday, October 1.

“Our third quarter represents the best same-store sales period for Wendy’s in two years, as July and August same-store sales were encouraging, and September was strong at 4.3%” said interim Chief Executive Officer and President Kerrii Anderson. “With this performance, our year-to-date same-store sales at company restaurants have turned positive, which is another sign that our turnaround is well under way.

“We also continue to see improvement on the cost side, as we have taken the steps necessary to reduce expenses by $100 million beginning in 2007, and beef and chicken costs are lower compared to one year ago.”

In July, Wendy’s promoted its signature Spicy Chicken sandwich and tested a new 4-Alarm Spicy Chicken sandwich in certain markets. In August, Wendy’s introduced a new vanilla Frosty™ dessert. In September, Wendy’s promoted its new Frescata™ Italiana premium deli sandwich.

In the fourth quarter, Wendy’s will promote its value menu and new double-melt hamburgers and will introduce re-loadable gift cards for the first time.

“Our strong promotional calendar and new product innovation have been the driving forces behind our recent sales momentum,” Anderson said.

In addition, the Company announced in August that all 6,000 of its Wendy’s U.S. restaurants are now cooking with oil that has zero grams of trans fat per serving. With the move, Wendy’s became the first major quick-service restaurant chain to switch to non-hydrogenated cooking oil for its French fries and chicken products.

“The elimination of trans fat was a big milestone for us,” Anderson said. “We have made our food healthier without altering its taste profile, which is the right thing to do for our customers.”

Wendy’s completes distribution of Tim Hortons shares

As announced on September 29, Wendy’s International, Inc. has completed the distribution of the 160 million shares of Tim Hortons that it previously owned. The shares represented the remaining 82.75% stake in Tim Hortons that the Company had owned subsequent to Tim Hortons March initial public offering.      

Wendy’s International, Inc. to host analyst meeting October 12

Wendy’s International, Inc. plans to host a meeting for analysts and investors to discuss its strategic plan, operations, marketing and financial outlook on Thursday, October 12, 2006, from 9:30 a.m. to approximately noon EST.  The meeting, which will be available simultaneously as a conference call and webcast, will be held at the Ritz-Carlton New York, Battery Park Hotel, Two West Street, New York, 10004; (212) 344-0800. The doors will open at 9 a.m.

Interested parties can participate in the meeting in any one of three ways:

  • Attend in person at the Ritz-Carlton New York, Battery Park Hotel: RSVP to Karren Martin-Huth at (614) 764-3138 or karren_martin-huth@wendys.com by Friday, October 6. 
  • Via simultaneous conference call:  The dial-in number is (877) 572-6014 (North America) or (706) 679-4852 (outside of North America). No need to register in advance.
  • A simultaneous web cast will be available at www.wendys-invest.com; the call will be archived at that site.

Third-quarter earnings release scheduled for October 26

The Company will release third-quarter earnings at approximately 2:00 p.m. on Thursday, October 26 and host a conference call beginning at 4:00 p.m. (Eastern) the same day. Investors and the public may participate in the conference call in either one of the following ways:

  • Phone Call: The dial-in number is (877) 572-6014 (U.S. and Canada) or (706) 679-4852 (International).  No need to register in advance.
  • Simultaneous Web Cast: Available at www.wendys-invest.com. The call will also be archived at that site.

Preliminary Third-Quarter Same-Store Sales Summary

 

  3Q 2006

  3Q 2005

  2006 YTD

Wendy’s U.S. Company

4.1%

(5.0%)

          0.0%

Wendy’s U.S. Franchise

3.9%

(5.5%)

(0.1%)

Tim Hortons Canada

5.9%

  3.6%

  6.8%

Tim Hortons U.S.

9.2%

  4.7%

   9.1%

Baja Fresh System

(6.1%)

(4.1%)

(5.1%)

Monthly Same-Store Sales Summary for July, August, and September

 

July 2006

July 2005

August 2006

August 2005

September 2006

September 2005

Wendy’s U.S. Company

  3.6%

(5.4%)

  4.7%

(5.2%)

     4.3%

   (4.3%)

Wendy’s U.S. Franchise

  3.2%

(5.2%)

  4.5%

(6.5%)

     4.2%

    (4.9%)

Tim Hortons Canada

  4.8%

  4.0%

  5.6%

  3.4%

     7.6%

   3.5%

Tim Hortons U.S.

  8.2%

  4.1%

 10.1%

  5.3%

     9.6%

   4.8%

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 most successful restaurant operating and franchising companies, with full ownership positions in its flagship brand, Wendy's Old Fashioned Hamburgers, as well as Baja Fresh® Mexican Grill. The Company also has investments in two other quality brands, Cafe Express and Pasta Pomodoro®. More information about the Company is available at www.wendys-invest.com.

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