Wendy’s International, Inc. announces 2006 second-quarter results
- Revenues increased 8.3% to $1.0 billion
- Reported net loss was $29.1 million
- Company announces pre-tax charges for Baja Fresh of $122.5 million ($93.0 million after tax) and severance related to restructuring
DUBLIN , Ohio ( July 27, 2006 ) – Wendy’s International, Inc. (NYSE: WEN) today announced its financial results for the second quarter 2006.
Total revenues increased 8.3% to $1.0 billion.
The Company’s second-quarter pretax loss was $26.0 million compared to pretax income of $106.7 million in 2005. Reported net loss was $29.1 million compared to net income of $70.8 million in the second quarter of 2005. The Company reported a net loss per share of $0.25 compared to diluted EPS of $0.61 in the second quarter of 2005.
Charges significantly affected earnings in the 2006 second quarter (see “second-quarter results” below for more information), including goodwill, other intangible and fixed asset impairment charges for Baja Fresh Ò Mexican Grill , as well as voluntary early retirement costs, severance expenses and consulting fees, among others.
Excluding the Baja Fresh after tax impairment charges of $93.0 million, net income would have been $63.8 million or $0.54 per share, based on fully diluted shares of 117.8 million (see “Baja Fresh statement” below).
“Our reported second-quarter results for the overall company were lower than expected, primarily due to factors unrelated to the performance of our core Wendy’s and Tim Hortons ® businesses,” said interim Chief Executive Officer and President Kerrii Anderson.
“Excluding charges and costs for our restructuring initiatives, our core Wendy’s ® business is improving,” Anderson said. “During the second quarter Wendy’s produced the strongest same-store sales gains in the last seven quarters and food costs are improving. Wendy’s July same-store sales trends are even stronger and are running about 3.5%. Our leadership team, operators and franchisees are excited about the turnaround of our business, and we are optimistic that our momentum will continue into the third quarter. We have a strong lineup of new and promotional products in the pipeline.”
Tim Hortons also continued its strong momentum, exceeding expectations once again in its second quarter as a public company.
Wendy’s demonstrates progress with sales initiatives and cost-cutting measures
Wendy’s second-quarter sales initiatives included the April introduction of its new Frescata ™ deli sandwich line , which features h igh-quality deli meats, fre sh toppings and artisan bread.
During the second quarter Wendy’s also promoted its Late-Night business; its Fix n’ Mix Frosty™ , featuring the customer’s choice of M&M s ® , Butterfinger® or Oreo® toppings; Combo Choices, which offers consumers a choice of side items with the purchase of a sandwich; a revised combo sizing program with new options for drink sizes and sides; a new 99-cent chicken sandwich; and Wendy’s Kids’ Meal ® Choices program, featurin g two nutritious sandwiches and a low-fat yogurt and granola side option. Wendy’s announced in July that it will be introducing a v anilla Frosty at many locations throughout the U.S. , b eginning in August.
During the third quarter, Wendy’s is launching its new Frescata Italiana sandwich. Frescata Italiana is the fifth member of the Frescata sandwich line-up, and contains Sun dried Tomato Vinaigrette dressing, roasted red peppers, Swiss cheese, black forest ham, Genoa salami and Romaine lettuce. The Company will also be testing several new products during the third quarter, including the 4-Alarm Spicy Chicken Sandwich , “Big Dipper” wing-sized chicken fillets with dipping sauces, Chunky Chicken Salad Frescata and new Double Melt Cheeseburgers.
Wendy’s continues to make progress with its plan to reduce general and administrative and overhead costs by $100 million. The Company confirmed that it has eliminated 355 positions, which will account for the majority of the $100 million total savings. Of the 355 positions, approximately three-quarters were from the corporate office, with the remainder coming from the field offices. A significant number of positions were eliminated through a voluntary early retirement program and normal attrition.
Tim Hortons spin-off on track for October 1
Wendy’s announced in June that its Board of Directors has confirmed its intent to spin off the 160 million shares of Tim Hortons that it currently owns. The shares represent an 82.75% ownership stake in Tim Hortons.
Wendy’s is targeting October 1, 2006 , to complete the Tim Hortons spin-off, assuming it has received from the IRS a ruling on the tax-free status of the distribution before that time. The record date to determine the shareholders who will be entitled to the Tim Hortons shares at the time of distribution will be set by the Wendy’s Board of Directors in advance of the distribution date.
In preparation for the spin-off, Tim Hortons continues to build the infrastructure necessary to be a standalone public company. Tim Hortons has recently added resources in the Financial Reporting, Treasury, Corporate Governance and Securities Law areas. Tim Hortons expects to have in place sufficient internal resources in the areas it has historically shared with Wendy’s prior to the separation date.
Tim Hortons promoted its new caramel-themed baked goods during the second quarter , including caramel-chocolate donuts , caramel apple fritters, caramel streusel cakes and caramel turnovers in April.
Tim Hortons promoted iced cappuccino with “flavor shots” of butter caramel, French vanilla, hazelnut or raspberry during May . These flavor shots can also be added to other beverages. Through May and June, Tim Hortons introduced a new chunky chicken salad w r ap, and in June promoted strawberry-themed d esserts, featuring a strawberry tart.
During the third quarter, Tim Hortons will promote its flavored iced cappuccino and its toasted chicken club sandwich in both Canada and the U.S. The Company will also promote its 12-grain bagel in Canada and its chicken salad wraps in the U.S.
Second-quarter results
The 2006 second-quarter results for the Company include the impact of:
- Strong sales at Tim Hortons, both in Canada and the U.S.
- Slightly positive same-store sales at Wendy’s.
- Negative same-store sales at Baja Fresh Mexican Grill .
- A total of 69 new system-wide restaurants opened in the quarter, which is lower than initially planned, compared to 74 in the same period a year ago. Wendy’s opened 38 new units and Tim Hortons opened 30 new restaurants.
- The loss of approximately $4 million in pretax rental income due to the sale of Wendy’s properties during 2005 and 2006, which impacts the franchise revenue line.
- An improvement in Wendy’s food costs, including the system-wide cost for fresh ground beef, which averaged 6.3% lower compared to one year ago. This benefited pretax income by approximately $2 million compared to 2005.
- Incremental pretax advertising expense of $10 million for the Wendy’s brand. This impacts the operating costs line on the income statement.
- A $4.6 million reduction in expenses for health care claims, which impacted both the company restaurant operating costs and general and administrative expense lines.
- General and administrative (G&A) expenses of $81.6 million, or 7.9% of revenues, compared to $73.2 million, or 7.7% of revenues, in the second quarter of 2005. Impacting G&A was approximately $2 million in incremental pretax employee stock compensation expense, reflecting the acceleration of restricted stock unit awards for Tim Hortons employees leading up to the planned spin-off of Tim Hortons (in accordance with Statement of Financial Accounting Standards No. 123R – “Share-Based Payment”). G&A also included the impact of a stronger Canadian dollar and incremental administrative expenses at Tim Hortons as it prepares to become a standalone public company.
- Other expense of $28.3 million, compared to other income of $3.6 million in the second quarter of 2005. The increase primarily relates to the pretax impact of initiatives for the implementation of Wendy’s Combo Plan, including voluntary early retirement costs, severance expenses and consulting fees totaling $27.3 million.
- Higher pretax interest expense from the third-party debt entered into during the first quarter by Tim Hortons of approximately $4 million, more than offset by higher pretax interest income on proceeds from the Tim Hortons initial public offering (IPO) and new debt of about $11 million in late March.
- The loss of 17.25%, or $12.3 million, of the net income contribution from Tim Hortons following its IPO in late March.
- $122.5 million in pretax ($93.0 million after tax) non-cash goodwill, other intangible and fixed asset impairment charges for Baja Fresh, in accordance with SFAS No. 142 “Goodwill and Other Intangible Assets” and SFAS No. 144 “Accounting for the Impairment or Disposal of Long-Lived Assets.” The Company’s testing for impairment was not complete as of the date of this press release. Any adjustment to the charges will be included in the Company’s second-quarter Form 10-Q, and will represent management’s best estimates as of the end of the second quarter. The Company previously announced its intent to pursue strategic alternatives for its Baja Fresh business, and any future gain or loss will depend upon the selection of an alternative. The impairment charges reflect the continued declining sales and overall performance at Baja Fresh during the first half of 2006.
- The income tax provision reflects a benefit of approximately $11 million from the resolution of tax audits at Tim Hortons.
- Stronger Canadian currency ($1.12 vs. $1.24 in 2005), which benefited pretax income by approximately $9.6 million compared to 2005.
Third-quarter outlook
The Company expects its third-quarter beef price to improve on a system-wide basis by an average of 13.5% compared to the third quarter of 2005. Average beef costs for the first nine months of 2006 will be 7.8% lower than in the same period in 2005. The Company expects rising utility costs to partly offset the improvement in beef costs.
The Company anticipates that it will incur additional costs in the third quarter totaling $10 million to $15 million for a number of items including costs related to the spin-off transaction, voluntary early retirement costs, severance expenses and consulting fees.
Board approves 114 th consecutive dividend
The Board of Directors approved a quarterly dividend of $0.17 per share, payable on August 21 to shareholders of record as of August 7. The dividend will be the Company’s 114th consecutive dividend.
Second-quarter conference call and webcast scheduled for today, July 27
Tim Hortons management will host a conference call at 3:00 p.m. (Eastern) today, July 27 to discuss second quarter results, followed by Wendy’s management at 4:00 p.m. (Eastern). Investors and the public may listen to either or both conference calls in 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.
Second-Quarter Same-Store Sales Summary
|
2Q 2006
|
2Q 2005
|
2006 YTD
|
Wendy’s U.S. Company |
0.7% |
-4.6% |
-2.0% |
Wendy’s U.S. Franchise |
1.0% |
-3.9% |
-2.0% |
Tim Hortons Canada |
6.1% |
5.6% |
7.3% |
Tim Hortons U.S. |
8.4% |
9.1% |
9.1% |
Baja Fresh System |
-5.5% |
-1.7% |
-4.6% |
Monthly Same-Store Sales Summary for April*, May, and June
|
April 2006
|
April 2005
|
May 2006
|
May 2005
|
June 2006
|
June 2005
|
Wendy’s U.S. Company |
0.2% |
-5.8% |
-0.5% |
-4.0% |
2.5% |
-3.7% |
Wendy’s U.S. Franchise |
0.5% |
-5.5% |
-0.1% |
-2.9% |
2.8% |
-2.9% |
Tim Hortons Canada |
5.0% |
6.5% |
6.4% |
6.3% |
7.1% |
3.7% |
Tim Hortons U.S. |
5.6% |
11.5% |
10.0% |
9.0% |
10.1% |
6.2% |
* April sales results were impacted by an Easter shift, as the holiday was in the first quarter a year ago, but was in the second quarter this year.
Second-Quarter New Restaurant Openings
|
2Q 2006
|
2Q 2005
|
Wendy’s |
38 |
46 |
Tim Hortons |
30 |
23 |
Baja Fresh |
1 |
5 |
TOTAL |
69 |
74 |
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.
Baja Fresh statement
The company believes that presenting its net income and EPS results excluding the impact of the Baja Fresh impairment charges provides a more accurate view of its underlying operating performance.
Wendy’s International, Inc. overview
Wendy's International, Inc. is one of the world's largest restaurant operating and franchising companies with more than 9,900 total restaurants and quality brands, including Wendy's Old Fashioned Hamburgers Ò and Baja Fresh Mexican Grill. The Company also has investments in three additional quality brands – Tim Hortons, Cafe Express and Pasta Pomodoro Ò . More information about the Company is available at www.wendys-invest.com.
WENDY'S INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)
Second Quarter Ended
7/2/2006 7/3/2005 $ Change % Change
---------- --------- --------- ---------
REVENUES
Retail sales $825,620 $770,508 $55,112 7.2%
Franchise revenues 204,536 180,514 24,022 13.3%
---------- --------- --------- ---------
TOTAL REVENUES 1,030,156 951,022 79,134 8.3%
---------- --------- --------- ---------
COSTS & EXPENSES
Cost of sales 539,538 505,535 34,003 6.7%
Company restaurant operating
costs 174,354 172,623 1,731 1.0%
Operating costs 59,806 36,853 22,953 62.3%
Depreciation of property &
equipment 50,200 49,633 567 1.1%
General & administrative
expenses 81,602 73,221 8,381 11.4%
Baja Fresh impairment charges 122,482 0 122,482 n/m
Other (income) expense, net 28,258 (3,567) 31,825 n/m
---------- --------- --------- ---------
TOTAL COSTS & EXPENSES 1,056,240 834,298 221,942 26.6%
---------- --------- --------- ---------
OPERATING (LOSS) INCOME (26,084) 116,724 (142,808) -122.3%
Interest expense (14,767) (11,330) (3,437) -30.3%
Interest income 14,866 1,335 13,531 n/m
---------- --------- --------- ---------
(LOSS) INCOME BEFORE INCOME
TAXES AND MINORITY INTEREST (25,985) 106,729 (132,714) -124.3%
INCOME TAXES (9,186) 35,969 (45,155) n/m
Tim Hortons Inc. minority
interest 12,316 0 12,316 n/m
---------- --------- --------- ---------
NET (LOSS) INCOME ($29,115) $70,760 ($99,875) -141.1%
========== ========= ========= =========
Diluted earnings per common
share ($0.25) $0.61 ($0.86) -60.7%
========== ========= ========= =========
Diluted shares 116,861 116,632 229 0.2%
========== ========= ========= =========
n/m - not meaningful
WENDY'S INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)
Year-to-Date Ended
7/2/2006 7/3/2005 $ Change % Change
----------- ----------- --------- ---------
REVENUES
Retail sales $1,579,367 $1,495,055 $84,312 5.6%
Franchise revenues 382,309 350,140 32,169 9.2%
----------- ----------- --------- ---------
TOTAL REVENUES 1,961,676 1,845,195 116,481 6.3%
----------- ----------- --------- ---------
COSTS & EXPENSES
Cost of sales 1,045,346 983,450 61,896 6.3%
Company restaurant
operating costs 350,067 342,293 7,774 2.3%
Operating costs 120,157 73,035 47,122 64.5%
Depreciation of property &
equipment 99,132 98,351 781 0.8%
General & administrative
expenses 164,086 149,065 15,021 10.1%
Baja Fresh impairment
charges 122,482 0 122,482 n/m
Other (income) expense, net 19,678 (7,535) 27,213 n/m
----------- ----------- --------- ---------
TOTAL COSTS & EXPENSES 1,920,948 1,638,659 282,289 17.2%
----------- ----------- --------- ---------
OPERATING INCOME 40,728 206,536 (165,808) -80.3%
Interest expense (27,366) (22,864) (4,502) -19.7%
Interest income 19,004 2,524 16,480 n/m
----------- ----------- --------- ---------
INCOME BEFORE INCOME TAXES
AND MINORITY INTEREST 32,366 186,196 (153,830) -82.6%
INCOME TAXES (2,532) 64,180 (66,712) n/m
Tim Hortons Inc. minority
interest 12,781 0 12,781 n/m
----------- ----------- --------- ---------
NET INCOME $22,117 $122,016 ($99,899) -81.9%
=========== =========== ========= =========
Diluted earnings per common
share $0.19 $1.06 ($0.87) -35.8%
=========== =========== ========= =========
Diluted shares 117,082 115,612 1,470 1.3%
=========== =========== ========= =========
n/m - not meaningful
WENDY'S INTERNATIONAL, INC. AND SUBSIDIARIES
REVENUES BY SEGMENT
Increase
(Decrease)
(in thousands): Second Quarter Ended From Prior Year
--------------------------------- ------------------
July 2, % of July 3, % of
2006 Total 2005 Total Dollars Percentage
----------------- --------------- ------------------
Retail Sales
-----------------
Wendy's $542,281 65.7% $537,825 69.8% $4,456 0.8%
Tim Hortons 234,107 28.3% 180,493 23.4% 53,614 29.7%
Developing
Brands(a) 49,232 6.0% 52,190 6.8% (2,958) -5.7%
----------- --------- --------
$825,620 100.0% $770,508 100.0% $55,112 7.2%
=========== ========= ========
Franchise
Revenues
-----------------
Wendy's $76,342 37.3% $77,312 42.8% ($970) -1.3%
Tim Hortons 126,264 61.7% 101,002 56.0% 25,262 25.0%
Developing
Brands(a) 1,930 1.0% 2,200 1.2% (270) -12.3%
----------- --------- --------
$204,536 100.0% $180,514 100.0% $24,022 13.3%
=========== ========= ========
Total Revenues
-----------------
Wendy's $618,623 60.0% $615,137 64.7% $3,486 0.6%
Tim Hortons 360,371 35.0% 281,495 29.6% 78,876 28.0%
Developing
Brands(a) 51,162 5.0% 54,390 5.7% (3,228) -5.9%
----------- --------- --------
$1,030,156 100.0% $951,022 100.0% $79,134 8.3%
=========== ========= ========
(a) Developing Brands include Baja Fresh and Cafe Express.
(in Increase (Decrease)
thousands): Year-to-Date Ended From Prior Year
----------------------------------- -------------------
July 2, % of July 3, % of
2006 Total 2005 Total Dollars Percentage
----------------- ----------------- -------------------
Retail Sales
--------------
Wendy's $1,041,512 65.9% $1,051,859 70.4% ($10,347) -1.0%
Tim Hortons 442,307 28.0% 342,637 22.9% 99,670 29.1%
Developing
Brands(a) 95,548 6.1% 100,559 6.7% (5,011) -5.0%
----------- ----------- ---------
$1,579,367 100.0% $1,495,055 100.0% $84,312 5.6%
=========== =========== =========
Franchise
Revenues
--------------
Wendy's $141,584 37.0% $152,144 43.5% ($10,560) -6.9%
Tim Hortons 237,087 62.0% 193,747 55.3% 43,340 22.4%
Developing
Brands(a) 3,638 1.0% 4,249 1.2% (611) -14.4%
----------- ----------- ---------
$382,309 100.0% $350,140 100.0% $32,169 9.2%
=========== =========== =========
Total Revenues
--------------
Wendy's $1,183,096 60.3% $1,204,003 65.2% ($20,907) -1.7%
Tim Hortons 679,394 34.6% 536,384 29.1% 143,010 26.7%
Developing
Brands(a) 99,186 5.1% 104,808 5.7% (5,622) -5.4%
----------- ----------- ---------
$1,961,676 100.0% $1,845,195 100.0% $116,481 6.3%
=========== =========== =========
(a) Developing Brands include Baja Fresh and Cafe Express.
WENDY'S INTERNATIONAL, INC. AND SUBSIDIARIES
OPERATING INCOME BY SEGMENT
(in
thousands): Second Quarter Ended Change
----------------------------------- --------------------
July 2, % of July 3, % of
2006 Revenues 2005 Revenues Dollars Percentage
----------------- ----------------- --------------------
Operating
Income (Loss)
--------------
Wendy's $51,217 8.3% $57,430 9.3% ($6,213) -10.8%
Tim Hortons 93,512 25.9% 76,587 27.2% 16,925 22.1%
Developing
Brands(a) (124,296) -242.9% (1,160) -2.1% (123,136) n/m
--------- --------- ----------
Segment
operating
income $20,433 2.0% $132,857 14.0% ($112,424) -84.6%
Corporate
charges(b) (46,517) (16,133) (30,384)
--------- --------- ----------
Operating
income ($26,084) -2.5% $116,724 12.3% ($142,808) -122.3%
========= ========= ==========
(a) Developing Brands include Baja Fresh and Cafe Express. Second
quarter 2006 includes impairment charges of $122,482.
(b) Corporate charges include certain overhead costs which are not
allocated to individual segments.
n/m - not meaningful
(in
thousands): Year-to-Date Ended Change
----------------------------------- --------------------
July 2, % of July 3, % of
2006 Revenues 2005 Revenues Dollars Percentage
----------------- ----------------- --------------------
Operating
Income (Loss)
--------------
Wendy's $62,999 5.3% $101,368 8.4% ($38,369) -37.9%
Tim Hortons 169,466 24.9% 139,131 25.9% 30,335 21.8%
Developing
Brands(a) (128,762) -129.8% (4,615) -4.4% (124,147) n/m
--------- --------- ----------
Segment
operating
income $103,703 5.3% $235,884 12.8% ($132,181) -56.0%
Corporate
charges(b) (62,975) (29,348) (33,627)
--------- --------- ----------
Operating
income $40,728 2.1% $206,536 11.2% ($165,808) -80.3%
========= ========= ==========
(a) Developing Brands include Baja Fresh and Cafe Express. 2006
includes impairment charges of $122,482.
(b) Corporate charges include certain overhead costs which are not
allocated to individual segments.
n/m - not meaningful
WENDY'S INTERNATIONAL, INC. AND SUBSIDIARIES
SYSTEMWIDE RESTAURANTS
Increase/ Increase/
As of As of (Decrease) As of (Decrease)
July 2, April 2, From Prior July 3, From Prior
2006 2006 Quarter 2005 Year
Wendy's --------------------------------------------------
-------
U.S.
Company 1,322 1,313 9 1,340 (18)
Franchise 4,693 4,704 (11) 4,652 41
--------------------------------------------------
6,015 6,017 (2) 5,992 23
Canada
Company 148 150 (2) 158 (10)
Franchise 233 230 3 226 7
--------------------------------------------------
381 380 1 384 (3)
Other International
Company 5 5 0 5 0
Franchise 342 343 (1) 346 (4)
--------------------------------------------------
347 348 (1) 351 (4)
Total Wendy's
Company 1,475 1,468 7 1,503 (28)
Franchise 5,268 5,277 (9) 5,224 44
--------------------------------------------------
6,743 6,745 (2) 6,727 16
==================================================
Tim Hortons
-----------
U.S.
Company 62 63 (1) 67 (5)
Franchise 235 229 6 197 38
--------------------------------------------------
297 292 5 264 33
Canada
Company 40 35 5 32 8
Franchise 2,585 2,576 9 2,459 126
--------------------------------------------------
2,625 2,611 14 2,491 134
Total Tim Hortons
Company 102 98 4 99 3
Franchise 2,820 2,805 15 2,656 164
--------------------------------------------------
2,922 2,903 19 2,755 167
==================================================
Baja Fresh
----------
U.S.
Company 143 143 0 146 (3)
Franchise 155 156 (1) 157 (2)
--------------------------------------------------
Total Baja Fresh 298 299 (1) 303 (5)
==================================================
Cafe Express
------------
U.S.
Company 19 19 0 19 0
--------------------------------------------------
Total Cafe Express 19 19 0 19 0
==================================================
Total System
Company 1,739 1,728 11 1,767 (28)
Franchise 8,243 8,238 5 8,037 206
--------------------------------------------------
9,982 9,966 16 9,804 178
==================================================
WENDY'S INTERNATIONAL, INC.
Income Statement Definitions
Retail Sales Includes sales from company operated restaurants.
Also included are the sales to franchisees from
Wendy's bun baking facilities, and sales to
franchisees from Tim Hortons' coffee roaster and
distribution warehouses.
Franchise Revenues Consists primarily of royalties, rental income
and franchise fees. Franchise fees include
charges for various costs and expenses related
to establishing a franchisee's business, and
include initial equipment packages for the
Hortons' franchises.
Cost of Sales Includes food, paper and labor costs for
restaurants. Also included are the cost of
goods sold to franchisees from Wendy's bun
baking facilities, and Tim Hortons' coffee
roaster and distribution warehouses.
Company Restaurant Consists of all costs necessary to manage and
Operating Costs operate restaurants, except cost of sales and
depreciation. These include advertising,
insurance, maintenance, rent, etc., as well as
support costs for personnel directly related to
restaurant operations.
Operating Costs Includes rent expense related to properties
leased to franchisees, and cost of equipment
sold to franchisees as part of the initiation of
the franchise business. Training and other
costs necessary to ensure a successful Hortons'
franchise opening and costs to operate and
maintain the Tim Hortons' distribution
warehouses, Tim Hortons' coffee roaster and
Wendy's bun baking facilities are also include
in operating costs.
General and Costs that cannot be directly related to
Administrative generating revenue.
Expenses
Other Income and Includes expenses (income) that are not directly
Expense derived from the Company's primary businesses.
This includes income from the Company's
investments in joint ventures and other minority
investments. Expenses include store closures,
other asset write-offs and restructuring costs.
###
|
