Wendy's International, Inc. Announces Second-Quarter Same-Store Sales
Sales positive at company-operated and franchise restaurants
July 10, 2008 // Franchising.com // DUBLIN, Ohio – Wendy's International, Inc. (NYSE: WEN) today announced preliminary average same-store sales for the second quarter of 2008, which ended on Sunday, June 29.
Average same-store sales at U.S. company-operated restaurants increased 0.1% during the quarter, compared to a 0.7% increase during the same quarter a year ago. Average same-store sales at U.S. franchise restaurants increased 1.1% during the quarter, compared to an increase of 0.4% during the same quarter a year ago.
"We are encouraged that sales trends improved compared to the previous two quarters and were positive for the period, especially at franchise restaurants which represent 84% of our system. It is important to drive sales momentum in the second half of the year as we expect continued pressures from escalating commodity costs, a weakened economy and a challenging competitive environment" said Chief Executive Officer and President Kerrii Anderson.
"As we focus on growing sales and profits at every Wendy's® restaurant, our value platform will continue to evolve to meet the needs of today's price-sensitive consumers," added Anderson. "In addition, we will leverage Wendy's quality position with premium products, including our latest menu addition featuring a warm chicken fillet on our outstanding entrée salads."
The Company faced a calendar shift with the Easter holiday falling in the first quarter of 2008 (March 21-23), opposed to the second quarter a year ago (April 6-8). This positively impacted same-store sales at company-operated restaurants by an estimated 0.3% during the quarter.
Quality is what Wendy's does best
Wendy's recently re-launched its premium salad lineup with national advertising, featuring the transition from cold chicken to a warm chicken fillet available in three varieties – Grilled, Homestyle, or Spicy – on its entrée salads. The Company also introduced a new line of premium, Marzetti® salad dressings that are all-natural with no preservatives. Light or fat free options are available. In addition, Wendy's has reduced the sodium level in each of its salad dressings by about 10 to 15 percent compared to previous options.
In June, the Company introduced its new Frosty® Shakes, which are hand-spun in three flavors: Vanilla Bean, Chocolate Fudge and Strawberry. The shakes highlight Wendy's commitment to quality, using syrups made from real vanilla beans, five kinds of cocoa and real strawberries.
Also during the quarter, Wendy's launched its new Chicken Go Wraps, featuring a center-cut, chicken breast fillet – available Grilled, Homestyle , or Spicy – with cheddar cheese, fresh lettuce and Ranch or Honey Mustard sauce wrapped in a warm flour tortilla.
In addition, Wendy's introduced for a limited-time its popular Southwest Chicken Caesar salad, featuring seasoned chicken, corn, black beans and grape tomatoes served on freshly-chopped Romaine lettuce – garnished with shredded natural Parmesan cheese, garlic croutons and a zesty Southwest Caesar dressing.
Preliminary Second-Quarter Average Same-Store Sales Summary
2Q 2008 2Q 2007
U.S. Company 0.1% 0.7%
U.S. Franchise 1.1% 0.4%
Monthly Average Same-Store Sales Summary for April, May and June
Apr 2008 Apr 2007 May 2008 May 2007 Jun 2008 Jun 2007
U.S. Company 0.2% 0.6% -0.7% 0.9% 0.7% 0.6%
U.S. Franchise 1.1% 0.5% 0.4% 0.5% 2.0% 0.0%
Company plans second-quarter disclosure
The Company plans to release its 2008 second-quarter results on Tuesday, August 5, the same day that Triarc Companies, Inc. (Arby's) plans to release its earnings. Due to the execution of the definitive merger agreement between Wendy's and Triarc, which was announced on April 24, 2008, management does not plan to hold a conference call to discuss second-quarter results.
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 received brand, food and operations accolades from:
- Zagat Survey®, a leading global provider of consumer survey content, which 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.
- QSR® Magazine's 2007 Consumer Survey recently rated Wendy's as consumers' favorite quick-service restaurant (QSR) for the second-straight year.
- Speedy service earned Wendy's the top spot for fastest drive-thru times once again, according to QSR Magazine's 2007 Drive-Thru Study.
More information about the Company is available at www.wendys-invest.com.
In connection with the proposed merger, Triarc filed a Registration Statement on Form S-4 on June 2, 2008 with the SEC (Registration No. 333-151336) that includes a preliminary joint proxy statement of Triarc and Wendy's and that also constitutes a preliminary prospectus of Triarc. Before making any voting decision, Triarc and Wendy's urge investors and security holders to read the definitive joint proxy statement/final prospectus regarding the proposed merger when it becomes available because it will contain important information. Triarc and Wendy's each will mail the definitive proxy statement/final prospectus to its stockholders. You may obtain copies of all documents filed with the SEC regarding this transaction, free of charge, at the SEC's website (www.sec.gov). You may also obtain these documents, free of charge, from Triarc's website (www.triarc.com ) under the heading "Investor Relations" and then under the item "SEC Filings and Annual Reports." You may also obtain these documents, free of charge, from Wendy's website (www.wendys.com) under the tab "Investors" and then under the heading "SEC Filings."
Triarc, Wendy's and their respective directors, executive officers and certain other members of management and employees may be soliciting proxies from Triarc and Wendy's stockholders in favor of the stockholder approvals required in connection with the merger. Information regarding the persons who may, under the rules of the SEC, be considered participants in the solicitation of the Triarc and Wendy's stockholders in connection with the stockholder approvals required in connection with the proposed merger is set forth in the proxy statement/prospectus contained in the above-referenced Registration Statement on Form S-4. You can find information about Triarc's executive officers and directors in its Amendment No. 2 to its Form 10-K filed with the SEC on April 25, 2008. You can find information about Wendy's executive officers and directors in its Amendment No. 1 to its Form 10-K filed with the SEC on April 28, 2008. Additional information about Triarc's executive officers and directors and Wendy's executive officers and directors can be found in the above-referenced Registration Statement on Form S-4. You can obtain free copies of these documents from Triarc and Wendy's using the contact information above.