Wendy’s Reports Positive Preliminary 2012 Second Quarter Same-Store Sales
Reaffirms Outlook for Adjusted EBITDA from Continuing Operations of $320 million to $335
Company to Highlight Image Activation, Other Initiatives at June 28 Investor Day
June 27, 2012 - DUBLIN, Ohio – The Wendy’s Company (NASDAQ: WEN) today reported positive preliminary same-store sales for the second quarter of fiscal 2012 and reaffirmed its 2012 outlook for adjusted EBITDA from continuing operations in advance of its June 28 Investor Day.
For the second quarter ending July 1, 2012, the Company expects to report a same-store sales increase of approximately 3.0 percent for Wendy’s® North America Company-operated restaurants. This will be the fifth consecutive quarter of positive same-store sales at Company-operated restaurants.
Based on results to date, the Company is reaffirming its 2012 outlook for Adjusted EBITDA from continuing operations in a range of $320 million to $335 million. The outlook for Adjusted EBITDA from continuing operations excludes items such as anticipated debt extinguishment costs, as well as relocation costs and other expenses from the consolidation of the Atlanta restaurant support center with the Dublin, Ohio restaurant support center.
The Company continues to target an average annual Adjusted EBITDA growth rate in the high-single-digit to low-double-digit range beginning in 2013.
President and Chief Executive Officer Emil Brolick said: “We produced our fifth consecutive quarter of positive same-store sales, with exciting new products that we introduced under our ‘A Cut Above’ brand positioning, including our Spicy Guacamole Chicken Club sandwich and premium Signature Sides. We supported these product introductions with our new advertising campaign, featuring two different consumer advocates and the tag line ‘Now That’s Better™,’ which has generated a very encouraging consumer reaction in a short period of time.”
Company to Host Investor Day June 28
The Company is hosting an Investor Day beginning at 8:30 a.m. tomorrow, with presentations and slides webcast live from the investor relations section of Company’s website at www.aboutwendys.com. The webcast and accompanying slides will be available on the Company’s website after the presentation.
Same-store Sales Reporting Methodology
As previously announced on May 8, the Company has revised its reporting methodology for same-store sales to more accurately reflect comparable sales performance, including the impact of its new and reimaged restaurants. Using the new methodology, the Company calculates Wendy’s same-store sales beginning after new restaurants have been open for at least 15 continuous months and after reimaged restaurants have been reopened for three continuous months. The calculation of same-store sales previously began after a restaurant had been open for at least 15 continuous months and as of the beginning of the previous fiscal year. Under the old methodology, the expected same-store sales increase for the second quarter of 2012 would have been approximately 2.8 percent.
The new methodology has virtually no impact on previously reported same-store sales results prior to 2012.