Wendy's Announces Strong and Improved 2007 Third-Quarter Results as Turnaround of the Business Continues




    Excluding expenses related to the Board's Special Committee and
restructuring charges:

    --  Income from continuing operations increased 55.0% to $38.6 million,
up from $24.9 million a year ago

    --  Diluted EPS from continuing operations were $0.44, a 110% increase
compared to $0.21 a year ago

    --  Total EBITDA from continuing operations increased 57.5% to $95.0
million, up from $60.3 million a year ago

    Management expects to produce 2007 full-year EBITDA and EPS near the
higher end of the guidance range, reflecting improving margins and cost
controls

    DUBLIN, OHIO, October 25 /CNW/ - Wendy's International, Inc. (NYSE:  WEN)
today announced strong financial results for the third quarter of 2007,
reflecting the continuing turnaround of the business, significantly improving
restaurant margins and cost controls.

    Including third-quarter pre-tax expenses related to the Board's Special
Committee of $13.4 and $2.4 million of pre-tax restructuring charges (as used
throughout, restructuring charges include pension settlement charges), the
Company reported income from continuing operations of $28.8 million and
diluted EPS of $0.33 in the third quarter of 2007, compared to $23.7 million
and $0.20 per share in the third quarter of 2006. Earnings before interest,
taxes, depreciation and amortization (EBITDA) from continuing operations were
$79.2 million in the third quarter of 2007, up 35.8% from $58.3 million in the
third quarter of 2006.

    Excluding expenses related to the Board's Special Committee and
restructuring charges, the Company reported for the third quarter of 2007
adjusted income from continuing operations of $38.6 million and diluted
earnings per share of $0.44, compared to $24.9 million and $0.21 per share in
the third quarter of 2006. Excluding expenses related to the Board's Special
Committee and restructuring charges, adjusted EBITDA for the third quarter
2007 was $95.0 million, up 57.3% from $60.3 million in the third quarter of
2006.

    
                       Including expenses         Excluding expenses(a)
                   -------------------------------------------------------
                      3Q 2007       3Q 2006       3Q 2007       3Q 2006
    ----------------------------------------------------------------------
    Income from
     continuing
     operations    $28.8 million $23.7 million $38.6 million $24.9 million
    ----------------------------------------------------------------------
    Diluted EPS
     from
     continuing
     operations    $0.33         $0.20         $0.44         $0.21
    ----------------------------------------------------------------------
    EBITDA from
     continuing
     operations    $79.2 million $58.3 million $95.0 million $60.3 million
    ----------------------------------------------------------------------
    

    (a) Excluding expenses related to the Board's Special Committee and
restructuring charges. See reconciliations below.

    Margins increased significantly during quarter with the U.S. up 330 basis
points

    Company-operated restaurant EBITDA margins improved 270 basis points to
12.4% in the third quarter of 2007, compared to 9.7% one year ago. This
includes U.S., Canada and International operations.

    U.S. company-operated restaurant EBITDA margins improved 330 basis points
to 12.6% in the third quarter of 2007, reflecting positive sales, including
menu price increases tied to the Company's market-based pricing strategy and
labor efficiencies. Without the impact of higher commodity costs,
third-quarter U.S. company-operated restaurant EBITDA margins would have
improved an additional 140 basis points to 14.0%.

    "We continue to execute our strategic plan and delivered significantly
improved results this quarter at both the corporate and store level despite a
very tough competitive environment and commodity cost pressures," said
Wendy's(R) Chief Executive Officer and President Kerrii Anderson.

    "Our EBITDA growth is encouraging and store operating margins continue to
expand," said Anderson. "We're revitalizing Wendy's with a focus on connecting
with the consumer, new products, more effective menu management, our
market-based pricing strategy, breakthrough advertising and improving
operations. That said, we have even greater opportunities to better meet the
needs of our customers, grow same-store sales and further increase margins."

    Management expects to produce 2007 full-year EBITDA near the higher end
of the guidance range, which was $295 million to $315 million

    The Company expects to report 2007 full-year EBITDA near the higher end
of the outlook it provided to investors in June, which was a range of $295
million to $315 million. It also expects to report full-year EPS near the high
end of the range provided earlier, which was $1.09 to $1.23. These ranges
exclude expenses related to the Board's Special Committee activities and
restructuring charges.

    "Our progress on key elements of our business since June has been
positive," Anderson said. "We are focused on building on this momentum in the
fourth quarter and 2008."

    Wendy's to feature Combo Choices and Jalapeno Cheddar Double Melt in
fourth quarter

    Wendy's is currently promoting its Combo Choices, allowing customers to
mix-and-match their favorite sandwich, drink and choice of a side item -
fries, chili, baked potato, side salad or Caesar side salad. In November, the
Company will promote its Jalapeno Cheddar Double Melt premium hamburger.

    "We are focused on driving same-store sales and transactions by improving
our connection to the customer," said Chief Marketing Officer Ian Rowden. "The
Jalapeno Cheddar Double Melt offers a unique way for customers to enjoy a 'hot
'n juicy' hamburger with toppings melted in the middle of two, 'fresh, never
frozen', beef patties. Customers can't get this at the competition.

    "In addition, for a limited time, customers can get a free music download
when they upgrade a Jalapeno Cheddar Double Melt or any other sandwich to a
Medium or Large Wendy's Combo Meal. We want to keep adding value so customers
choose Wendy's more often."

    Wendy's continues the roll-out of its new breakfast menu, now in more
than 850 restaurants, of which 35% are franchise locations.

    The Company's "Red Wig" marketing campaign made great strides in the
third quarter and continues to break through with targeted younger customers
who frequent quick-service restaurants. Of consumers who were aware of Wendy's
advertising, nearly 25% recalled the "Red Wig" character top of mind, up from
4% recall in the prior quarter. In addition, Ameritest's Ad Appraiser, a
leading advertising effectiveness syndicated provider, shows that Wendy's
advertising ranks higher than key competitors based on attention, branding and
motivation.

    "We continue to re-stage our brand and cut through the clutter to reach
consumers in a very engaging way," said Rowden. "The work from our team and
Saatchi & Saatchi has been bold and it is resonating with younger consumers.
The campaign reflects the optimistic heritage of the Wendy's brand and
consumers find it appealing. Our goal is to build further awareness and
encourage customers to visit Wendy's more often."

    Third Quarter Highlights

    --  Wendy's produced its 5th consecutive quarter of positive same-store
sales.

    --  Average same-store sales at U.S. company-operated restaurants
increased 0.2% for the quarter, compared to 4.1% during the same quarter a
year ago. Year-to-date average same-store sales at U.S. company-operated
restaurants are up 1.5%.

    --  Average same-store sales at U.S. franchise restaurants increased 1.3%
for the quarter, compared to 3.9% during the same quarter a year ago.
Year-to-date average same-store sales at U.S. franchise restaurants are up
1.8%.

    --  The Company's two-year sales trends continue to improve, and have
averaged more than 4% for the past four months.

    --  The Company and its franchisees opened a total of 25 new Wendy's
restaurants during the quarter. The openings consisted of five
company-operated restaurant and 20 franchised restaurants. The total number of
systemwide Wendy's restaurants at the end of the third quarter in 2007 was
6,633, compared to 6,673 at year-end 2006 and 6,741 at the end of the third
quarter in 2006, reflecting closures of underperforming restaurants.

    Wendy's third-quarter promotions featured the new Baconator(TM)

    In July, Wendy's introduced its latest premium hamburger, the Baconator.
The Baconator features a half-pound of fresh, never frozen beef, six strips of
hickory-smoked bacon, topped with American cheese, ketchup and mayonnaise.

    Wendy's in August introduced limited-time offerings at the local-market
level, including its Chicken Cordon Bleu, Monterey Ranch, and Wendy Melt
premium sandwiches.

    In September, the Company promoted its Super Value Menu(R), featuring its
Junior Bacon Cheeseburger and all-white meat 5-piece Crispy Chicken Nuggets,
both quality-favorites among younger, price-sensitive consumers.

    Third Quarter Financial and Income Statement Information

    The Company' third-quarter 2007 reported results from continuing
operations include the impact of:

    --  Sales - $554.8 million in the third quarter of 2007, compared to
$556.7 million in the third quarter of 2006. Sales increased slightly as a
result of positive average same-store sales, however Wendy's had 42 fewer
company-operated restaurants open at the end of the third quarter of 2007
compared to the same quarter a year ago.

    --  Franchise revenues - $76.3 million in the third quarter of 2007,
compared to $73.4 million in the third quarter of 2006. The 2007 increase
reflects positive franchisee average same-store sales, higher 2007 gains on
the sales of stores to franchisees of $0.9 million and lower 2007 reserve
allowances. Partially offsetting these improvements, Wendy's had 66 fewer
franchise-operated restaurants open at the end of the third quarter of 2007
compared to the same quarter a year ago.

    --  Total revenues - $631.1 million in the quarter of 2007, up 0.2%
compared to $630.1 million in the third quarter of 2006.

    --  Cost of sales - $334.9 million in the third quarter of 2007, compared
to $345.8 million in the third quarter of 2006, which was a 170 basis point
improvement as a percentage of sales. The year-over-year improvement is due
primarily to higher menu pricing tied to the Company's market-based pricing
strategy and improved menu management.

    --  Company restaurant operating costs - $148.6 million, or 26.8% of
sales, in the third quarter of 2007, compared to $155.3 million, or 27.9% of
sales, in the third quarter of 2006. The year-over-year improvement as a
percent of sales includes lower expenses as a result of the Company's 2006
cost saving initiatives and other lower store operating costs, including lower
utility, bonus and insurance costs. These improvements were partially offset
by the change in accounting for the real estate joint venture with Tim
Hortons(R) (see below). As a result of this change in accounting, third
quarter 2007 company restaurant operating costs included rental expense paid
to the joint venture by Wendy's, which prior to the spin-off of Tim Hortons,
eliminated in consolidation. Without this change in accounting for the joint
venture, reported third quarter 2007 Company-operated restaurant EBITDA
margins would have been 30 basis points higher.

    --  Operating costs - $6.3 million in the third quarter of 2007, compared
to $8.3 million in the third quarter of 2006. The year-over-year decrease is
due primarily to a decline in rent expense as a result of the change in
accounting for Wendy's real estate joint venture with Tim Hortons, which is no
longer consolidated by the Company (see below).

    --  General and administrative expense - $49.3 million, or 7.8% of
revenue, in the third quarter of 2007, compared to $62.4 million, or 9.9% of
revenue, in the third quarter of 2006. The year-over-year improvement is due
primarily to a reduction in salaries and benefits as a result of the
elimination of positions in 2006, lower insurance costs of $6.4 million, and
control of costs throughout the organization.

    --  Restructuring costs - $2.4 million in the third quarter of 2007,
which includes $1.0 million in pension settlement charges. This compares to
$2.0 million in restructuring costs in the third quarter of 2006.

    --  Special Committee related charges - $13.4 million in the third
quarter of 2007 in expenses related to the Special Committee. These charges
did not occur in 2006.

    --  Other expense/income - $2.9 million of income in the third quarter of
2007, which includes $3.1 million in income from the Company's 50/50 joint
venture with Tim Hortons, and insurance gains partially offset by store
closure charges and other asset write-offs. In 2007, the joint venture is
accounted for under the equity method. Prior to the spin-off of Tim Hortons,
the joint venture was fully consolidated.

    --  Interest - The $1.5 million increase in interest expense in the third
quarter 2007 is primarily due to the sale of approximately 40% of the U.S.
royalty stream for a 14-month period entered into in the fourth quarter of
2006 that was recorded as debt. The $11.7 million decrease in interest income
reflects a reduction in cash balances as a result of the completion of a
modified "Dutch Auction" tender offer in the fourth quarter of 2006, using
approximately $800 million, and the completion of an accelerated share
repurchase in the first quarter of 2007 for approximately $280 million.

    --  Taxes - The Company's effective tax rate was 34% in the third quarter
of 2007 and 26.5% in the third quarter of 2006.

    --  Shares outstanding - A lower share count of 88.4 million average
shares in the third quarter of 2007, compared to 118.3 million average shares
in the third quarter of 2006. The Company repurchased 22.4 million shares in a
modified "Dutch Auction" tender offer in the fourth quarter of 2006, and
repurchased 9.0 million shares in an accelerated share repurchase in the first
quarter of 2007.

    --  Joint venture with Tim Hortons - As a result of its 2006 spinoff of
Tim Hortons, the Company, in accordance with generally accepted accounting
principles (GAAP), now accounts for its 50% share of the restaurant real
estate joint venture with Tim Hortons (Wendy's and Tim Hortons' combination
units) under the equity method of accounting, rather than consolidating the
results of the joint venture in the Company's financial statements. Without
this change, company-operated restaurant EBITDA margins would have been 12.7%
during the third quarter of 2007. This change in accounting for the Company's
joint venture with Tim Hortons impacts several lines on the Company's
statement of income and resulted in an overall reduction to third-quarter 2007
operating income of $2.1 million compared to the third quarter 2006.

    --  Discontinued operations - Wendy's completed its spinoff of Tim
Hortons in the third quarter of 2006 and completed the sale of Baja Fresh(R)
Mexican Grill during the fourth quarter of 2006. During the third quarter of
2007, the Company completed the sale of Cafe Express. Accordingly, the
after-tax operating results of Tim Hortons, Baja Fresh and Cafe Express appear
in the "Discontinued Operations" line on the income statement.

    Board approves 119th consecutive dividend

    The Board of Directors approved a quarterly dividend of 12.5 cents per
share, payable November 19 to shareholders of record as of November 5. The
dividend payment will represent the Company's 119th consecutive dividend.

    Company plans third-quarter conference call for October 26

    The Company will hold a conference call and webcast to discuss the
Company's third quarter results at 8 a.m. ET on October 26. The dial-in number
is (877) 572-6014 (U.S. and Canada) or (706) 679-4852 (International). A
simultaneous webcast of the conference call will also be available at
www.wendys-invest.com. The call will also be archived at that site.

    Disclosure regarding non-GAAP financial measures

    The Company uses adjusted income from continuing operations as an
internal measure of operating performance. Management believes adjusted income
from continuing operations provides a meaningful perspective of the underlying
operating performance of the business.

    EBITDA is used by management as a performance measure for benchmarking
against its peers and competitors. The Company believes EBITDA is useful to
investors because it is frequently used by securities analysts, investors and
other interested parties to evaluate companies in the restaurant industry.
EBITDA is not a recognized term under GAAP.

    The Company also uses adjusted EBITDA, which accounts for certain items
unrelated to ongoing operations, as an internal measure of business operating
performance. Management believes adjusted EBITDA provides a meaningful
perspective of the underlying operating performance of the business.

    Company EBITDA margins from continuing operations consist of operating
income plus depreciation and amortization divided by revenue.

    Company-operated restaurant EBITDA margins consist of sales from
company-operated restaurants minus cost of sales from company-operated
restaurants minus company restaurant operating costs divided by sales from
company-operated restaurants.

    The following is a reconciliation of 2007 third-quarter income from
continuing operations to 2007 third-quarter adjusted income from continuing
operations.

    
    2007 3Q income from continuing operations                $28.8 million
    2007 3Q Special Committee expense, net of tax:
     (1)                                                     $8.3 million
    2007 3Q restructuring charges, net of tax: (1)           $1.5 million
    ----------------------------------------------------------------------
    2007 3Q adjusted income from continuing ops:             $38.6 million
                                                             -------------

    2007 3Q Diluted shares                                    88.4 million
    2007 3Q adjusted diluted EPS from continuing ops         $        0.44
    

    The following is a reconciliation of 2006 third-quarter income from
continuing operations to 2006 third-quarter adjusted income from continuing
operations.

    
    2006 3Q income from continuing operations               $23.7 million
    2006 3Q restructuring charges, net of tax: (1)          $1.2 million
    ----------------------------------------------------------------------
    2007 3Q adjusted income from continuing ops:            $24.9 million
                                                            --------------

    2007 3Q Diluted shares                                   118.3 million
    2007 3Q adjusted diluted EPS from continuing ops        $         0.21
    

    The following is a reconciliation of 2007 estimated operating income to
2007 estimated EBITDA used to arrive at the Company's revised 2007 earnings
outlook previously announced. As previously announced, the following estimated
amounts exclude expenses related to the Special Committee activities, and any
potential restructuring charges.

    
    2007 estimated operating
     income:                       $ 186 million to $206 million
    2007 estimated depreciation
     and amortization:             $ 109 million
    ----------------------------------------------------------------------
    2007 estimated adjusted EBITDA
     from continuing ops:          $ 295 million to $315 million
    

    The following is a reconciliation of 2007 third-quarter operating income
to 2007 third-quarter EBITDA and adjusted EBITDA on a basis consistent with
the Company's above revised full year 2007 outlook:

    
    2007 3Q operating income:                               $ 51.1 million
    2007 3Q depreciation and amortization:                  $ 28.1 million
    ----------------------------------------------------------------------
    2007 3Q EBITDA from continuing ops:                     $ 79.2 million
    2007 3Q Special Committee expense:                      $ 13.4 million
    2007 3Q restructuring charges:                           $ 2.4 million
    ----------------------------------------------------------------------
    2007 3Q adjusted EBITDA from continuing ops:            $ 95.0 million
    

    The following is a reconciliation of 2007 year-to-date operating income
to 2007 year-to-date EBITDA and adjusted EBITDA on a basis consistent with the
Company's above revised full year 2007 outlook:

    
    2007 YTD operating income:                             $ 135.4 million
    2007 YTD depreciation and amortization:                 $ 85.5 million
    ----------------------------------------------------------------------
    2007 YTD EBITDA from continuing ops:                   $ 220.9 million
    2007 YTD Special Committee expense:                     $ 18.1 million
    2007 YTD restructuring charges:                          $ 9.4 million
    ----------------------------------------------------------------------
    2007 YTD adjusted EBITDA from continuing               $ 248.4 million
     ops:
    

    The following is a reconciliation of 2006 third-quarter operating income
to 2006 third-quarter EBITDA and adjusted EBITDA:

    
    2006 3Q operating income:                               $ 26.5 million
    2006 3Q depreciation and amortization:                  $ 31.8 million
    ----------------------------------------------------------------------
    2006 3Q EBITDA from continuing ops:                     $ 58.3 million
    2006 3Q restructuring charges:                           $ 2.0 million
    ----------------------------------------------------------------------
    2006 3Q adjusted EBITDA from continuing ops:            $ 60.3 million
    

    (1) After tax amounts for Special Committee costs and restructuring
charges are computed using a tax rate of 38%.

    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(R), 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(R) 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 again, according to QSR(R) Magazine's 2007 Drive-Thru Study.

    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)

                                Third Quarter Ended

                               9/30/2007  10/1/2006  $ Change    % Change
                               ---------- ---------- ---------   ---------

    REVENUES
    Sales                       $554,808   $556,681   ($1,873)       -0.3%
    Franchise revenues            76,339     73,427     2,912         4.0%
                               ---------- ---------- ---------   ---------
    TOTAL REVENUES               631,147    630,108     1,039         0.2%
                               ---------- ---------- ---------   ---------

    COSTS & EXPENSES
    Cost of sales                334,929    345,751   (10,822)       -3.1%
    Company restaurant
     operating costs             148,577    155,251    (6,674)       -4.3%
    Operating costs                6,323      8,323    (2,000)      -24.0%
    Depreciation of property &
     equipment                    27,989     31,515    (3,526)      -11.2%
    General & administrative
     expenses                     49,253     62,427   (13,174)      -21.1%
    Restructuring and special
     committee related charges    15,862      2,002    13,860         n/m
    Other (income) expense, net   (2,864)    (1,616)   (1,248)       77.2%
                               ---------- ---------- ---------   ---------
    TOTAL COSTS & EXPENSES       580,069    603,653   (23,584)       -3.9%
                               ---------- ---------- ---------   ---------

    OPERATING INCOME              51,078     26,455    24,623        93.1%

    Interest expense             (10,355)    (8,872)   (1,483)      -16.7%
    Interest income                2,891     14,632   (11,741)      -80.2%
                               ---------- ---------- ---------   ---------

    INCOME FROM CONTINUING
     OPERATIONS BEFORE
      INCOME TAXES                43,614     32,215    11,399        35.4%

    INCOME TAXES                  14,818      8,523     6,295        73.9%
                               ---------- ---------- ---------   ---------

    INCOME from continuing
     operations                  $28,796    $23,692    $5,104        21.5%

    INCOME from discontinued
     operations(1)                $1,114    $45,476  ($44,362)      -97.6%
                               ---------- ---------- ---------   ---------

    NET INCOME (1)               $29,910    $69,168  ($39,258)
                               ---------- ---------- ---------

    Diluted earnings per common
     share from continuing
     operations                    $0.33      $0.20     $0.13
                               ---------- ---------- ---------

    Diluted earnings per common
     share from discontinued
     operations(1)                 $0.01      $0.38    ($0.37)(1)
                               ---------- ---------- ---------

    Total diluted earnings per
     common share(1)               $0.34      $0.58    ($0.24)(1)
                               ---------- ---------- ---------

    Diluted shares                88,407    118,290
                               ---------- ----------


    n/m - not meaningful



    (1)Discontinued operations includes the results of Tim Hortons(R),
     which was spun-off in September 2006, Baja Fresh(R) Mexican Grill,
     which was sold in November 2006, and Cafe Express, which was sold in
     July 2007. Because these three businesses are no longer owned by
     Wendy's International, Inc., the Company believes including the
     results of these businesses in a comparison of results between years
     does not provide a reasonable comparison of ongoing business results
     between years. In particular, income from discontinued operations and
     net income for the third quarter and year-to-date 2006 included $42.4
     million and $159.8 million of income, respectively, from Tim
     Hortons(R) prior to its spin-off in September 2006.
    

    
                 WENDY'S INTERNATIONAL, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF INCOME
                    (In thousands, except per share data)

                                   (Unaudited)

                                    Year-to-Date Ended

                             9/30/2007   10/1/2006   $ Change    % Change
                             ----------- ----------- ---------   ---------

    REVENUES
    Sales                    $1,636,064  $1,627,887    $8,177         0.5%
    Franchise revenues          218,159     215,012     3,147         1.5%
                             ----------- ----------- ---------   ---------
    TOTAL REVENUES            1,854,223   1,842,899    11,324         0.6%
                             ----------- ----------- ---------   ---------

    COSTS & EXPENSES
    Cost of sales               996,167   1,021,278   (25,111)       -2.5%
    Company restaurant
     operating costs            453,370     452,781       589         0.1%
    Operating costs              15,110      42,497   (27,387)      -64.4%
    Depreciation of property
     & equipment                 84,790      94,199    (9,409)      -10.0%
    General & administrative
     expenses                   151,466     170,162   (18,696)      -11.0%
    Restructuring and special
     committee related
     charges                     27,498      31,000    (3,502)      -11.3%
    Other (income) expense,
     net                         (9,557)     (7,516)   (2,041)       27.2%
                             ----------- ----------- ---------   ---------
    TOTAL COSTS & EXPENSES    1,718,844   1,804,401   (85,557)       -4.7%
                             ----------- ----------- ---------   ---------

    OPERATING INCOME            135,379      38,498    96,881       251.7%

    Interest expense            (33,460)    (26,753)   (6,707)      -25.1%
    Interest income              10,858      27,654   (16,796)      -60.7%
                             ----------- ----------- ---------   ---------

    INCOME FROM CONTINUING
     OPERATIONS BEFORE
      INCOME TAXES              112,777      39,399    73,378       186.2%

    INCOME TAXES                 40,218      12,302    27,916         n/m
                             ----------- ----------- ---------   ---------

    INCOME from discontinued
     operations(1)              $72,559     $27,097   $45,462       167.8%

    INCOME from discontinued
     operations                  $1,271     $64,188  ($62,917)      -98.0%
                             ----------- ----------- ---------   ---------

    NET INCOME (1)              $73,830     $91,285  ($17,455)
                             ----------- ----------- ---------

    Diluted earnings per
     common share from
     continuing operations        $0.80       $0.23     $0.57
                             ----------- ----------- ---------

    Diluted earnings per
     common share from
     discontinued
     operations(1)                $0.01       $0.55    ($0.54)(1)
                             ----------- ----------- ---------

    Total diluted earnings
     per common share(1)          $0.81       $0.78     $0.03 (1)
                             ----------- ----------- ---------

    Diluted shares               90,809     117,485
                             ----------- -----------


    n/m - not meaningful



    (1)Discontinued operations includes the results of Tim Hortons(R),
     which was spun-off in September 2006, Baja Fresh(R) Mexican Grill,
     which was sold in November 2006, and Cafe Express, which was sold in
     July 2007. Because these three businesses are no longer owned by
     Wendy's International, Inc., the Company believes including the
     results of these businesses in a comparison of results between years
     does not provide a reasonable comparison of ongoing business results
     between years. In particular, income from discontinued operations and
     net income for the third quarter and year-to-date 2006 included $42.4
     million and $159.8 million of income, respectively, from Tim
     Hortons(R) prior to its spin-off in September 2006.
    

    
                 WENDY'S INTERNATIONAL, INC. AND SUBSIDIARIES
                         CONSOLIDATED BALANCE SHEETS


                                                September 30, December 31,
                                                    2007         2006
                                                ------------- ------------
                                                       (Unaudited)
                                                  (Dollars in thousands)

    ASSETS

    Current assets
      Cash and cash equivalents                     $240,175     $457,614
      Accounts receivable, net                        88,376       84,841
      Deferred income taxes                           13,229       29,651
      Inventories and other                           26,904       30,252
      Advertising fund restricted assets              45,446       36,207
      Assets held for disposition                     11,635       15,455
      Current assets of discontinued operations            0        2,712
                                                ------------- ------------
                                                     425,765      656,732
                                                ------------- ------------

    Property and equipment                         2,088,064    2,024,715
      Accumulated depreciation                      (860,245)    (798,387)
                                                ------------- ------------
                                                   1,227,819    1,226,328
                                                ------------- ------------


    Goodwill                                          85,863       85,353

    Deferred income taxes                              5,786        4,316

    Intangible assets, net                             3,172        3,855

    Other assets                                      85,959       82,738

    Non current assets of discontinued
     operations                                            0        1,025
                                                ------------- ------------
                                                  $1,834,364   $2,060,347
                                                ------------- ------------
    

    
                 WENDY'S INTERNATIONAL, INC. AND SUBSIDIARIES
                         CONSOLIDATED BALANCE SHEETS


                                                September 30, December 31,
                                                    2007         2006
                                                ------------- ------------
                                                       (Unaudited)
                                                  (Dollars in thousands)


    LIABILITIES AND SHAREHOLDERS' EQUITY

    Current liabilities
      Accounts payable                               $89,502      $93,465
      Accrued expenses:
       Salaries and wages                             34,288       47,329
       Taxes                                          41,063       46,138
       Insurance                                      60,509       57,353
       Other                                          54,027       32,199
      Advertising fund restricted liabilities         45,446       28,568
      Current portion of long-term obligations        43,216       87,396
      Current liabilities of discontinued
       operations                                          0        2,218
                                                ------------- ------------
                                                     368,051      394,666
                                                ------------- ------------
    Long-term obligations
      Term debt                                      521,302      537,139
      Capital leases                                  18,799       18,963
                                                ------------- ------------
                                                     540,101      556,102
                                                ------------- ------------

    Deferred income taxes                             50,514       30,220
    Other long-term liabilities                       77,439       66,163
    Non current liabilities of discontinued
     operations                                            0        1,519


    Commitments and contingencies

    Shareholders' equity
      Preferred stock, Authorized: 250,000
       shares
      Common stock, $.10 stated value per share,
       Authorized: 200,000,000 shares,
       Issued: 130,220,000 and 129,548,000
        shares, respectively                          13,022       12,955
      Capital in excess of stated value            1,106,826    1,089,825
      Retained earnings                            1,285,114    1,241,489
      Accumulated other comprehensive income
       (expense):
       Cumulative translation adjustments and
        other                                         27,572        9,100
       Pension liability                             (17,097)     (22,546)
                                                ------------- ------------
                                                   2,415,437    2,330,823
    Treasury stock, at cost:
    42,844,000 and 33,844,000 shares,
     respectively                                 (1,617,178)  (1,319,146)
                                                ------------- ------------
                                                     798,259    1,011,677
                                                ------------- ------------
                                                  $1,834,364   $2,060,347
                                                ------------- ------------
    

    
                 WENDY'S INTERNATIONAL, INC. AND SUBSIDIARIES
                            SYSTEMWIDE RESTAURANTS


                          As of     As of  Increase/    As of   Increase/
                       September 30 July 1 (Decrease) October 1 (Decrease)
                                           From Prior           From Prior
                           2007      2007    Quarter    2006       Year
                       ---------------------------------------------------
    Wendy's
    -------------------
    U.S.
      Company                 1,288  1,297        (9)     1,320       (32)
      Franchise               4,644  4,661       (17)     4,692       (48)
                       ---------------------------------------------------
                              5,932  5,958       (26)     6,012       (80)
    Canada
      Company                   141    145        (4)       148        (7)
      Franchise                 235    231         4        231         4
                       ---------------------------------------------------
                                376    376         0        379        (3)
    Other International
      Company                     2      2         0          5        (3)
      Franchise                 323    325        (2)       345       (22)
                       ---------------------------------------------------
                                325    327        (2)       350       (25)

    Total Wendy's
      Company                 1,431  1,444       (13)     1,473       (42)
      Franchise               5,202  5,217       (15)     5,268       (66)
                       ---------------------------------------------------
                              6,633  6,661       (28)     6,741      (108)
                       ---------------------------------------------------
    

    
                         WENDY'S INTERNATIONAL, INC.
                         Income Statement Definitions

    Sales              Includes sales from company operated restaurants.
                        Also included are sales of kids' meal toys and the
                        sales to franchisees from Wendy's bun baking
                        facilities.

    Franchise Revenues Consists primarily of royalties, rental income,
                        gains from the sales of properties to franchisees
                        and franchise fees. Franchise fees include charges
                        for various costs and expenses related to
                        establishing a franchisee's business.

    Cost of Sales      Includes food, paper and labor costs for
                        restaurants. Also included are the cost of kids'
                        meal toys and cost of goods sold to franchisees
                        from Wendy's bun baking facilities.

    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 costs to operate and maintain
                        Wendy's bun baking facilities.

    General and        Costs that cannot be directly related to generating
     Administrative     revenue.
     Expenses

    Restructuring and  Includes restructuring costs and costs related to
     Special Committee  the Special Committee of the Board of Directors,
     Related Charges    which was formed to explore strategic alternatives
                        for the Company.

    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 sales of properties to
                        non-franchisees.

    Income from        Reflects net income from Tim Hortons Inc., Baja
     Discontinued       Fresh and Cafe Express.
     Operations

    

    MULTIMEDIA AVAILABLE:
http://www.businesswire.com/cgi-bin/mmg.cgi?eid=5528500




For further information:

For further information: Wendy's International, Inc. Investor Contacts:
John Barker, 614-764-3044 john_barker@wendys.com or Marsha Gordon,
614-764-3019 marsha_gordon@wendys.com or Kim Messner, 614-764-6796
kim_messner@wendys.com OR Media Contact: Denny Lynch, 614-764-3553
denny_lynch@wendys.com

Organization Profile

WENDY'S INTERNATIONAL, INC.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890