Every Employee and Franchisee to Focus on "Doing What's Right for
Wendy's 2008 Goals Are to Attract More Customers with Innovative, Quality
Products That Meet Customers Needs, Strengthen Wendy's Leadership in the QSR
Industry by Better Connecting with Consumers, and Continue Improving Profits
for All 6,600 Wendy's Restaurants
DUBLIN, OHIO, October 26 /CNW/ - One day after announcing strong results
that included its fifth consecutive quarter of positive same-store sales and a
330-basis point improvement in third quarter U.S. EBITDA store margins,
Wendy's International, Inc. (NYSE: WEN) today said it is launching Phase 2 of
its Strategic Growth Plan.
"We introduced our 'Wendy's(R) Recipe for Success' strategy one year ago
in October 2006 to focus on initiatives to revitalize the brand while growing
sales and profits in every restaurant in our system," said Chief Executive
Officer and President Kerrii Anderson. "We've made significant progress in the
past 12 months as a result of the initiatives implemented under the strategic
plan. The foundation of our business is stronger today thanks to the
performance of our restaurant crews, operators, franchisees, and field and
"That said, we have to step up our performance with innovation, change
and leveraging Wendy's competitive advantages. Our business and store
economics are still not where they need to be. We have much more to
accomplish," Anderson said.
"To drive our business, Wendy's leadership team has identified 10
imperatives for 2008 and beyond aimed at achieving improved results for every
restaurant in our system. The imperatives are focused on 'Doing What's Right
for our Customers'."
The 10 imperatives build on top of Wendy's "Recipe for Success," which is
focused on: Revitalizing the Wendy's Brand, Streamlining and Improving
Operations, Reclaiming Innovation Leadership, Strengthening Franchisee
Commitment, Capturing New Opportunities (eg. International growth), and
Embracing a Performance Driven Culture.
"Our strategic plan has a bold vision for Wendy's - customer-focused,
successful, more profitable in every restaurant and growing," said Anderson.
"We are committed to protecting and growing this great brand."
Seven of the strategic imperatives drive growth, and the final three
create efficiencies and improve returns.
-- Core Hamburger - Continue to improve Wendy's premium hamburger market
share by increasing consumer appeal and building transactions. Build on
Wendy's core strength with distinctive national advertising, by leveraging the
success of the Baconator(TM) and indulgent sandwiches, and by emphasizing the
brand's unique competitive advantage of "fresh, never frozen" beef.
-- Value Menu - Introduce an updated and effective Value strategy to
capture a growing share of the critical 18-34 year-old customer.
-- Beverages - Establish beverages as a "destination" as well as a meal
accompaniment. There are plans to expand several beverage programs.
-- Late Snack / Snacking - Re-energize Wendy's Late Night business and
capture afternoon and evening snack opportunities. Introduce innovative
products that will appeal to the "Snacking" heavy users.
-- Breakfast - Continue to leverage the Wendy's brand and optimize our
facilities by offering a new day-part to consumers who exhibit a demand for a
better, high-quality breakfast. This imperative meets consumer needs in the
fast-growing breakfast market, and improves store margins.
-- Customer Service - Introduce a "Total Customer Feedback System" for
improved customer service.
-- Reinvestment - Re-image restaurants by using a systematic capital
reinvestment process and disciplined approach. Reinvesting is critical to
meeting consumer needs and driving long-term sales improvement.
-- People Quality - Further elevate the customer experience by improving
the hiring and retention of Wendy's employees while reducing turnover,
improving training, and generating savings at the store level.
-- Re-franchising - Improve the overall health of Wendy's system by
re-franchising, as well as acquiring and re-imaging franchise restaurants with
potential for future re-franchising.
-- Store Margins - Leave no stone unturned to achieve store margin
"We are in the second phase of our turnaround. The base was built over
the past year and now we are implementing imperatives with a knowledgeable
team that has more experience, rich data and information about our industry,
understands our challenges and respects the special Wendy's culture
established by Founder Dave Thomas," said Anderson. "Dave was the original
change agent and continually pushed the Wendy's business to succeed. That's
what we are doing to deliver greater value for our customers, shareholders,
franchisees and employees."
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
-- 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.
For further information:
For further information: Wendy's International, Inc. Investor Contacts:
John Barker, 614-764-3044 firstname.lastname@example.org or Marsha Gordon,
614-764-3019 email@example.com or Kim Messner, 614-764-6796
firstname.lastname@example.org OR Media Contact: Denny Lynch, 614-764-3553