Industry News | February 12, 2001

Wendy's Announces Key Financial Goals for 2001

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Wendy's International, Inc. (NYSE: WEN) announced today during a meeting with analysts, investors and the media its major financial goals for the year 2001. Highlights included:

• Revenue growth in the 8.0% to 10.0% range.

• Same-store sales growth at Wendy's® U.S. company restaurants in the 3.0% to 3.5% range, which is in line with the chain's 10-year average.

• Same-store sales growth at Tim Hortons® restaurants in Canada in a range of 5.0% to 6.0%.

• Unit development of 515 to 555 new restaurants systemwide.

• Productivity enhancing initiatives at Wendy's restaurants, which are intended to offset rising costs for certain food items and restaurant crew wages.

• General and administrative costs, as a percent of revenues, lower than the 9.3% reported in 2000.

• A corporate tax rate of 37.0%, down from 37.5% in 2000.

• Continuing repurchase of common shares. The company has purchased $491 million in common shares since 1998.

• Earnings per share growth in the 12-15% range.

• Ongoing improvement in return on invested capital, return on equity and return on assets. Since launching its strategic initiatives in 1998, the company has improved returns significantly (the following chart excludes non-recurring charges):

January 2001 sales results

The company also announced today its sales results for January (Period 1
ended on February 4):
• Same-store sales increased 1.2% at Wendy's U.S. company units, on top
of a 1.5% increase a year ago and an 8.6% increase during the same
period in 1999.

• Same-store sales at Tim Hortons in Canada increased 10.6%, on top of a
10.5% increase a year ago. Same-store sales at Tim Hortons U.S. grew
8.4% in January.

Wendy's sales were affected by difficult winter weather conditions in key company operated markets. The January 2001 period included the New Year's holiday, while the same period a year ago did not include the holiday.

 

News and information presented in this release has not been corroborated by QSR, Food News Media, or Journalistic, Inc.