Wendy’s International, Inc. (NYSE: WEN) announced September 6 strong trends in its core businesses and preliminary sales results for Period 8, which ended on September 3. At Wendy’s(R) company operated restaurants in the United States, same- store sales grew by 4.6% in Period 8, on top of a 7.2% increase a year ago. Same-store sales were up more than 3% year to date. At Tim Hortons(R) restaurants in Canada, same-store sales grew by 7% to 8% in Period 8, on top of a 12.7% increase a year ago. Same-store sales were up more than 9% year to date.
At Tim Hortons in the United States, same-store sales were up 10.5% in Period 8. “We continue to build sales volumes at both brands on top of outstanding results a year ago,” said Jack Schuessler, chief executive officer and president. “Wendy’s same-store sales growth is on track for the year and Tim Hortons continues to perform above our expectations.”
The sales performance at both brands is attributable to a systemwide commitment to excellent restaurant operations and quality products. “We continue to roll out and implement our successful Service Excellence(R) program across the system and our late night program continues to grow,” said Tom Mueller, president and chief operating officer of Wendy’s North America. “Our Mozzarella Chicken Supreme(TM) promotional sandwich did extremely well in August. Customer feedback was outstanding.”
Tim Hortons continued to produce excellent results during the summer with strong sales of its iced cappuccino drink and a successful Timbits(R) bite-sized donut promotion. The company reported that new restaurant development is on track for the year. Management recently raised its goal for earnings per share growth (excluding asset gains) to a range of 14% to 17% in 2000. Base EPS was $1.26 in 1999.
The company plans to publish third quarter results on November 2. Wendy’s International, Inc. is one of the world’s largest restaurant operating and franchising companies, with $7.1 billion in 1999 systemwide sales and two quality brands — Wendy’s and Tim Hortons. Wendy’s Old Fashioned Hamburgers(R) was founded in 1969 by Dave Thomas and is the third largest quick-service hamburger chain in the world with more than 5,600 restaurants in the United States, Canada and international markets. Tim Hortons was founded in 1964 by Tim Horton and Ron Joyce and is the largest coffee and fresh baked goods chain in Canada. There are more than 1,750 restaurants in Canada and nearly 115 in the U.S.
