Wendy's Reports Improving U.S. Sales Performance

Tim Hortons sales up 10% in March



Apr 02, 2001, 01:00 ET from Wendy's International, Inc.

    DUBLIN, Ohio, April 2 /PRNewswire/ -- Wendy's International, Inc.
 (NYSE:   WEN) announced today its preliminary sales results for March
 (Period 3), which ended on April 1, 2001.
 
     * At Wendy's(R) company operated restaurants in the United States, same-
       store sales grew by about 2.6% in March, on top of a 5.4% increase in
       the same quarter a year ago.  It was the best monthly sales performance
       of the year for Wendy's.
     * At Tim Hortons(R) restaurants in Canada, same-store sales in March were
       up about 10%, on top of a 9.5% increase in the same period a year ago.
       At Tim Hortons restaurants in the U.S., same-store sales were up about
       8% in March on top of a 12.8% increase in the same period a year ago.
 
     "Wendy's sales trends are improving and Tim Hortons continues to deliver
 results that are better than expected," said Jack Schuessler, chief executive
 officer and president.  "We are optimistic about continuing to produce sales
 growth due to our systemwide focus on restaurant operations and quality
 products.  At Wendy's, we have an excellent promotional sandwich coming up
 with national advertising and we expect our late night sales to continue
 growing this summer."
     Company management is participating in the Banc of America Securities
 Consumer Conference on April 2 at the Palace Hotel, 455 Madison Ave., New
 York.  The Company's presentation is scheduled at 3:30 p.m. and will be web
 cast on the Internet at:
 http://www.veracast.com/bas_consumer2001/webcasts/id721041121.cfm .
 
     Wendy's International, Inc. is one of the world's largest restaurant
 operating and franchising companies, with $7.7 billion in 2000 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 nearly
 5,800 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 nearly 2,000 Tim
 Hortons restaurants of which more than 1,800 are in Canada.
 
 
     WENDY'S INTERNATIONAL, INC.
     Safe Harbor Under the Private Securities Litigation Reform Act of 1995
 
     The Private Securities Litigation Reform Act of 1995 (the "Act") provides
 a "safe harbor" for forward-looking statements to encourage companies to
 provide prospective information, so long as those statements are identified as
 forward-looking and are accompanied by meaningful cautionary statements
 identifying important factors that could cause actual results to differ
 materially from those discussed in the statement. Wendy's International, Inc.
 (the "Company") desires to take advantage of the "safe harbor" provisions of
 the Act.
 
     Certain information in this news release, particularly information
 regarding future economic performance and finances, and plans, expectations
 and objectives of management, is forward looking. The following factors, 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:
 
     Competition. The quick-service restaurant industry is intensely
 competitive with respect to price, service, location, personnel and type and
 quality of food. The Company and its franchisees compete with international,
 regional and local organizations primarily through the quality, variety and
 value perception of food products offered. The number and location of units,
 quality and speed of service, attractiveness of facilities, effectiveness of
 advertising and marketing programs, and new product development by the Company
 and its competitors are also important factors. The Company anticipates that
 intense competition will continue to focus on pricing. Certain of the
 Company's competitors have substantially larger marketing budgets.
 
     Economic, Market and Other Conditions. The quick-service restaurant
 industry is affected by changes in international, national, regional, and
 local economic conditions, consumer preferences and spending patterns,
 demographic trends, consumer perceptions of food safety, weather, traffic
 patterns and the type, number and location of competing restaurants. Factors
 such as inflation, food costs, labor and benefit costs, legal claims, and the
 availability of management and hourly employees also affect restaurant
 operations and administrative expenses. The ability of the Company and its
 franchisees to finance new restaurant development, improvements and additions
 to existing restaurants, and the acquisition of restaurants from, and sale of
 restaurants to franchisees is affected by economic conditions, including
 interest rates and other government policies impacting land and construction
 costs and the cost and availability of borrowed funds.
 
     Importance of Locations. The success of Company and franchised restaurants
 is dependent in substantial part on location. There can be no assurance that
 current locations will continue to be attractive, as demographic patterns
 change. It is possible the neighborhood or economic conditions where
 restaurants are located could decline in the future, thus resulting in
 potentially reduced sales in those locations.
 
     Government Regulation. The Company and its franchisees are subject to
 various federal, state, and local laws affecting their business. The
 development and operation of restaurants depend to a significant extent on the
 selection and acquisition of suitable sites, which are subject to zoning, land
 use, environmental, traffic, and other regulations. Restaurant operations are
 also subject to licensing and regulation by state and local departments
 relating to health, sanitation and safety standards, federal and state labor
 laws (including applicable minimum wage requirements, overtime, working and
 safety conditions, and citizenship requirements), federal and state laws which
 prohibit discrimination and other laws regulating the design and operation of
 facilities, such as the Americans with Disabilities Act of 1990. Changes in
 these laws and regulations, particularly increases in applicable minimum
 wages, may adversely affect financial results. The operation of the Company's
 franchisee system is also subject to regulation enacted by a number of states
 and rules promulgated by the Federal Trade Commission. The Company cannot
 predict the effect on its operations, particularly on its relationship with
 franchisees, of the future enactment of additional legislation regulating the
 franchise relationship.
 
     Growth Plans. The Company plans to increase the number of systemwide
 Wendy's and Tim Hortons restaurants open or under construction. There can be
 no assurance that the Company or its franchisees will be able to achieve
 growth objectives or that new restaurants opened or acquired will be
 profitable.
 
     The opening and success of restaurants depends on various factors,
 including the identification and availability of suitable and economically
 viable locations, sales levels at existing restaurants, the negotiation of
 acceptable lease or purchase terms for new locations, permitting and
 regulatory compliance, the ability to meet construction schedules, the
 financial and other development capabilities of franchisees, the ability of
 the Company to hire and train qualified management personnel, and general
 economic and business conditions.
 
     International Operations. The Company's business outside of the United
 States is subject to a number of additional factors, including international
 economic and political conditions, differing cultures and consumer
 preferences, currency regulations and fluctuations, diverse government
 regulations and tax systems, uncertain or differing interpretations of rights
 and obligations in connection with international franchise agreements and the
 collection of royalties from international franchisees, the availability and
 cost of land and construction costs, and the availability of experienced
 management, appropriate franchisees, and joint venture partners. Although the
 Company believes it has developed the support structure required for
 international growth, there is no assurance that such growth will occur or
 that international operations will be profitable.
 
     Disposition of Restaurants. The disposition of company operated
 restaurants to new or existing franchisees is part of the Company's strategy
 to develop the overall health of the system by acquiring restaurants from, and
 disposing of restaurants to, franchisees where prudent.  The realization of
 gains from future dispositions of restaurants depends in part on the ability
 of the Company to complete disposition transactions on acceptable terms.
 
 Transactions to Improve Return on Investment. The sale of real estate
 previously leased to franchisees is generally part of the program to improve
 the Company's return on invested capital.  There are various reasons why the
 program might be unsuccessful, including changes in economic, credit market,
 real estate market or other conditions, and the ability of the Company to
 complete sale transactions on acceptable terms and at or near the prices
 estimated as attainable by the Company.
 
 Joint Venture to Manufacture and Distribute Par-Baked Products for Tim Hortons
 Restaurants.  The success of the joint venture to manufacture and distribute
 par-baked products for Tim Hortons restaurants could be affected by a number
 of factors, including many of the factors set forth above.  In addition, the
 ability of the joint venture to acquire real estate and construct and equip a
 manufacturing plant on acceptable terms, the realization of expected levels of
 production efficiencies, and actual product distribution costs and costs
 incurred to equip Tim Hortons restaurants for par-baked products occurring
 within expected ranges, could affect actual results.
 
 
 Readers are cautioned not to place undue reliance on forward-looking
 statements, which speak only as of the date thereof.  The Company undertakes
 no obligation to publicly release any revisions to the forward-looking
 statements contained in this release, or to update them to reflect events or
 circumstances occurring after the date of this release, or to reflect the
 occurrence of unanticipated events.
 
 
 

SOURCE Wendy's International, Inc.
    DUBLIN, Ohio, April 2 /PRNewswire/ -- Wendy's International, Inc.
 (NYSE:   WEN) announced today its preliminary sales results for March
 (Period 3), which ended on April 1, 2001.
 
     * At Wendy's(R) company operated restaurants in the United States, same-
       store sales grew by about 2.6% in March, on top of a 5.4% increase in
       the same quarter a year ago.  It was the best monthly sales performance
       of the year for Wendy's.
     * At Tim Hortons(R) restaurants in Canada, same-store sales in March were
       up about 10%, on top of a 9.5% increase in the same period a year ago.
       At Tim Hortons restaurants in the U.S., same-store sales were up about
       8% in March on top of a 12.8% increase in the same period a year ago.
 
     "Wendy's sales trends are improving and Tim Hortons continues to deliver
 results that are better than expected," said Jack Schuessler, chief executive
 officer and president.  "We are optimistic about continuing to produce sales
 growth due to our systemwide focus on restaurant operations and quality
 products.  At Wendy's, we have an excellent promotional sandwich coming up
 with national advertising and we expect our late night sales to continue
 growing this summer."
     Company management is participating in the Banc of America Securities
 Consumer Conference on April 2 at the Palace Hotel, 455 Madison Ave., New
 York.  The Company's presentation is scheduled at 3:30 p.m. and will be web
 cast on the Internet at:
 http://www.veracast.com/bas_consumer2001/webcasts/id721041121.cfm .
 
     Wendy's International, Inc. is one of the world's largest restaurant
 operating and franchising companies, with $7.7 billion in 2000 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 nearly
 5,800 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 nearly 2,000 Tim
 Hortons restaurants of which more than 1,800 are in Canada.
 
 
     WENDY'S INTERNATIONAL, INC.
     Safe Harbor Under the Private Securities Litigation Reform Act of 1995
 
     The Private Securities Litigation Reform Act of 1995 (the "Act") provides
 a "safe harbor" for forward-looking statements to encourage companies to
 provide prospective information, so long as those statements are identified as
 forward-looking and are accompanied by meaningful cautionary statements
 identifying important factors that could cause actual results to differ
 materially from those discussed in the statement. Wendy's International, Inc.
 (the "Company") desires to take advantage of the "safe harbor" provisions of
 the Act.
 
     Certain information in this news release, particularly information
 regarding future economic performance and finances, and plans, expectations
 and objectives of management, is forward looking. The following factors, 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:
 
     Competition. The quick-service restaurant industry is intensely
 competitive with respect to price, service, location, personnel and type and
 quality of food. The Company and its franchisees compete with international,
 regional and local organizations primarily through the quality, variety and
 value perception of food products offered. The number and location of units,
 quality and speed of service, attractiveness of facilities, effectiveness of
 advertising and marketing programs, and new product development by the Company
 and its competitors are also important factors. The Company anticipates that
 intense competition will continue to focus on pricing. Certain of the
 Company's competitors have substantially larger marketing budgets.
 
     Economic, Market and Other Conditions. The quick-service restaurant
 industry is affected by changes in international, national, regional, and
 local economic conditions, consumer preferences and spending patterns,
 demographic trends, consumer perceptions of food safety, weather, traffic
 patterns and the type, number and location of competing restaurants. Factors
 such as inflation, food costs, labor and benefit costs, legal claims, and the
 availability of management and hourly employees also affect restaurant
 operations and administrative expenses. The ability of the Company and its
 franchisees to finance new restaurant development, improvements and additions
 to existing restaurants, and the acquisition of restaurants from, and sale of
 restaurants to franchisees is affected by economic conditions, including
 interest rates and other government policies impacting land and construction
 costs and the cost and availability of borrowed funds.
 
     Importance of Locations. The success of Company and franchised restaurants
 is dependent in substantial part on location. There can be no assurance that
 current locations will continue to be attractive, as demographic patterns
 change. It is possible the neighborhood or economic conditions where
 restaurants are located could decline in the future, thus resulting in
 potentially reduced sales in those locations.
 
     Government Regulation. The Company and its franchisees are subject to
 various federal, state, and local laws affecting their business. The
 development and operation of restaurants depend to a significant extent on the
 selection and acquisition of suitable sites, which are subject to zoning, land
 use, environmental, traffic, and other regulations. Restaurant operations are
 also subject to licensing and regulation by state and local departments
 relating to health, sanitation and safety standards, federal and state labor
 laws (including applicable minimum wage requirements, overtime, working and
 safety conditions, and citizenship requirements), federal and state laws which
 prohibit discrimination and other laws regulating the design and operation of
 facilities, such as the Americans with Disabilities Act of 1990. Changes in
 these laws and regulations, particularly increases in applicable minimum
 wages, may adversely affect financial results. The operation of the Company's
 franchisee system is also subject to regulation enacted by a number of states
 and rules promulgated by the Federal Trade Commission. The Company cannot
 predict the effect on its operations, particularly on its relationship with
 franchisees, of the future enactment of additional legislation regulating the
 franchise relationship.
 
     Growth Plans. The Company plans to increase the number of systemwide
 Wendy's and Tim Hortons restaurants open or under construction. There can be
 no assurance that the Company or its franchisees will be able to achieve
 growth objectives or that new restaurants opened or acquired will be
 profitable.
 
     The opening and success of restaurants depends on various factors,
 including the identification and availability of suitable and economically
 viable locations, sales levels at existing restaurants, the negotiation of
 acceptable lease or purchase terms for new locations, permitting and
 regulatory compliance, the ability to meet construction schedules, the
 financial and other development capabilities of franchisees, the ability of
 the Company to hire and train qualified management personnel, and general
 economic and business conditions.
 
     International Operations. The Company's business outside of the United
 States is subject to a number of additional factors, including international
 economic and political conditions, differing cultures and consumer
 preferences, currency regulations and fluctuations, diverse government
 regulations and tax systems, uncertain or differing interpretations of rights
 and obligations in connection with international franchise agreements and the
 collection of royalties from international franchisees, the availability and
 cost of land and construction costs, and the availability of experienced
 management, appropriate franchisees, and joint venture partners. Although the
 Company believes it has developed the support structure required for
 international growth, there is no assurance that such growth will occur or
 that international operations will be profitable.
 
     Disposition of Restaurants. The disposition of company operated
 restaurants to new or existing franchisees is part of the Company's strategy
 to develop the overall health of the system by acquiring restaurants from, and
 disposing of restaurants to, franchisees where prudent.  The realization of
 gains from future dispositions of restaurants depends in part on the ability
 of the Company to complete disposition transactions on acceptable terms.
 
 Transactions to Improve Return on Investment. The sale of real estate
 previously leased to franchisees is generally part of the program to improve
 the Company's return on invested capital.  There are various reasons why the
 program might be unsuccessful, including changes in economic, credit market,
 real estate market or other conditions, and the ability of the Company to
 complete sale transactions on acceptable terms and at or near the prices
 estimated as attainable by the Company.
 
 Joint Venture to Manufacture and Distribute Par-Baked Products for Tim Hortons
 Restaurants.  The success of the joint venture to manufacture and distribute
 par-baked products for Tim Hortons restaurants could be affected by a number
 of factors, including many of the factors set forth above.  In addition, the
 ability of the joint venture to acquire real estate and construct and equip a
 manufacturing plant on acceptable terms, the realization of expected levels of
 production efficiencies, and actual product distribution costs and costs
 incurred to equip Tim Hortons restaurants for par-baked products occurring
 within expected ranges, could affect actual results.
 
 
 Readers are cautioned not to place undue reliance on forward-looking
 statements, which speak only as of the date thereof.  The Company undertakes
 no obligation to publicly release any revisions to the forward-looking
 statements contained in this release, or to update them to reflect events or
 circumstances occurring after the date of this release, or to reflect the
 occurrence of unanticipated events.
 
 
 SOURCE  Wendy's International, Inc.

RELATED LINKS

http://www.wendys.com