020708 Wendy's Report Strong Sales Growth in Q2July 4, 2002Dublin, OH - Wendy's International, Inc. announced continuing strong sales trends in June and robust sales results for the second quarter. The Company also announced the sale of a small business by its Tim Hortons subsidiary and higher earnings guidance for 2002. The same-store sales increases were: * Wendy's U.S. company restaurants: June - 7.3%; Q2 - 6.6% * Tim Hortons Canada restaurants: June - 10.5%; Q2 - 9.5% * Tim Hortons U.S. restaurants: June - 12.3%; Q2 - 3.8% "Our sales momentum continued in June, as we focused on quality products at both Wendy's and Tim Hortons," said Chairman and Chief Executive Officer Jack Schuessler. "Wendy's continued to attract customers with our new Garden Sensations salads and our everyday Super Value Menu. In addition, our marketing has been very effective and our customer service initiatives continue to pay off at the pick-up window and inside our restaurants. Tim Hortons featured a popular strawberry themed baked goods product promotion, and the chain continues to expand its share of the quick-service coffee business." Tim Hortons selling its cup manufacturing business The Company announced that its Tim Hortons subsidiary has signed a definitive agreement to sell its cup manufacturing business to Dopaco Canada, Inc. The sale resulted from a strategic business review by Tim Hortons' management team. The sale is expected to generate approximately $20 million in cash, and a one-time pretax gain of approximately $3.9 million, or approximately $0.02 per share in the third quarter for Wendy's International. The cup manufacturing business generated income of about $0.01 per share for Wendy's International in 2001. The closing is expected by the end of July. Tim Hortons will continue to buy cups and lids from the business being sold to Dopaco Canada, Inc. "Our sale of the cup and lid business is consistent with our strategic plan to divest businesses that are not critical to our long-term objectives," said Chief Financial Officer Kerrii Anderson. "This sale will produce a one- time gain that is separate from our Wendy's restaurant refranchising initiatives. "At the same time, we are adding growth drivers to our Company through investments and acquisitions, such as Baja Fresh(R), which we completed about two weeks ago." Management raising guidance for 2002 EPS Including the approximately $0.02 per share gain from the sale of the cup manufacturing business, 2002 earnings per share are now expected to grow in the 13.5% to 16.5% range, which would produce EPS in a range of $1.87 to $1.92, up from $1.65 in 2001. The outlook is higher than the Company's previous EPS goal of $1.85 to $1.90. The 13.5% to 16.5% EPS growth goal for 2002 includes $0.01 per share in asset gains from refranchising Wendy's restaurants, which management previously disclosed, compared to $0.03 per share in 2001. The 2002 outlook also includes $0.02 to $0.04 per share in dilution from the Baja Fresh acquisition, which was previously disclosed on May 31. The Company's long-term goal for annual EPS growth continues to be in the 12% to 15% range. Management presenting at CIBC conference Management plans to present at the CIBC World Markets Consumer Growth Conference in Boston on July 9. The presentation is scheduled to begin that day at 10:35 a.m. Investors may access the presentation at www.wendys-invest.com . Company plans 2nd Quarter earnings disclosure on July 25 The Company plans to release its second quarter financial results on July 25, 2002. The quarter ended on June 30. A conference call and Internet web cast for investors and the media is scheduled for July 25 at 4:00 p.m. Eastern time. Investors may access the web cast at www.wendys-invest.com . Wendy's International, Inc. overview Wendy's International, Inc. is one of the world's largest restaurant operating and franchising companies, with $8.3 billion in 2001 systemwide sales, more than 8,400 total restaurants and quality brands -- Wendy's Old Fashioned Hamburgers(R), Tim Hortons and Baja Fresh. More information about the Company is available at www.wendys- invest.com . Wendy's Old Fashioned Hamburgers was founded in 1969 by Dave Thomas and is the third largest quick-service hamburger restaurant chain in the world with 6,077 restaurants in the United States, Canada and international markets. More information about Wendy's is available at www.wendys.com . Tim Hortons was founded in 1964 by Tim Horton and Ron Joyce and is the largest coffee and fresh baked goods restaurant chain in Canada. There are 2,049 Tim Hortons restaurants in Canada and 145 in the U.S. More information about Tim Hortons is available at www.timhortons.com . Baja Fresh was founded in 1990 by Jim and Linda Magglos and is the leader in quality, fast-casual Mexican food. The chain has 173 restaurants in the United States. More information about Baja Fresh is available at www.bajafresh.com .
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