030918 Wendy's Reports Sales Growth in SeptemberSeptember 30, 2003Dublin, OH - Wendy's International, Inc. announced September same-store sales, an update on its share repurchase activity, the completion of its purchase of 68 Wendy's franchise restaurants in Florida, and the sale of 15 Wendy's restaurants to the family of Founder Dave Thomas. For the period ended on September 28, 2003, same-store sales grew 3.5% at Wendy'sŪ U.S. company restaurants and 3.5% at Wendy's U.S. franchise restaurants. Tim HortonsŪ same-store sales increased 6.5% in Canada and 6.9% in the U.S. "We are encouraged with the improving trends and positive sales at Wendy's and Tim Hortons," said Chairman and Chief Executive Officer Jack Schuessler. "Traffic improved again in September and consumers are responding to our focus on operations, quality products and balanced marketing. "Our Wendy's business was strong in September and we are optimistic about the national rollout of our Homestyle Chicken Strips. National advertising began this week for our high quality chicken strips, which is the newest addition to our everyday menu. "Tim Hortons successfully featured several products during September, including a Maple Pecan danish and iced cappuccino. We will be promoting a new bacon, lettuce and tomato sandwich in October," Schuessler added. Wendy's completes the purchase of 68 restaurants in Florida The Company completed the purchase of 68 franchise-owned and operated Wendy's restaurants, and several others under construction, in Orlando and Tampa. The transaction was initially announced on August 5 and closed in the fourth quarter. It is expected to be neutral to earnings in 2003 and accretive in 2004. Thomas family purchases 15 restaurants in the Columbus market The Company sold 15 Wendy's restaurants in the Columbus, Ohio, market to the family of Founder Dave Thomas. The transaction closed in the fourth quarter. The sale price was not disclosed. "We welcome Dave's children as business partners and look forward to working with Kenny, Pam, Wendy, Lori and Molly," said Schuessler. "Dave founded Wendy's in Columbus and this will enable the Thomas family to continue to be part of Dave's legacy in our hometown." Company continued to repurchase common shares The Company continued to repurchase shares of its common stock. Repurchases during the third quarter, which ended on September 28, totaled 284,000 common shares for $8.4 million. The year-to-date repurchase totals are 1.88 million common shares for $50 million. The Company currently has $172.9 million authorized by its Board of Directors for share repurchase, and has bought back a total of $878 million since 1998. Management confirms 2003 EPS goal The Company reiterated its earnings per share goal of $1.97 to $2.03 for 2003, which is a 4% to 7% increase over the previous year. The Company is maintaining its long-term annual EPS growth goal of 12% to 15%, and is evaluating the impact of a tax rate change (announced during the second quarter) and other factors. The net effect of the Thomas transaction and other Wendy's facilities actions is expected to generate earnings of $0.01 per share for the Company during the fourth quarter of 2003. Company Plans 3rd Quarter disclosure The Company plans to publish its 2003 third quarter financial results on October 23. The Company plans to hold a conference call and web cast that same day for investors at 4:00 p.m. Eastern time. Investors and the public may participate in the conference call in either one of the following ways: Phone Call: The dial-in number is 877-572-6014 (domestic) or 706-679-4852 (international). No need to register in advance. Please note that instant replay will be available following the conference call. The instant replay number is 800-642-1687 (domestic) and 706-645-9291 (international). The conference ID number is 3134850. The instant replay will be available through midnight Eastern on October 27. A simultaneous web cast will be available at www.wendys-invest.com ; the call will also be archived at that site. Wendy's International, Inc. overview Wendy's International, Inc. is one of the world's largest restaurant operating and franchising companies with more than 9,000 total restaurants and quality brands - Wendy's Old Fashioned HamburgersŪ, Tim Hortons and Baja Fresh Mexican Grill. The Company invested in two additional quality brands during 2002 - Cafe Express and Pasta Pomodoro.
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