July 27, 2006 at 14:37 PM EDT
Wendy's International, Inc. Announces 2006 Second-Quarter Results

Wendy's International, Inc. (NYSE:WEN):

-- Revenues increased 8.3% to $1.0 billion

-- Reported net loss was $29.1 million

-- Company announces pre-tax charges for Baja Fresh of $122.5 million ($93.0 million after tax) and severance related to restructuring

Wendy's International, Inc. (NYSE:WEN) today announced its financial results for the second quarter 2006.

Total revenues increased 8.3% to $1.0 billion.

The Company's second-quarter pretax loss was $26.0 million compared to pretax income of $106.7 million in 2005. Reported net loss was $29.1 million compared to net income of $70.8 million in the second quarter of 2005. The Company reported a net loss per share of $0.25 compared to diluted EPS of $0.61 in the second quarter of 2005.

Charges significantly affected earnings in the 2006 second quarter (see "second-quarter results" below for more information), including goodwill, other intangible and fixed asset impairment charges for Baja Fresh(R) Mexican Grill, as well as voluntary early retirement costs, severance expenses and consulting fees, among others.

Excluding the Baja Fresh after tax impairment charges of $93.0 million, net income would have been $63.8 million or $0.54 per share, based on fully diluted shares of 117.8 million (see "Baja Fresh statement" below).

"Our reported second-quarter results for the overall company were lower than expected, primarily due to factors unrelated to the performance of our core Wendy's and Tim Hortons(R) businesses," said interim Chief Executive Officer and President Kerrii Anderson.

"Excluding charges and costs for our restructuring initiatives, our core Wendy's(R) business is improving," Anderson said. "During the second quarter Wendy's produced the strongest same-store sales gains in the last seven quarters and food costs are improving. Wendy's July same-store sales trends are even stronger and are running about 3.5%. Our leadership team, operators and franchisees are excited about the turnaround of our business, and we are optimistic that our momentum will continue into the third quarter. We have a strong lineup of new and promotional products in the pipeline."

Tim Hortons also continued its strong momentum, exceeding expectations once again in its second quarter as a public company.

Wendy's demonstrates progress with sales initiatives and cost-cutting measures

Wendy's second-quarter sales initiatives included the April introduction of its new Frescata(TM) deli sandwich line, which features high-quality deli meats, fresh toppings and artisan bread.

During the second quarter Wendy's also promoted its Late-Night business; its Fix n' Mix Frosty(TM), featuring the customer's choice of M&Ms(R), Butterfinger(R) or Oreo(R) toppings; Combo Choices, which offers consumers a choice of side items with the purchase of a sandwich; a revised combo sizing program with new options for drink sizes and sides; a new 99-cent chicken sandwich; and Wendy's Kids' Meal(R) Choices program, featuring two nutritious sandwiches and a low-fat yogurt and granola side option. Wendy's announced in July that it will be introducing a vanilla Frosty at many locations throughout the U.S., beginning in August.

During the third quarter, Wendy's is launching its new Frescata Italiana sandwich. Frescata Italiana is the fifth member of the Frescata sandwich line-up, and contains Sun dried Tomato Vinaigrette dressing, roasted red peppers, Swiss cheese, black forest ham, Genoa salami and Romaine lettuce. The Company will also be testing several new products during the third quarter, including the 4-Alarm Spicy Chicken Sandwich, "Big Dipper" wing-sized chicken fillets with dipping sauces, Chunky Chicken Salad Frescata and new Double Melt Cheeseburgers.

Wendy's continues to make progress with its plan to reduce general and administrative and overhead costs by $100 million. The Company confirmed that it has eliminated 355 positions, which will account for the majority of the $100 million total savings. Of the 355 positions, approximately three-quarters were from the corporate office, with the remainder coming from the field offices. A significant number of positions were eliminated through a voluntary early retirement program and normal attrition.

Tim Hortons spin-off on track for October 1

Wendy's announced in June that its Board of Directors has confirmed its intent to spin off the 160 million shares of Tim Hortons that it currently owns. The shares represent an 82.75% ownership stake in Tim Hortons.

Wendy's is targeting October 1, 2006, to complete the Tim Hortons spin-off, assuming it has received from the IRS a ruling on the tax-free status of the distribution before that time. The record date to determine the shareholders who will be entitled to the Tim Hortons shares at the time of distribution will be set by the Wendy's Board of Directors in advance of the distribution date.

In preparation for the spin-off, Tim Hortons continues to build the infrastructure necessary to be a standalone public company. Tim Hortons has recently added resources in the Financial Reporting, Treasury, Corporate Governance and Securities Law areas. Tim Hortons expects to have in place sufficient internal resources in the areas it has historically shared with Wendy's prior to the separation date.

Tim Hortons promoted its new caramel-themed baked goods during the second quarter, including caramel-chocolate donuts, caramel apple fritters, caramel streusel cakes and caramel turnovers in April.

Tim Hortons promoted iced cappuccino with "flavor shots" of butter caramel, French vanilla, hazelnut or raspberry during May. These flavor shots can also be added to other beverages. Through May and June, Tim Hortons introduced a new chunky chicken salad wrap, and in June promoted strawberry-themed desserts, featuring a strawberry tart.

During the third quarter, Tim Hortons will promote its flavored iced cappuccino and its toasted chicken club sandwich in both Canada and the U.S. The Company will also promote its 12-grain bagel in Canada and its chicken salad wraps in the U.S.

Second-quarter results

The 2006 second-quarter results for the Company include the impact of:

-- Strong sales at Tim Hortons, both in Canada and the U.S.

-- Slightly positive same-store sales at Wendy's.

-- Negative same-store sales at Baja Fresh Mexican Grill.

-- A total of 69 new system-wide restaurants opened in the quarter, which is lower than initially planned, compared to 74 in the same period a year ago. Wendy's opened 38 new units and Tim Hortons opened 30 new restaurants.

-- The loss of approximately $4 million in pretax rental income due to the sale of Wendy's properties during 2005 and 2006, which impacts the franchise revenue line.

-- An improvement in Wendy's food costs, including the system-wide cost for fresh ground beef, which averaged 6.3% lower compared to one year ago. This benefited pretax income by approximately $2 million compared to 2005.

-- Incremental pretax advertising expense of $10 million for the Wendy's brand. This impacts the operating costs line on the income statement.

-- A $4.6 million reduction in expenses for health care claims, which impacted both the company restaurant operating costs and general and administrative expense lines.

-- General and administrative (G&A) expenses of $81.6 million, or 7.9% of revenues, compared to $73.2 million, or 7.7% of revenues, in the second quarter of 2005. Impacting G&A was approximately $2 million in incremental pretax employee stock compensation expense, reflecting the acceleration of restricted stock unit awards for Tim Hortons employees leading up to the planned spin-off of Tim Hortons (in accordance with Statement of Financial Accounting Standards No. 123R - "Share-Based Payment"). G&A also included the impact of a stronger Canadian dollar and incremental administrative expenses at Tim Hortons as it prepares to become a standalone public company.

-- Other expense of $28.3 million, compared to other income of $3.6 million in the second quarter of 2005. The increase primarily relates to the pretax impact of initiatives for the implementation of Wendy's Combo Plan, including voluntary early retirement costs, severance expenses and consulting fees totaling $27.3 million.

-- Higher pretax interest expense from the third-party debt entered into during the first quarter by Tim Hortons of approximately $4 million, more than offset by higher pretax interest income on proceeds from the Tim Hortons initial public offering (IPO) and new debt of about $11 million in late March.

-- The loss of 17.25%, or $12.3 million, of the net income contribution from Tim Hortons following its IPO in late March.

-- $122.5 million in pretax ($93.0 million after tax) non-cash goodwill, other intangible and fixed asset impairment charges for Baja Fresh, in accordance with SFAS No. 142 "Goodwill and Other Intangible Assets" and SFAS No. 144 "Accounting for the Impairment or Disposal of Long-Lived Assets." The Company's testing for impairment was not complete as of the date of this press release. Any adjustment to the charges will be included in the Company's second-quarter Form 10-Q, and will represent management's best estimates as of the end of the second quarter. The Company previously announced its intent to pursue strategic alternatives for its Baja Fresh business, and any future gain or loss will depend upon the selection of an alternative. The impairment charges reflect the continued declining sales and overall performance at Baja Fresh during the first half of 2006.

-- The income tax provision reflects a benefit of approximately $11 million from the resolution of tax audits at Tim Hortons.

-- Stronger Canadian currency ($1.12 vs. $1.24 in 2005), which benefited pretax income by approximately $9.6 million compared to 2005.

Third-quarter outlook

The Company expects its third-quarter beef price to improve on a system-wide basis by an average of 13.5% compared to the third quarter of 2005. Average beef costs for the first nine months of 2006 will be 7.8% lower than in the same period in 2005. The Company expects rising utility costs to partly offset the improvement in beef costs.

The Company anticipates that it will incur additional costs in the third quarter totaling $10 million to $15 million for a number of items including costs related to the spin-off transaction, voluntary early retirement costs, severance expenses and consulting fees.

Board approves 114th consecutive dividend

The Board of Directors approved a quarterly dividend of $0.17 per share, payable on August 21 to shareholders of record as of August 7. The dividend will be the Company's 114th consecutive dividend.

Second-quarter conference call and webcast scheduled for today, July 27

Tim Hortons management will host a conference call at 3:00 p.m. (Eastern) today, July 27 to discuss second quarter results, followed by Wendy's management at 4:00 p.m. (Eastern). Investors and the public may listen to either or both conference calls in the following ways:

-- Phone Call: The dial-in number is 877-572-6014 (U.S. and Canada) or 706-679-4852 (International). No need to register in advance.

-- Simultaneous Web Cast: Available at www.wendys-invest.com. The call will also be archived at that site.

Second-Quarter Same-Store Sales Summary

                             2Q 2006       2Q 2005        2006 YTD
----------------------------------------------------------------------
 Wendy's U.S. Company          0.7%         -4.6%          -2.0%
----------------------------------------------------------------------
 Wendy's U.S. Franchise        1.0%         -3.9%          -2.0%
----------------------------------------------------------------------
 Tim Hortons Canada            6.1%          5.6%           7.3%
----------------------------------------------------------------------
 Tim Hortons U.S.              8.4%          9.1%           9.1%
----------------------------------------------------------------------
 Baja Fresh System            -5.5%         -1.7%          -4.6%
----------------------------------------------------------------------


Monthly Same-Store Sales Summary for April(a), May, and June

                               April April   May   May     June  June
                               2006  2005    2006  2005    2006  2005
------------------------------------------  ------------  ------------
Wendy's U.S. Company           0.2%  -5.8%   -0.5% -4.0%    2.5% -3.7%
------------------------------------------  ------------  ------------
Wendy's U.S. Franchise         0.5%  -5.5%   -0.1% -2.9%    2.8% -2.9%
------------------------------------------  ------------  ------------
Tim Hortons Canada             5.0%   6.5%    6.4%  6.3%    7.1%  3.7%
------------------------------------------  ------------  ------------
Tim Hortons U.S.               5.6%  11.5%   10.0%  9.0%   10.1%  6.2%
------------------------------------------  ------------  ------------

(a) April sales results were impacted by an Easter shift, as the
    holiday was in the first quarter a year ago, but was in the second
    quarter this year.


Second-Quarter New Restaurant Openings

                                2Q 2006            2Q 2005
----------------------------------------------------------------
 Wendy's                          38                 46
----------------------------------------------------------------
 Tim Hortons                      30                 23
----------------------------------------------------------------
 Baja Fresh                        1                  5
----------------------------------------------------------------
 TOTAL                            69                 74
----------------------------------------------------------------

Safe Harbor statement

Certain information in this news release, particularly information regarding future economic performance and finances, and plans, expectations and objectives of management, is forward looking. Factors set forth in our Safe Harbor under the Private Securities Litigation Reform Act of 1995, 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. Please review the Company's Safe Harbor statement at http://www.wendys-invest.com/safeharbor.

Baja Fresh statement

The company believes that presenting its net income and EPS results excluding the impact of the Baja Fresh impairment charges provides a more accurate view of its underlying operating performance.

Wendy's International, Inc. overview

Wendy's International, Inc. is one of the world's largest restaurant operating and franchising companies with more than 9,900 total restaurants and quality brands, including Wendy's Old Fashioned Hamburgers(R) and Baja Fresh Mexican Grill. The Company also has investments in three additional quality brands - Tim Hortons, Cafe Express and Pasta Pomodoro(R). More information about the Company is available at www.wendys-invest.com.

             WENDY'S INTERNATIONAL, INC. AND SUBSIDIARIES
                   CONSOLIDATED STATEMENTS OF INCOME
                 (In thousands, except per share data)

                              (Unaudited)

                              Second Quarter Ended
                               7/2/2006  7/3/2005  $ Change  % Change
                              ---------- --------- --------- ---------

REVENUES
Retail sales                   $825,620  $770,508   $55,112       7.2%
Franchise revenues              204,536   180,514    24,022      13.3%
                              ---------- --------- --------- ---------
TOTAL REVENUES                1,030,156   951,022    79,134       8.3%
                              ---------- --------- --------- ---------

COSTS & EXPENSES
Cost of sales                   539,538   505,535    34,003       6.7%
Company restaurant operating
 costs                          174,354   172,623     1,731       1.0%
Operating costs                  59,806    36,853    22,953      62.3%
Depreciation of property &
 equipment                       50,200    49,633       567       1.1%
General & administrative
 expenses                        81,602    73,221     8,381      11.4%
Baja Fresh impairment charges   122,482         0   122,482       n/m
Other (income) expense, net      28,258    (3,567)   31,825       n/m
                              ---------- --------- --------- ---------
TOTAL COSTS & EXPENSES        1,056,240   834,298   221,942      26.6%
                              ---------- --------- --------- ---------

OPERATING (LOSS) INCOME         (26,084)  116,724  (142,808)   -122.3%

Interest expense                (14,767)  (11,330)   (3,437)    -30.3%
Interest income                  14,866     1,335    13,531       n/m
                              ---------- --------- --------- ---------

(LOSS) INCOME BEFORE INCOME
 TAXES AND MINORITY INTEREST    (25,985)  106,729  (132,714)   -124.3%

INCOME TAXES                     (9,186)   35,969   (45,155)      n/m

Tim Hortons Inc. minority
 interest                        12,316         0    12,316       n/m
                              ---------- --------- --------- ---------

NET (LOSS) INCOME              ($29,115)  $70,760  ($99,875)   -141.1%
                              ========== ========= ========= =========

Diluted earnings per common
 share                           ($0.25)    $0.61    ($0.86)    -60.7%
                              ========== ========= ========= =========

Diluted shares                  116,861   116,632       229       0.2%
                              ========== ========= ========= =========


n/m - not meaningful



             WENDY'S INTERNATIONAL, INC. AND SUBSIDIARIES
                   CONSOLIDATED STATEMENTS OF INCOME
                 (In thousands, except per share data)

                              (Unaudited)

                             Year-to-Date Ended
                             7/2/2006    7/3/2005  $ Change  % Change
                           ----------- ----------- --------- ---------

REVENUES
Retail sales               $1,579,367  $1,495,055   $84,312       5.6%
Franchise revenues            382,309     350,140    32,169       9.2%
                           ----------- ----------- --------- ---------
TOTAL REVENUES              1,961,676   1,845,195   116,481       6.3%
                           ----------- ----------- --------- ---------

COSTS & EXPENSES
Cost of sales               1,045,346     983,450    61,896       6.3%
Company restaurant
 operating costs              350,067     342,293     7,774       2.3%
Operating costs               120,157      73,035    47,122      64.5%
Depreciation of property &
 equipment                     99,132      98,351       781       0.8%
General & administrative
 expenses                     164,086     149,065    15,021      10.1%
Baja Fresh impairment
 charges                      122,482           0   122,482       n/m
Other (income) expense, net    19,678      (7,535)   27,213       n/m
                           ----------- ----------- --------- ---------
TOTAL COSTS & EXPENSES      1,920,948   1,638,659   282,289      17.2%
                           ----------- ----------- --------- ---------

OPERATING INCOME               40,728     206,536  (165,808)    -80.3%

Interest expense              (27,366)    (22,864)   (4,502)    -19.7%
Interest income                19,004       2,524    16,480       n/m
                           ----------- ----------- --------- ---------

INCOME BEFORE INCOME TAXES
 AND MINORITY INTEREST         32,366     186,196  (153,830)    -82.6%

INCOME TAXES                   (2,532)     64,180   (66,712)      n/m

Tim Hortons Inc. minority
 interest                      12,781           0    12,781       n/m
                           ----------- ----------- --------- ---------

NET INCOME                    $22,117    $122,016  ($99,899)    -81.9%
                           =========== =========== ========= =========

Diluted earnings per common
 share                          $0.19       $1.06    ($0.87)    -35.8%
                           =========== =========== ========= =========

Diluted shares                117,082     115,612     1,470       1.3%
                           =========== =========== ========= =========


n/m - not meaningful



             WENDY'S INTERNATIONAL, INC. AND SUBSIDIARIES
                          REVENUES BY SEGMENT

                                                        Increase
                                                        (Decrease)
(in thousands):         Second Quarter Ended         From Prior Year
                  --------------------------------- ------------------
                    July 2,   % of   July 3,  % of
                     2006    Total    2005   Total  Dollars Percentage
                  ----------------- --------------- ------------------
Retail Sales
-----------------
Wendy's             $542,281  65.7% $537,825  69.8%  $4,456       0.8%
Tim Hortons          234,107  28.3%  180,493  23.4%  53,614      29.7%
Developing
 Brands(a)            49,232   6.0%   52,190   6.8%  (2,958)     -5.7%
                  -----------       ---------       --------
                    $825,620 100.0% $770,508 100.0% $55,112       7.2%
                  ===========       =========       ========

Franchise
 Revenues
-----------------
Wendy's              $76,342  37.3%  $77,312  42.8%   ($970)     -1.3%
Tim Hortons          126,264  61.7%  101,002  56.0%  25,262      25.0%
Developing
 Brands(a)             1,930   1.0%    2,200   1.2%    (270)    -12.3%
                  -----------       ---------       --------
                    $204,536 100.0% $180,514 100.0% $24,022      13.3%
                  ===========       =========       ========

Total Revenues
-----------------
Wendy's             $618,623  60.0% $615,137  64.7%  $3,486       0.6%
Tim Hortons          360,371  35.0%  281,495  29.6%  78,876      28.0%
Developing
 Brands(a)            51,162   5.0%   54,390   5.7%  (3,228)     -5.9%
                  -----------       ---------       --------
                  $1,030,156 100.0% $951,022 100.0% $79,134       8.3%
                  ===========       =========       ========

(a) Developing Brands include Baja Fresh and Cafe Express.



(in                                                Increase (Decrease)
 thousands):            Year-to-Date Ended           From Prior Year
               ----------------------------------- -------------------
                 July 2,   % of    July 3,   % of
                  2006    Total     2005    Total   Dollars Percentage
               ----------------- ----------------- -------------------
Retail Sales
--------------
Wendy's        $1,041,512  65.9% $1,051,859  70.4% ($10,347)     -1.0%
Tim Hortons       442,307  28.0%    342,637  22.9%   99,670      29.1%
Developing
 Brands(a)         95,548   6.1%    100,559   6.7%   (5,011)     -5.0%
               -----------       -----------       ---------
               $1,579,367 100.0% $1,495,055 100.0%  $84,312       5.6%
               ===========       ===========       =========

Franchise
 Revenues
--------------
Wendy's          $141,584  37.0%   $152,144  43.5% ($10,560)     -6.9%
Tim Hortons       237,087  62.0%    193,747  55.3%   43,340      22.4%
Developing
 Brands(a)          3,638   1.0%      4,249   1.2%     (611)    -14.4%
               -----------       -----------       ---------
                 $382,309 100.0%   $350,140 100.0%  $32,169       9.2%
               ===========       ===========       =========

Total Revenues
--------------
Wendy's        $1,183,096  60.3% $1,204,003  65.2% ($20,907)     -1.7%
Tim Hortons       679,394  34.6%    536,384  29.1%  143,010      26.7%
Developing
 Brands(a)         99,186   5.1%    104,808   5.7%   (5,622)     -5.4%
               -----------       -----------       ---------
               $1,961,676 100.0% $1,845,195 100.0% $116,481       6.3%
               ===========       ===========       =========

(a) Developing Brands include Baja Fresh and Cafe Express.



             WENDY'S INTERNATIONAL, INC. AND SUBSIDIARIES
                      OPERATING INCOME BY SEGMENT


(in
 thousands):         Second Quarter Ended                Change
              ----------------------------------- --------------------
               July 2,   % of    July 3,   % of
                2006   Revenues   2005   Revenues  Dollars  Percentage
              ----------------- ----------------- --------------------
Operating
 Income (Loss)
--------------
Wendy's        $51,217     8.3%  $57,430     9.3%   ($6,213)    -10.8%
Tim Hortons     93,512    25.9%   76,587    27.2%    16,925      22.1%
Developing
 Brands(a)    (124,296) -242.9%   (1,160)   -2.1%  (123,136)      n/m
              ---------         ---------         ----------
Segment
 operating
 income        $20,433     2.0% $132,857    14.0% ($112,424)    -84.6%
Corporate
 charges(b)    (46,517)          (16,133)           (30,384)

              ---------         ---------         ----------
Operating
 income       ($26,084)   -2.5% $116,724    12.3% ($142,808)   -122.3%
              =========         =========         ==========


(a) Developing Brands include Baja Fresh and Cafe Express. Second
 quarter 2006 includes impairment charges of $122,482.

(b) Corporate charges include certain overhead costs which are not
 allocated to individual segments.

n/m - not meaningful



(in
 thousands):          Year-to-Date Ended                 Change
              ----------------------------------- --------------------
               July 2,   % of    July 3,   % of
                2006   Revenues   2005   Revenues  Dollars  Percentage
              ----------------- ----------------- --------------------
Operating
 Income (Loss)
--------------
Wendy's        $62,999     5.3% $101,368     8.4%  ($38,369)    -37.9%
Tim Hortons    169,466    24.9%  139,131    25.9%    30,335      21.8%
Developing
 Brands(a)    (128,762) -129.8%   (4,615)   -4.4%  (124,147)      n/m
              ---------         ---------         ----------
Segment
 operating
 income       $103,703     5.3% $235,884    12.8% ($132,181)    -56.0%
Corporate
 charges(b)    (62,975)          (29,348)           (33,627)

              ---------         ---------         ----------
Operating
 income        $40,728     2.1% $206,536    11.2% ($165,808)    -80.3%
              =========         =========         ==========


(a) Developing Brands include Baja Fresh and Cafe Express. 2006
 includes impairment charges of $122,482.

(b) Corporate charges include certain overhead costs which are not
 allocated to individual segments.

n/m - not meaningful



             WENDY'S INTERNATIONAL, INC. AND SUBSIDIARIES
                        SYSTEMWIDE RESTAURANTS

                                       Increase/           Increase/
                      As of    As of  (Decrease)   As of   (Decrease)
                     July 2, April 2, From Prior  July 3, From Prior
                      2006     2006     Quarter    2005       Year
Wendy's             --------------------------------------------------
-------
U.S.
      Company          1,322    1,313          9    1,340         (18)
      Franchise        4,693    4,704        (11)   4,652          41
                    --------------------------------------------------
                       6,015    6,017         (2)   5,992          23
Canada
      Company            148      150         (2)     158         (10)
      Franchise          233      230          3      226           7
                    --------------------------------------------------
                         381      380          1      384          (3)
Other International
      Company              5        5          0        5           0
      Franchise          342      343         (1)     346          (4)
                    --------------------------------------------------
                         347      348         (1)     351          (4)

Total Wendy's
      Company          1,475    1,468          7    1,503         (28)
      Franchise        5,268    5,277         (9)   5,224          44
                    --------------------------------------------------
                       6,743    6,745         (2)   6,727          16
                    ==================================================

Tim Hortons
-----------
U.S.
      Company             62       63         (1)      67          (5)
      Franchise          235      229          6      197          38
                    --------------------------------------------------
                         297      292          5      264          33
Canada
      Company             40       35          5       32           8
      Franchise        2,585    2,576          9    2,459         126
                    --------------------------------------------------
                       2,625    2,611         14    2,491         134

Total Tim Hortons
      Company            102       98          4       99           3
      Franchise        2,820    2,805         15    2,656         164
                    --------------------------------------------------
                       2,922    2,903         19    2,755         167
                    ==================================================

Baja Fresh
----------
U.S.
      Company            143      143          0      146          (3)
      Franchise          155      156         (1)     157          (2)
                    --------------------------------------------------
Total Baja Fresh         298      299         (1)     303          (5)
                    ==================================================

Cafe Express
------------
U.S.
      Company             19       19          0       19           0
                    --------------------------------------------------
Total Cafe Express        19       19          0       19           0
                    ==================================================

Total System
      Company          1,739    1,728         11    1,767         (28)
      Franchise        8,243    8,238          5    8,037         206
                    --------------------------------------------------
                       9,982    9,966         16    9,804         178
                    ==================================================



                      WENDY'S INTERNATIONAL, INC.
                     Income Statement Definitions


Retail Sales         Includes sales from company operated restaurants.
                     Also included are the sales to franchisees from
                     Wendy's bun baking facilities, and sales to
                     franchisees from Tim Hortons' coffee roaster and
                     distribution warehouses.

Franchise Revenues   Consists primarily of royalties, rental income
                     and franchise fees.  Franchise fees include
                     charges for various costs and expenses related
                     to establishing a franchisee's business, and
                     include initial equipment packages for the
                     Hortons' franchises.

Cost of Sales        Includes food, paper and labor costs for
                     restaurants.  Also included are the cost of
                     goods sold to franchisees from Wendy's bun
                     baking facilities, and Tim Hortons' coffee
                     roaster and distribution warehouses.

Company Restaurant   Consists of all costs necessary to manage and
Operating Costs      operate restaurants, except cost of sales and
                     depreciation.  These include advertising,
                     insurance, maintenance, rent, etc., as well as
                     support costs for personnel directly related to
                     restaurant operations.

Operating Costs      Includes rent expense related to properties
                     leased to franchisees, and cost of equipment
                     sold to franchisees as part of the initiation of
                     the franchise business.  Training and other
                     costs necessary to ensure a successful Hortons'
                     franchise opening and costs to operate and
                     maintain the Tim Hortons' distribution
                     warehouses, Tim Hortons' coffee roaster and
                     Wendy's bun baking facilities are also include
                     in operating costs.

General and          Costs that cannot be directly related to
 Administrative      generating revenue.
 Expenses

Other Income and     Includes expenses (income) that are not directly
 Expense             derived from the Company's primary businesses.
                     This includes income from the Company's
                     investments in joint ventures and other minority
                     investments.  Expenses include store closures,
                     other asset write-offs and restructuring costs.

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