Attached files
file | filename |
---|---|
8-K - 8K RE Q3'09 WENDY'S/ARBY'S GROUP EARNINGS PRESS RELEASE NOV. 5, 2009 - Wendy's Co | form8-k_2009q3.htm |
EXHIBIT
99.1
Wendy’s/Arby’s Group Reports 3rd Quarter 2009 Results
Wendy’s
Improves Quarterly Restaurant Margins by 400 Basis Points and
Launches
‘Real’ Campaign with Bacon Deluxe Cheeseburger
Arby’s
Introduces Everyday Value Strategy with $5.01 Combos
Company
Ahead of Plan on Key Profit Drivers
Board
Increases Stock Repurchase Authorization to $100 Million
ATLANTA,
November 5, 2009 – Wendy’s/Arby’s Group, Inc. (NYSE: WEN), the third largest
quick-service restaurant company in the United States, today reported results
for the third quarter ended September 27, 2009, and commented on progress
achieved over the past year since the merger between Triarc Companies, Inc.
(“Triarc”) and Wendy’s International, Inc. (“Wendy’s”).
Roland
Smith, President and Chief Executive Officer of Wendy’s/Arby’s Group, stated:
“We are pleased to report $124.4 million of adjusted earnings before interest,
taxes, depreciation and amortization1 (“EBITDA”) for the third quarter 2009, an
increase of 9.1% as compared to the pro-forma third quarter 2008. We
are ahead of plan on our key profit drivers to generate an annualized
incremental $160 million of EBITDA by the end of 2011 from Wendy’s® restaurant
margin improvement and general and administrative expense (“G&A”)
efficiencies. This progress is reflected in the 400 basis points of
margin improvement at Wendy’s in the third quarter of 2009. We are
providing customers with excellent premium products – such as Arby’s®
Roastburger™, Wendy’s Boneless Wings and the new Wendy’s Bacon Deluxe
Cheeseburger – and we are developing more effective value strategies at each
brand during this very challenging economic climate. Looking ahead,
we will leverage marketing initiatives and new product development to increase
sales at each brand and continue to focus on Wendy’s margin improvements and
merger-related G&A savings.”
Third-Quarter
and Year-to-Date Financial Summary
Results
for the third quarter ended September 27, 2009 include the effect of the
September 29, 2008 merger between Triarc and Wendy’s. The results for
the 2008 third quarter and year-to-date periods only include results for Triarc,
except where presented on a pro-forma basis.
§
|
Wendy’s
North America systemwide same-store sales decreased
0.1%. Wendy’s company-operated restaurant margin improved 400
basis points compared to the third quarter a year
ago.
|
§
|
Arby’s
North America systemwide same-store sales decreased
9.0%. Arby’s company-operated restaurant margin decreased 450
basis points compared to the third quarter a year
ago.
|
§
|
Consolidated
revenues were $903.2 million in the third quarter of 2009 and $2.7 billion
year-to-date.
|
§
|
Third
quarter 2009 adjusted EBITDA, excluding pre-tax integration-related costs
of $5.0 million, was $124.4 million, an increase of 9.1% from pro-forma
third quarter 2008 adjusted EBITDA of $114.0
million.
|
§
|
Year-to-date
adjusted EBITDA, excluding pre-tax integration-related costs of $20.1
million, was $321.8 million, and increased 10.0% as compared to pro-forma
2008 year-to-date adjusted EBITDA of $292.5
million.
|
§
|
Third
quarter 2009 income from continuing operations was $14.3 million, or $0.03
per share, including after tax special charges of $12.8 million, or $0.03
per share. Year-to-date income from continuing operations was
$18.2 million, or $0.04 per share, including after tax special charges of
$40.2 million, or $0.09 per share.
|
_____________________________________
1
Wendy’s
Brand Highlights
For the
third quarter of 2009, Wendy’s sales were $536.8 million from company-operated
restaurants and franchise revenues were $76.7 million. Total revenue
was $613.5 million compared to pro-forma revenue of $624.7 million in the third
quarter a year ago. This decrease of $11.2 million was primarily due
to lower company same-store sales resulting from the reduction in the number of
company-operated restaurants serving breakfast, the negative effect of foreign
exchange rates and fewer overall restaurants.
§
|
Wendy’s
North America company-operated same-store sales increased 0.1%, excluding
the effect of approximately 300 fewer Wendy’s restaurants serving
breakfast, compared to the third quarter of 2008. Including the
effect of breakfast removal, company-operated same-store sales decreased
1.4% compared to the third quarter a year
ago.
|
§
|
Wendy’s
North America franchise same-store sales increased
0.4%. Franchise sales were not materially impacted by changes
in the number of restaurants serving
breakfast.
|
§
|
Wendy’s
company-operated restaurant margin was 16.5% for the third quarter of
2009, compared to 12.5% in the third quarter of 2008, reflecting a 400
basis point improvement. The year-over-year improvement was due
primarily to operational improvements in food, labor and certain
controllable costs, lower commodity costs of approximately 100 basis
points, and the benefit of price increases taken late in
2008.
|
§
|
Wendy’s
ended the third quarter of 2009 with 6,608 restaurants, a net decrease of
17 units from the end of the third quarter a year
ago.
|
“Excluding
the impact of breakfast, Wendy’s same-store sales were positive during the
quarter, which we believe was among the best results in the restaurant industry,
and we continued to drive outstanding margin improvement,” said
Smith. “We benefited from lower commodity costs in the third quarter
and expect that trend to continue in the fourth quarter. Although the
margin benefit from prior-year pricing will be less pronounced in the fourth
quarter, we are confident that Wendy’s can improve margins for the full year by
more than 250 basis points, which would represent one-half of our targeted 500
basis point improvement by 2011.”
“Last
month, we launched our ‘You Know When It's Real™’ advertising campaign
highlighting Wendy’s great tasting products, quality ingredients and fresh,
never frozen North American beef. Our new Bacon Deluxe Cheeseburger
with applewood-smoked bacon strengthens Wendy’s brand positioning to be the
best-tasting and highest quality hamburger in the quick-service restaurant
industry,” said Smith.
“While
October company-operated same-store sales have decreased, Wendy’s two-year comp
trends were +1% for the month excluding the effect of breakfast removal, which
is consistent with 2009 year-to-date results. Sales mix for the Bacon
Deluxe Cheeseburger has been encouraging, and we believe same-store sales will
improve from October. As we approach 2010, we have a full pipeline of
new premium and value products in various test phases across the Wendy’s system,
and we are focused on regaining our leadership position in product innovation
and driving sales growth,” said Smith.
Click
here for photos and advertising of Wendy’s Bacon Deluxe: www.wendysarbys.com/about/our-brands/wendysrestaurant.
Arby’s
Brand Highlights
For the
third quarter of 2009, Arby’s sales were $269.2 million from company-operated
restaurants and franchise revenues were $20.5 million. Total revenue
was $289.7 million compared to $310.4 million in the third quarter a year ago, a
decrease of $20.7 million, which was primarily due to lower same-store
sales.
§
|
Arby’s
North America company-operated same-store sales declined 6.5% and North
America franchise same-store sales declined 10.2%. Sales at
company-operated restaurants benefited from more aggressive discounting
than franchise restaurants in the third quarter of
2009.
|
§
|
Arby’s
company-operated restaurant margin was 12.1% in the third quarter of 2009,
compared to 16.6% in the third quarter of 2008. The
year-over-year difference was due primarily to sales deleveraging,
targeted product discounting and increased advertising in the quarter,
partially offset by favorable commodity
costs.
|
§
|
Arby’s
ended the third quarter of 2009 with 3,739 restaurants, a net increase of
4 units from the end of the third quarter a year
ago.
|
2
“We
launched the first phase of Arby’s everyday value strategy in October, which we
believe will compete more effectively against the aggressive promotions and
discounting in the sandwich category,” Smith said. “We introduced our
$5.01 combo offering, which gives customers a choice of five full-sized
sandwiches with fries and a drink. The offer has already generated
substantial sales mix and it provides a platform to build transactions through
increased frequency. The second phase of our everyday value strategy includes
expanding the number of markets offering our $1 value menu, which has
successfully driven traffic and sales in test markets. While October
same-store sales have further softened, reflecting weaker industry trends, we
believe our sales will improve as we begin to benefit from our everyday value
strategy. Longer-term, we believe that our strategy to balance our premium
products with more affordable options will rejuvenate sales and return margins
to higher levels.”
Click
here for photos and advertising of Arby’s $5.01 everyday value offer: www.wendysarbys.com/about/our-brands/arbysrestaurant.
Company
Continues to Expect Average Annual Mid-Teens Adjusted EBITDA Growth Through
2011
The
Company continues to expect to achieve average annual adjusted EBITDA growth in
the mid-teens through 2011. The Company remains on track with its key
profit initiatives targeting a total of $160 million in annualized incremental
EBITDA by the end of 2011. These targeted improvements include $100
million from improving Wendy’s company-operated restaurant margins by 500 basis
points and $60 million from achieving synergies and G&A
reductions.
Wendy’s
Forming Supply Chain Cooperative
During
the 2009 fourth quarter, Wendy’s and its franchisees entered into an agreement
to establish a national supply chain cooperative (co-op) for the Wendy’s brand.
The co-op will manage food and related product purchases and distribution
services for the Wendy’s system in the U.S. and Canada. The co-op is
expected to begin operations in January, 2010. The Company has
committed to fund approximately $15.5 million for the co-op, which will be
recorded as a charge in the fourth quarter of 2009 and paid over an 18 month
period. After an initial startup period, ongoing operations of the co-op will be
funded by all members of the co-op including franchisees.
“The
creation of the Quality Supply Chain Co-op (QSCC) will represent the successful
culmination of an effort by the Company and our franchisees to organize an
improved supply chain system,” said Chief Financial Officer Steve
Hare. “We look forward to the long-term benefits of optimizing the
supply chain, while providing increased transparency to our
franchisees. In the future, the Company will work with QSCC and
Arby’s purchasing co-op (ARCOP) to further leverage the buying power of both
Wendy’s and Arby’s on non-brand specific products and services.”
International
Development
The
Company recently announced hiring industry veteran Andy Skehan as Senior Vice
President of Wendy's/Arby's International to lead plans for international
development. The Company believes there is the potential for more
than 8,000 restaurants outside of North America and plans to capitalize on this
important growth opportunity.
$100
Million Stock Repurchase Authorization
The
Company purchased 10.3 million of shares of common stock as of October 26, 2009,
for $49.1 million at an average per share price of $4.77. At the
close of business on October 30, 2009, the Company had approximately
463,003,000 shares
of common stock outstanding. On November 3, 2009, the Board
authorized an additional $50 million for a total of $100 million authorized
common stock repurchases. The authorization will remain in effect
through January 2, 2011 and will allow the Company to make repurchases as market
conditions warrant.
Special
Expense Items
In the
third quarter of 2009, the Company recorded pre-tax special items of
approximately $20.6 million ($12.8 million after tax), including
integration-related expenses and impairment charges.
Year-to-date
net pre-tax special items were $66.5 million ($40.2 million after tax),
including integration-related expenses, impairment charges, depreciation
adjustments, asset write-offs and investment-related expenses.
3
Interest
Rate Swaps
During
the third quarter of 2009, the Company executed $361 million in fixed to
floating interest rate swaps, which represents approximately 24% of the $1.5
billion of the Company’s long-term debt.
Management
to Host Conference Call Today – November 5, 2009
Management
will host a conference call with slides to discuss its financial results today
(November 5) at 12:00 p.m. ET. Hosting the call will be Roland Smith,
President and Chief Executive Officer; Steve Hare, Senior Vice President and
Chief Financial Officer; and John Barker, Senior Vice President and Chief
Communications Officer.
The
conference call can be accessed live over the phone by dialing 877-572-6014 or
for international callers by dialing 281-913-8524; and the slides can be
accessed from the investor relations page of the Company’s website at
www.wendysarbys.com. A replay will be available two hours after the call and can
be accessed by dialing 800-642-1687, or for international callers by dialing
706-645-9291; the conference ID for the replay is 36103226. The replay will be
available until midnight ET on Thursday, November 19, 2009. The call and slides
will also be webcast live from the investor relations page of the Company's
website at www.wendysarbys.com. The webcast and accompanying slides
will be archived on the Company's website at www.wendysarbys.com.
About
Wendy's/Arby's Group, Inc.
Wendy’s/Arby’s
Group, Inc is the third largest quick-service restaurant company in the U.S. and
includes Wendy’s International, Inc., the franchisor of the Wendy’s restaurant
system, and Arby’s Restaurant Group, Inc., the franchisor of the Arby’s
restaurant system. The combined restaurant systems include more than
10,000 restaurants in the United States and 24 countries and territories
worldwide.
Forward-Looking
Statements
This
press release contains certain statements that are not historical facts,
including, importantly, information concerning possible or assumed future
results of operations of Wendy’s/Arby’s Group, Inc. and its subsidiaries
(collectively “Wendy’s/Arby’s Group” or the “Company”). Those statements,
as well as statements preceded by, followed by, or that include the words “may,”
“believes,” “plans,” “expects,” “anticipates,” or the negation thereof, or
similar expressions, constitute “forward-looking statements” within the meaning
of the Private Securities Litigation Reform Act of 1995 (the “Reform
Act”). All statements that address future operating, financial or business
performance; strategies or expectations; future synergies, efficiencies or
overhead savings; anticipated costs or charges; future capitalization; future
domestic or international business development; future daypart expansion; and
anticipated financial impacts of recent or pending transactions are
forward-looking statements within the meaning of the Reform Act. The
forward-looking statements are based on our expectations at the time such
statements are made, speak only as of the dates they are made and are
susceptible to a number of risks, uncertainties and other factors. Our
actual results, performance and achievements may differ materially from any
future results, performance or achievements expressed or implied by our
forward-looking statements. For all of our forward-looking statements, we
claim the protection of the safe harbor for forward-looking statements contained
in the Reform Act. Many important factors could affect our future
results and could cause those results to differ materially from those expressed
in, or implied by our forward-looking statements. Such factors, all of
which are difficult or impossible to predict accurately, and many of which are
beyond our control, include, but are not limited to: (1) changes in the
quick-service restaurant industry, such as consumer trends toward value-oriented
products and promotions or toward consuming fewer meals away from home;
(2) prevailing economic, market and business conditions affecting the
Company, including competition from other food service providers, increasing
unemployment and decreasing consumer spending; (3) the ability to
successfully integrate acquired businesses and to achieve related synergies,
cost reductions and operational improvements; (4) cost and availability of
capital; (5) cost fluctuations associated with food, supplies, energy,
fuel, distribution or labor; (6) the financial condition of our
franchisees; (7) conditions beyond the Company’s control such as weather,
natural disasters, disease outbreaks, epidemics or pandemics impacting the
Company’s customers or food supplies, or acts of war or terrorism; (8) the
availability of suitable locations and terms for the development of new
restaurants; (9) adoption of new, or changes in, laws, regulations or
accounting policies and practices; (10) changes in debt, equity and
securities markets; (11) changes in the interest rate environment; and
(12) other factors discussed from time to time in the Company’s news
releases, public statements and/or filings with the SEC, including those
identified in the “Risk Factors” sections of our Annual and Quarterly Reports on
Forms 10-K and 10-Q.
4
All
future written and oral forward-looking statements attributable to us or any
person acting on our behalf are expressly qualified in their entirety by the
cautionary statements contained or referred to above. New risks and
uncertainties arise from time to time, and it is impossible for us to predict
these events or how they may affect us. We assume no obligation to update any
forward-looking statements as a result of new information, future events or
developments, except as required by federal securities laws. In addition,
it is our policy generally not to make any specific projections as to future
earnings, and we do not endorse any projections regarding future performance
that may be made by third parties.
Disclosure
Regarding Non-GAAP Financial Measures
EBITDA is
used by the Company as a performance measure for benchmarking against the
Company’s peers and competitors. The Company believes EBITDA is
useful to investors because it is frequently used by securities analysts,
investors and other interested parties to evaluate companies in the restaurant
industry. The Company also uses adjusted EBITDA, which excludes
facilities relocation and corporate restructuring, integration costs included
within general and administrative expense and 2008 Wendy’s special committee
charges as an internal measure of business operating performance. The
Company believes adjusted EBITDA provides a meaningful perspective of the
underlying operating performance of the Company’s current
business. EBITDA and adjusted EBITDA are not recognized terms under
U.S. Generally Accepted Accounting Principles (“GAAP”). Because all
companies do not calculate EBITDA or similarly titled financial measures in the
same way, those measures as used by other companies may not be consistent with
the way the Company calculates EBITDA or similarly titled financial measures and
should not be considered as alternative measures of operating profit (loss) or
net income (loss).
The
Company’s presentation of EBITDA and adjusted EBITDA is not intended to replace
the presentation of the Company’s financial results in accordance with
GAAP.
Media
and Investor Contacts:
John
Barker at 678-514-6900 or john.barker@wendysarbys.com
Kay
Sharpton at 678-514-5292 or kay.sharpton@wendysarbys.com
5
Wendy’s/Arby’s
Group, Inc. and Subsidiaries
Consolidated
Statements of Operations1
Third
Quarter and Nine Month Periods Ended September 27, 2009 and September 28,
2008
(In
Thousands Except Per Share Amounts)
|
Third
Quarter
|
Nine
Months
|
||||||||||||||
(Unaudited)
|
2009
|
2008
|
2009
|
2008
|
||||||||||||
Revenues:
|
||||||||||||||||
Sales
|
$ | 806,038 | $ | 287,641 | $ | 2,395,476 | $ | 860,560 | ||||||||
Franchise
revenues
|
97,183 | 22,730 | 284,416 | 65,679 | ||||||||||||
903,221 | 310,371 | 2,679,892 | 926,239 | |||||||||||||
Costs
and expenses:
|
||||||||||||||||
Cost
of sales
|
684,071 | 239,880 | 2,046,475 | 718,317 | ||||||||||||
General
and administrative
|
97,909 | 36,075 | 320,533 | 123,108 | ||||||||||||
Depreciation
and amortization
|
47,020 | 16,497 | 143,369 | 48,766 | ||||||||||||
Impairment
of long-lived assets
|
15,528 | 14,204 | 31,108 | 15,621 | ||||||||||||
Facilities
relocation and corporate restructuring
|
1,725 | (82 | ) | 8,899 | 812 | |||||||||||
Other
operating expense (income), net
|
146 | - | 2,245 | (487 | ) | |||||||||||
846,399 | 306,574 | 2,552,629 | 906,137 | |||||||||||||
Operating
profit
|
56,822 | 3,797 | 127,263 | 20,102 | ||||||||||||
Interest
expense
|
(36,457 | ) | (13,585 | ) | (89,671 | ) | (41,020 | ) | ||||||||
Investment
income (expense), net
|
737 | 6,724 | (3,850 | ) | 3,189 | |||||||||||
Other
than temporary losses on investments
|
- | (8,100 | ) | (3,916 | ) | (79,686 | ) | |||||||||
Other
income (expense), net
|
1,319 | 736 | 303 | (2,619 | ) | |||||||||||
Income
(loss) from continuing operations before income taxes
|
22,421 | (10,428 | ) | 30,129 | (100,034 | ) | ||||||||||
(Provision
for) benefit from income taxes
|
(8,155 | ) | (2,938 | ) | (11,895 | ) | 12,292 | |||||||||
Income
(loss) from continuing operations
|
14,266 | (13,366 | ) | 18,234 | (87,742 | ) | ||||||||||
Income
from discontinued operations, net of
income taxes
|
422 | 1,219 | 422 | 1,219 | ||||||||||||
Net
income (loss)
|
$ | 14,688 | $ | (12,147 | ) | $ | 18,656 | $ | (86,523 | ) | ||||||
Basic
and diluted net income (loss) per share:
|
||||||||||||||||
Common
stock
|
$ | 0.03 | $ | (0.13 | ) | $ | 0.04 | $ | (0.94 | ) | ||||||
Class
B common stock
|
N/A | $ | (0.13 | ) | N/A | $ | (0.94 | ) | ||||||||
Number
of shares used to calculate diluted income (loss)
|
||||||||||||||||
per
share:
|
||||||||||||||||
Common
stock
|
471,393 | 28,905 | 471,093 | 28,903 | ||||||||||||
Class
B common stock
|
N/A | 63,745 | N/A | 63,720 |
Sept.
27, 2009
|
Dec.
28, 2008
|
|||||||
Balance
Sheet Data:
|
(Unaudited)
|
(Audited)
|
||||||
Cash
and cash equivalents2
|
$ | 644,646 | $ | 90,090 | ||||
Total
assets
|
5,068,306 | 4,645,620 | ||||||
Long-term
debt
|
1,507,857 | 1,081,151 | ||||||
Total
equity
|
2,399,506 | 2,383,445 |
1
|
The
2009 results include the effect of the merger between Triarc Companies,
Inc. and Wendy's International, Inc. which was completed on September 29,
2008; however, the third quarter and nine months ended September 27, 2008
only include results for Triarc Companies, Inc. In connection
with the merger, Wendy's became a wholly owned subsidiary of Triarc and
Triarc changed its name to Wendy's/Arby's Group, Inc. and converted each
outstanding share of Triarc’s Class B common stock into one share of
Wendy’s/Arby’s Class A common stock. In connection with the recent
amendment and restatement of our Certificate of Incorporation, our Class A
common stock is now referred to as Common
Stock.
|
2 Excludes
cash and cash equivalents related to trust accounts for termination costs for
former Wendy's executives, other investments and other restricted cash in both
periods presented and cash equivalents in a managed account at December 28,
2008.
6
Wendy’s/Arby’s
Group, Inc. and Subsidiaries
Calculation
of EBITDA and a Reconciliation of EBITDA to
Income
(Loss) from Continuing Operations Compared to Pro-forma1 2008
Results
(In
Thousands)
|
Third
Quarter
|
Nine
Months
|
||||||||||||||
(Unaudited)
|
Pro-Forma
|
Pro-Forma
|
||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
EBITDA
|
$ | 119,370 | $ | 44,245 | $ | 301,740 | $ | 204,960 | ||||||||
Depreciation
and amortization
|
(47,020 | ) | (46,225 | ) | (143,369 | ) | (140,584 | ) | ||||||||
Impairment
of long-lived assets
|
(15,528 | ) | (15,445 | ) | (31,108 | ) | (17,010 | ) | ||||||||
Operating
profit (loss)
|
56,822 | (17,425 | ) | 127,263 | 47,366 | |||||||||||
Interest
expense
|
(36,457 | ) | (24,974 | ) | (89,671 | ) | (74,423 | ) | ||||||||
Investment
income (expense), net
|
737 | 8,825 | (3,850 | ) | 9,311 | |||||||||||
Other
than temporary losses on investments
|
- | (8,100 | ) | (3,916 | ) | (79,686 | ) | |||||||||
Other
income (expense), net
|
1,319 | (2,567 | ) | 303 | (6,043 | ) | ||||||||||
Income
(loss) from continuing operations before income taxes
|
22,421 | (44,241 | ) | 30,129 | (103,475 | ) | ||||||||||
(Provision
for) benefit from income taxes
|
(8,155 | ) | 888 | (11,895 | ) | 7,458 | ||||||||||
Income
(loss) from continuing operations
|
$ | 14,266 | $ | (43,353 | ) | $ | 18,234 | $ | (96,107 | ) |
Reconciliation
of EBITDA to Adjusted EBITDA
(In
Thousands)
|
Third
Quarter
|
Nine
Months
|
||||||||||||||
(Unaudited)
|
Pro-Forma
|
Pro-Forma
|
||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
EBITDA
|
$ | 119,370 | $ | 44,245 | $ | 301,740 | $ | 204,960 | ||||||||
Plus:
Facilities
relocation and corporate restructuring
|
1,725 | 747 | 8,899 | 3,334 | ||||||||||||
Integration
costs in general and administrative
|
3,292 | - | 11,210 | - | ||||||||||||
Special
committee charges
|
- | 69,008 | - | 84,231 | ||||||||||||
Adjusted
EBITDA
|
$ | 124,387 | $ | 114,000 | $ | 321,849 | $ | 292,525 | ||||||||
Adjusted
EBITDA Growth %
|
9.1 | % | 10.0 | % |
1Additional
Information Online
The Company’s quarterly pro-forma data
for 2008 is available on the Company’s website at www.wendysarbys.com, or by clicking
here. The unaudited pro-forma financial
information is based upon the historical consolidated financial statements of
Wendy’s/Arby’s Group, Inc. (formerly Triarc Companies, Inc.) and Wendy’s
International, Inc. and have been prepared to illustrate the effect of the
merger in which Wendy’s became a wholly owned subsidiary of Wendy’s/Arby’s
Group. The pro-forma results of operations are prepared on an “as if”
basis assuming the merger with Wendy’s occurred at the beginning of 2008 and
includes the effect of the final purchase price allocation as of September 27,
2009.
7
Wendy’s/Arby’s
Group, Inc. and Subsidiaries
Selected
Brand Financial Highlights
Wendy’s
(Unaudited)
|
Third
Quarter
|
Nine
Months
|
||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Systemwide
same-store sales
|
-0.1 | % | 0.2 | % | 0.2 | % | 0.4 | % | ||||||||
Revenues:
(In Thousands)
|
||||||||||||||||
Sales
|
$ | 536,802 | $ | 548,111 | $ | 1,582,928 | $ | 1,617,213 | ||||||||
Franchise
revenues*
|
76,713 | 76,609 | 224,006 | 222,667 | ||||||||||||
$ | 613,515 | $ | 624,720 | $ | 1,806,934 | $ | 1,839,880 | |||||||||
Restaurant
margin %*
|
16.5 | % | 12.5 | % | 14.6 | % | 11.6 | % |
Restaurant
count:
|
Company-operated
|
Franchised
|
Systemwide
|
||
Restaurant
count at June 28, 2009
|
1,395
|
5,213
|
6,608
|
||
Opened
|
1
|
13
|
14
|
||
Closed
|
(1)
|
(13)
|
(14)
|
||
Restaurant
count at September 27, 2009
|
1,395
|
5,213
|
6,608
|
Arby’s
(Unaudited)
|
Third
Quarter
|
Nine
Months
|
||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Systemwide
same-store sales
|
-9.0 | % | -5.1 | % | -8.0 | % | -3.0 | % | ||||||||
Revenues:
(In Thousands)
|
||||||||||||||||
Sales
|
$ | 269,236 | $ | 287,641 | $ | 812,548 | $ | 860,560 | ||||||||
Franchise
revenues
|
20,470 | 22,730 | 60,410 | 65,679 | ||||||||||||
$ | 289,706 | $ | 310,371 | $ | 872,958 | $ | 926,239 | |||||||||
Restaurant
margin %
|
12.1 | % | 16.6 | % | 13.8 | % | 16.5 | % |
Restaurant
count:
|
Company-operated
|
Franchised
|
Systemwide
|
||
Restaurant
count at June 28, 2009
|
1,170
|
2,575
|
3,745
|
||
Opened
|
2
|
12
|
14
|
||
Closed
|
(7)
|
(13)
|
(20)
|
||
Restaurant
count at September 27, 2009
|
1,165
|
2,574
|
3,739
|
*The
Wendy’s results reflect adjustments to the franchise revenues and
restaurant margin to conform to Wendy’s/Arby’s Group definitions.
Restaurant margin is defined as sales from company-operated restaurants
(excluding sales from bakery items and kid’s meal promotion items to
franchisees) less cost of sales (excluding costs from bakery items and
kid’s meal promotion items), divided by
sales.
|
8