Company reaffirms 7-9% earnings growth guidance
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DUBLIN, Ohio/PRNewswire/ — Wendy’s International, Inc. (NYSE: WEN – news) today announced preliminary sales for the month of November, which ended on December 2, 2001.
Same-store sales grew 1.6% at Wendy’s® U.S. company restaurants, on top of a 3.4% increase in the same period a year ago. The November performance was a significant improvement over Wendy’s sales increase during October.
Same-store sales grew 6.0% at Tim Hortons® restaurants in Canada, on top of a 9.5% increase a year ago, while same-store sales increased 6.1% at Tim Hortons restaurants in the U.S., on top of a 17.3% increase a year ago.
“We are pleased with our sales performance considering the tough economic conditions in North America,” said Chairman and CEO Jack Schuessler. “Our core restaurant business is in good shape.
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By GlobalData“At Wendy’s, trends are stabilizing and we are encouraged with November sales. We are optimistic that trends will continue to improve as we focus on quality products, balanced marketing and our Service Excellence® program, rather than price discounting that we’ve seen in the quick-service restaurant industry,” Schuessler added. “Tim Hortons continues to produce superior sales growth in Canada and the U.S., and delivered excellent results versus very tough comparisons a year ago.”
The Company is managing costs throughout the organization aggressively and is executing strategic initiatives to meet its performance goals. Management continues to expect to produce earnings per share in a range of $1.64 to $1.67 for the year 2001, which would be an increase of 7% to 9% over a year ago.
The Company continues to face certain cost pressures as beef prices are higher than a year ago and the weakening Canadian dollar is causing foreign currency pressure. The Company is generating lower than expected interest income as rates continue to fall.
The Company plans to announce its fourth quarter and 2001 financial results on February 8, 2002, and host a meeting with the investment community in New York City on February 11, 2002. The meeting will be available as a conference call and web cast. To access the Company’s web casts, go to www.wendys-invest.com .
Wendy’s will be featured prominently at several upcoming events, including the Wendy’s High School Heisman show in New York. The High School Heisman show airs at 5:00 p.m. on Saturday, December 8, on ESPN. The college Heisman show, which is presented by Wendy’s, airs the same day at 7:00 p.m. on ESPN.
Wendy’s Three Tour Challenge golf tournament featuring top players from each professional golf tour — the PGA, Senior PGA and LPGA — will air on December 22-23 from 4:00 to 6:00 p.m. on ABC.
“A Home for the Holidays” Christmas special will be televised on Friday, December 21, at 8:00 p.m. on CBS. The show features performances by Mariah Carey, Destiny’s Child, Enrique Eglesias, Mandy Moore and Charlotte Church, and showcases adopted children and their families.
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® was founded in 1969 by Dave Thomas and is the third largest quick-service hamburger chain in the world with about 6,000 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 more than 2,000 Tim Hortons restaurants of which more than 1,900 are in Canada.
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 .
SOURCE: Wendy’s International, Inc.
