Fastfood company Wendy’s has announced that it has filed registration statement necessary for it’s planned IPO of the Tim Horton’s chain and reported on progress with other restructuring initiatives.
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A Form S-1 registration statement has been filed with the United States Securities and Exchange Commission for a 15 to 18% initial public offering of Tim Hortons Inc. The company continues to target March 2006 for the Tim Hortons IPO, and plans to list shares on both the New York Stock Exchange and Toronto Stock Exchange. The stock symbol will be THI. Tim Hortons Inc.’s reporting currency will be Canadian dollars.
Management expects to complete in the fourth quarter the sale of certain Wendy’s real estate assets and the closing of 40 to 45 underperforming Wendy’s restaurants
The company expects to record in the fourth quarter of 2005 approximately US$60-70m in pretax asset gains and approximately US$200m cash proceeds from selling certain Wendy’s real estate properties to franchisees and third parties. The number of Wendy’s properties sold is expected to be approximately 200.
The company also expects to record during the fourth quarter approximately US$23- 28m in pretax charges for the closing of 40-45 underperforming Wendy’s restaurants that were negatively impacting profits and returns , and to reflect the net realizable value of a market held for disposition.
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By GlobalDataThe company expects to record during the fourth quarter a non-cash pretax charge of approximately US$25m for the write down of goodwill for Tim Hortons US, which resulted from the 2004 acquisition of restaurants in New England. The company disclosed in July and again in October it would review its business units during the fourth quarter for any potential impairment of goodwill.
The company also expects to record during the fourth quarter a non-cash pretax charge of US$15-20m for the impairment of fixed assets associated with certain Tim Hortons restaurants in New England that were acquired in 2004.
The company plans to close five Tim Hortons restaurants in the US by year-end 2005, in its normal course of business, which is expected to result in a pretax charge of US$1-2 million. The closings will include two kiosks in New England and three restaurants in other markets. Tim Hortons remains committed to the New England market and the brand’s future success there. Tim Hortons has restaurant openings planned in the US and New England in the fourth quarter. Management has adjusted the time frame for reaching its store development goal of 500 Tim Hortons restaurants in the US from the end of 2007 to the end of 2008. As of 2 October 2005, there were 272 Tim Hortons restaurants in the US.
“We took decisive actions to position our Wendy’s and Tim Hortons US businesses for improved results and we are on track executing the strategic initiatives we announced earlier this year,” said chairman and CEO Jack Schuessler. “We are also on schedule with our S-1 filing today and the IPO in March.”
