Wendy´s: Completes System Optimization Initiative

Dublin / OH. (twc) The Wendy´s Company announced the completion of its System Optimization initiative, launched in July 2013, with the sale of 104 restaurants in four U.S. markets – Phoenix, Los Angeles / Palm Springs, Hawaii and Albuquerque. The buyers are strong, highly capable franchisees, who are committed to restaurant growth and re-imaging along with delivering «A Cut Above» customer service. In total, Wendy´s has sold 418 Company-operated restaurants concentrated in 13 U.S. markets, primarily in the West, as part of a strategy to geographically align its restaurant ownership for efficiencies, while generating a more predictable revenue stream. Wendy´s has received total proceeds from System Optimization of approximately 235 million USD, including 138 million USD in 2013. In total, the purchase agreements for the 13 markets include commitments to re-image about 180 restaurants in Wendy´s contemporary Image Activation restaurant design, as well as development plans for about 100 new restaurants. As a result of System Optimization, the Company expects to generate a higher operating margin and stronger free cash flow, along with further enhancing the quality of its earnings with a more predictable revenue stream from a higher percentage of royalty and rental income. With the completion of the System Optimization initiative, the Company will now operate about 1’000 restaurants in the United States and Canada, comprising approximately 15 percent of Wendy´s restaurant system (that includes more than 6’500 franchise and Company-operated restaurants in the United States and 28 countries and U.S. territories worldwide).