The Wendy's Company Reports Audited Full-Year 2012 Results

          The Wendy's Company Reports Audited Full-Year 2012 Results

Fourth-Quarter Adjusted EBITDA Increased 19% to $95.9 Million; Full-Year
Adjusted EBITDA Increased 1% to $333.3 Million

Positive Momentum from Brand Transformation Continues in 2013

Company Remains on Track to Reimage 100 Restaurants in 2013; Continues to
Target 100 Franchise Restaurant Reimages in 2013

Company Reiterates 2013 Adjusted EBITDA Outlook of $350 to $360 million and
Adjusted EPS Outlook of $0.18 to $0.20

PR Newswire

DUBLIN, Ohio, Feb. 28, 2013

DUBLIN, Ohio, Feb. 28, 2013 /PRNewswire/ --The Wendy's Company (NASDAQ: WEN)
today reported audited results for the fiscal year ended Dec. 30, 2012. The
Company had previously issued preliminary unaudited results for the 2012
fourth quarter and full year on Jan. 16, 2013.

(Logo: http://photos.prnewswire.com/prnh/20120831/MM66742LOGO )

The Company's 2012 fourth-quarter and full-year Adjusted EBITDA results of
$95.9 million and $333.3 million, respectively, remain unchanged from the
preliminary results. Fourth-quarter Adjusted EBITDA increased 19 percent
compared to the fourth quarter of 2011, while full-year Adjusted EBITDA
increased 1 percent compared to 2011.

See "Disclosure Regarding Non-GAAP Financial Measures" below for a
reconciliation of the non-GAAP measures (i.e., Adjusted EBITDA from continuing
operations and Adjusted Earnings Per Share from continuing operations)
included herein, and see "Changes from 2012 Preliminary Results" below for a
description of changes in the Company's audited 2012 results compared to its
preliminary unaudited results.

Positive Momentum from Brand Transformation Continues in 2013

The Company recently announced that it would contemporize its brand logo for
the first time since 1983, as part of brand transformation that is currently
under way to position the Wendy's® brand as "A Cut Above." The contemporized
logo began appearing this week in Wendy's advertising. The logo will also
begin appearing on product packaging, crew uniforms, new restaurant signage,
menu boards and digital assets.

"Our brand transformation accelerated with Image Activation during 2012, and
our 'A Cut Above' brand positioning has continued to gain traction with
consumers," said President and Chief Executive Officer Emil Brolick. "Our 2012
North America same-store sales growth of 1.6 percent and record-high average
annual restaurant sales of $1.48 million are evidence that our growth
initiatives are beginning to work, and we are optimistic about our product
pipeline and marketing plans for 2013.

"As a key part of the brand transformation, we also reinvented our price-value
offering to consumers," Brolick said. In January, Wendy's introduced a new
"Right Price, Right Size" value menu, which includes six items with suggested
pricing at 99 cents and eight additional items with suggested pricing between
$1.19 and $1.79. Wendy's is also currently promoting its Premium North Pacific
Cod Fillet sandwich for a limited time.

Brolick said the Company's product/price segmentation strategy of focusing on
core products, premium limited-time offerings, and a solid price-value
proposition with its "Right Price, Right Size" menu is translating into
positive results in early 2013. "Despite the federal payroll tax increase,
rising gasoline prices, and challenging weather conditions in certain markets,
our first quarter is off to a solid start," Brolick said.

Company Reiterates 2013 and Long-Term Outlook

For 2013, the Company reiterated its outlook for Adjusted EBITDA of $350
million to $360 million and Adjusted Earnings Per Share of $0.18 to $0.20.
Estimated 2013 Adjusted Earnings Per Share excludes $20 to $30 million of
anticipated pretax depreciation for existing assets that will be replaced as
part of the Company's Image Activation initiative. The Company expects its
total 2013 depreciation and amortization to increase 15 to 20 percent compared
to 2012.

Also included in the 2013 outlook is:

  oAverage same-store sales growth of 2.0 to 3.0 percent at Wendy's North
    America Company-operated restaurants.
  oNew restaurant development and restaurant closures as follows:

       oNorth America Company-operated: 25 openings with 20 to 30 closures
       oNorth America franchise: 40 openings with 90 to 100 closures

  oInternational: 60 openings with 15 to 20 closures
  oThe reimaging of 100 Company-operated restaurants.
  oApproximately $10 million in incremental year-over-year G&A expense
    associated with the previously announced Image Activation incentive
    program, which includes the planned reimaging of 100 franchised
    restaurants in 2013. The Company expects to record this expense in the
    fourth quarter.
  oWendy's Company-operated restaurant margin of 14.2 to 14.5 percent,
    compared to 14.0 percent in 2012. This estimate assumes the benefit of
    same-store sales increases, Image Activation sales, discontinuation of
    breakfast at certain restaurants and cost-savings initiatives. It also
    assumes a 90 to 120 basis-point impact from higher commodity costs,
    primarily in the second half of the year, driven by rising beef and
    chicken costs.
  oCapital expenditures of approximately $245 million, compared to $198
    million in 2012. This estimate includes $145 million for Image Activation
    designs at 25 new and 100 reimaged Company-operated restaurants in North
    America.

The Company's outlook for 2013 Adjusted EBITDA of $350 million to $360 million
also includes:

  oHigher year-over-year profitability in each of the first three quarters,
    with gradually declining growth rates
  oLower year-over-year profitability in the fourth quarter, due primarily to
    the anticipated franchisee incentive expense of about $10 million

"Based on the progress with our "Recipe to Win" strategy, including the
expansion of Image Activation, we continue to target long-term Adjusted EBITDA
and Adjusted Earnings Per Share growth beyond 2013 in the high single-digit to
low double-digit range," said Brolick.

Franchisees Responding to Image Activation Incentive Program

As previously announced, the Company is offering an incentive program to
qualified franchisees completing Image Activation restaurant reimages during
2013. The Company recently expanded this program to include all three of its
Image Activation tiers and has subsequently received franchisee applications
for more than 100 reimages in 2013 across all three tiers. The tiers range in
targeted investment levels from approximately $375,000 to $750,000, excluding
deferred maintenance costs. The Company expects to record approximately $10
million in incremental year-over-year G&A expense related to the incentive
program during the fourth quarter of 2013.

"We are excited about the positive response from our franchisees to the Image
Activation incentive program," said Chief Financial Officer Steve Hare. "Sales
volumes at Company-operated Image Activation restaurants have increased on
average by more than 25 percent, and we remain on track to reimage more than
600 Company-operated restaurants by the end of 2015, which is nearly half of
our Company restaurant portfolio. We expect the number of reimaged franchised
restaurants to continue to increase over the next three years, as our brand
transformation momentum continues to build."

Changes from 2012 Preliminary Results

The Company revised its 2012 fourth-quarter and full-year preliminary
unaudited results as follows:

  oReduced the estimate for the pretax charge related to discontinuing
    breakfast operations at certain restaurants by $4.0 million
  oReduced pretax depreciation and amortization by $2.0 million

The total after-tax effect of these changes increased reported fourth-quarter
and full-year net income from continuing operations by $4.0 million, or one
cent per share, in the Company's audited 2012 results compared to its 2012
preliminary unaudited results reported Jan. 16, 2013.

Strong Cash Flow and Balance Sheet Provide Capacity to Fund Growth and Return
Capital

On Feb. 13, 2013, the Company announced the declaration of its regular
quarterly cash dividend of $0.04 per share. The dividend is payable on March
15, 2013, to stockholders of record as of March 1, 2013.

During the fourth quarter of 2012, the Company's Board of Directors authorized
a 100 percent increase in the quarterly cash dividend rate from $0.02 to $0.04
per share, effective with the Company's December 2012 dividend.

During the fourth quarter, the Company's Board of Directors also authorized a
share repurchase program for up to $100 million of the Company's common stock
through Dec. 29, 2013. The common stock repurchase program allows the Company
to make repurchases as market conditions warrant and to the extent legally
permissible. The Company did not repurchase any shares during 2012 or the
first two months of 2013.

"We are confident that our balance sheet and strong cash flow provide us the
capacity to fund our Image Activation initiative and also return capital to
shareholders in the form of dividends and share repurchases," Hare said.

Same-Store Sales Reporting Methodology

As previously announced, the Company revised its reporting methodology for
same-store sales, beginning with the first quarter of 2012, to more accurately
reflect same-store sales performance, including the impact of its new and
remodeled restaurants.

Using the new methodology, the Company calculates same-store sales beginning
after new restaurants have been open for at least 15 continuous months and
after remodeled restaurants have been reopened for three continuous months.
The calculation of same-store sales previously began after a restaurant had
been open for at least 15 continuous months and as of the beginning of the
previous fiscal year.

Under the new methodology, same-store sales at North America Company-operated
restaurants decreased 0.2 percent for the fourth quarter and increased 1.6
percent for the full year. Under the old methodology, same-store sales at
North America Company-operated restaurants would have decreased approximately
0.4 percent for the fourth quarter and would have increased approximately 1.5
percent for the full year. The new methodology had virtually no impact on
results reported prior to 2012.

Conference Call and Webcast Scheduled for 10 a.m. Today, Feb. 28

The Company will host a conference call today at 10 a.m. ET, with a
simultaneous webcast from the investor relations section of the Company's
website at www.aboutwendys.com. Hosting the call will be President and Chief
Executive Officer Emil Brolick, Chief Financial Officer Steve Hare and Chief
Communications Officer John Barker. The live conference call will be available
at (877) 572-6014 or, for international callers, at (281) 913-8524.

An archived webcast with the accompanying slides will be available on the
Company's website at www.aboutwendys.com.

First-Quarter Release and Conference Call Scheduled for May 8

The Company plans to release its first-quarter results before the market opens
on May 8 and host a conference call at 10 a.m. ET the same day with a
simultaneous webcast from the investor relations section of the Company's Web
site at www.aboutwendys.com. The live conference call will be available at
(877) 572-6014 or, for international callers, at (281) 913-8524.

Forward-Looking Statements

This news release contains certain statements that are not historical facts,
including, most importantly, information concerning possible or assumed future
results of operations of The Wendy's Company and its subsidiaries
(collectively, 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; 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 the Company's 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.The Company's actual
results, performance and achievements may differ materially from any future
results, performance or achievements expressed in or implied by the
forward-looking statements.

For all forward-looking statements, the Company claims the protection of the
safe harbor for forward-looking statements contained in the Reform Act. Many
important factors could affect future results and could cause those results to
differ materially from those expressed in or implied by the forward-looking
statements.Such factors, all of which are difficult or impossible to predict
accurately, and many of which are beyond the Company's 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, high
unemployment and decreased consumer spending levels;

(3) the ability to effectively manage the acquisition and disposition of
restaurants;

(4) cost and availability of capital;

(5) cost fluctuations associated with food, supplies, energy, fuel,
distribution or labor;

(6) the financial condition of the Company's franchisees;

(7) food safety events, including instances of food-borne illness involving
the Company or its supply chain;

(8) 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;

(9) the effects of negative publicity that can occur from increased use of
social media;

(10) the availability of suitable locations and terms for the development of
new restaurants;

(11)risks associated with the Image Activation program;

(12) adoption of new, or changes in, laws, regulations or accounting policies
and practices;

(13)changes in debt, equity and securities markets;

(14)goodwill and long-lived asset impairments;

(15)changes in interest rates;

(16) expenses and liabilities for taxes related to periods up to the date of
sale of Arby's as a result of the indemnification provisions of the Arby's
Purchase and Sale Agreement; and

(17) other factors cited in the Company's news releases, public statements
and/or filings with the Securities and Exchange Commission, including those
identified in the "Risk Factors" sections of the Company's Forms 10-K and
10-Q.

The Company's franchisees are independent third parties that the Company does
not control. Numerous factors beyond the control of the Company and its
franchisees may affect new restaurant openings. Accordingly, there can be no
assurance that commitments under development agreements with franchisees will
result in new restaurant openings.

All future written and oral forward-looking statements attributable to the
Company or any person acting on its 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 the
Company to predict these events or their impact. The Company assumes no
obligation to update forward-looking statements as a result of new
information, future events or developments, except as required by federal
securities laws. The Company does not endorse any projections regarding future
performance that may be made by third parties.

Disclosure Regarding Non-GAAP Financial Measures

Adjusted EBITDA from continuing operations and Adjusted Earnings Per Share
from continuing operations, which exclude certain expenses, net of certain
benefits, detailed in the reconciliation tables that accompany this release,
are used by the Company as performance measures for benchmarking against the
Company's peers and competitors, and as internal measures of business
operating performance. The Company believes Adjusted EBITDA from continuing
operations and Adjusted Earnings Per Share from continuing operations provide
a meaningful perspective of the underlying operating performance of the
Company's current business. Adjusted EBITDA from continuing operations and
Adjusted Earnings Per Share from continuing operations are not recognized
terms under U.S. Generally Accepted Accounting Principles ("GAAP").

Because all companies do not calculate Adjusted EBITDA from continuing
operations and Adjusted Earnings Per Share from continuing operations (and
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
such measures and should not be considered as alternative measures of income
from continuing operations or earnings per share from continuing operations.

Because certain income statement items needed to calculate income from
continuing operations vary from quarter to quarter, the Company is unable to
provide projections of income from continuing operations or earnings per share
from continuing operations, or a reconciliation of projected Adjusted EBITDA
from continuing operations to projected income from continuing operations or
projected Adjusted Earnings Per Share from continuing operations to projected
earnings per share from continuing operations.

The Company's presentation of Adjusted EBITDA from continuing operations and
Adjusted Earnings Per Share from continuing operations does not replace the
presentation of the Company's financial results in accordance with GAAP.

About The Wendy's Company

The Wendy's Company is the world's third-largest quick-service hamburger
company. The Wendy's system includes more than 6,500 franchise and
Company-operated restaurants in the United States and 27 countries and U.S.
territories worldwide. For more information, visit aboutwendys.com or
wendys.com.



The Wendy's Company and Subsidiaries
Consolidated Statements of Operations
Three and Twelve Month Periods Ended December 30, 2012 and January 1, 2012
(In Thousands Except Per Share Amounts)
                      Three Months                    Twelve Months
                      2012             2011             2012         2011
                      (Unaudited)    (Unaudited)
Revenues:
Sales               $    553,943  $    538,496  $          $  
                                                        2,198,323    2,126,544
Franchise revenues  75,936           76,522           306,919      304,814
                      629,879          615,018          2,505,242    2,431,358
Costs and expenses:
Cost of sales       464,276          454,440          1,881,248    1,816,109
General and          69,984           77,243           287,808      292,390
administrative
Depreciation and     36,840           32,020           146,976      122,992
amortization
Impairment of        13,316           4,621            21,097       12,883
long-lived assets
Facilities
relocation costs and  13,470           14,949           41,031       45,711
other transactions
Other operating,     (264)            2,465            4,335        4,152
net
                      597,622          585,738          2,382,495    2,294,237
Operating profit    32,257           29,280           122,747      137,121
Interest expense    (20,801)         (28,195)         (98,604)     (114,110)
Loss on early
extinguishment of     -                -                (75,076)     -
debt
Investment income,   6,786            296              36,243       484
net
Other, net          551              239              1,565        945
Income (loss) from
continuing operations
before income taxes   18,793           1,620            (13,125)     24,440
and
 noncontrolling
interests
Benefit from
(provision for)       6,616            2,670            21,083       (6,528)
income taxes
Income from
continuing            25,409           4,290            7,958        17,912
operations
Discontinued
operations:
Income (loss) from
discontinued          1,167            (356)            1,951        762
operations, net of
income taxes
(Loss) income on
disposal of
discontinued          (188)            50               (442)        (8,799)
operations, net of
income taxes
Net income (loss)
from discontinued     979              (306)            1,509        (8,037)
operations
Net income          26,388           3,984            9,467        9,875
Net income
attributable to       -                -                (2,384)      -
noncontrolling
interests
Net income           $            $           $       $    
attributable to The   26,388           3,984            7,083         9,875
Wendy's Company
Basic and diluted
income (loss) per
share attributable to
The Wendy's Company:
Continuing           $          $          $       $    
operations           0.07             0.01              0.02         0.04
Discontinued         0.00             (0.00)           $       (0.02)
operations                                              0.00
Net income          $          $          $       $    
                      0.07             0.01              0.02         0.02
Number of shares
used to calculate     391,013          389,022          390,275      405,224
basic income (loss)
per share
Number of shares
used to calculate     392,640          391,992          392,140      407,180
diluted income (loss)
per share
                                                        December    January
                                                        30,         1,
Balance Sheet Data:                                   2012         2012
Cash and cash                                          453,361      475,231
equivalents
Total assets                                          4,303,199    4,289,129
Long-term debt,
including current                                       1,457,562    1,356,999
portion
Total stockholders'                                    1,985,855    1,996,069
equity







Reconciliation of Adjusted EBITDA from Continuing Operations
to Net Income Attributable to The Wendy's Company
(Unaudited)
($ in Thousands)               Three Months         Twelve Months
                               2012       2011        2012         2011
Adjusted EBITDA from           $ 95,883  $ 80,870   $ 333,328    $ 331,055
continuing operations
(Less) plus:
Depreciation and amortization  (36,840)   (32,020)    (146,976)    (122,992)
Impairment of long-lived       (13,316)   (4,621)     (21,097)     (12,883)
assets
Costs associated with closed
restaurants in other operating -          -           (1,477)      -
 expense, net
Facilities relocation costs    (13,470)   (14,949)    (41,031)     (45,711)
and other transactions
Arby's indirect corporate
overhead in general and        -          -           -            (14,623)
 administrative (G&A)
SSG purchasing cooperative     -          -           -            2,275
expense reversal in G&A
Operating profit               32,257     29,280      122,747      137,121
Interest expense               (20,801)   (28,195)    (98,604)     (114,110)
Loss on early extinguishment   -          -           (75,076)     -
of debt
Investment income, net         6,786      296         36,243       484
Other, net                     551        239         1,565        945
Income (loss) from continuing
operations before              18,793     1,620       (13,125)     24,440
 income taxes and
noncontrolling interests
Benefit from (provision for)   6,616      2,670       21,083       (6,528)
income taxes
Income from continuing         25,409     4,290       7,958        17,912
operations
Discontinued operations:
Income (loss) from
discontinued operations, net   1,167      (356)       1,951        762
of income taxes
(Loss) income on disposal of
discontinued operations, net   (188)      50          (442)        (8,799)
of income taxes
Net income (loss) from         979        (306)       1,509        (8,037)
discontinued operations
Net income                     26,388     3,984       9,467        9,875
Net income attributable to     -          -           (2,384)      -
noncontrolling interests
Net income attributable to The $ 26,388  $  3,984  $   7,083  $   9,875
Wendy's Company







Reconciliation of Adjusted Income and Adjusted Earnings Per Share from Continuing
Operations to Net Income
and Earnings Per Share Attributable to The Wendy's Company
(In Thousands Except Per Share Amounts)
(Unaudited)
(Unaudited)    Three Months                       Twelve Months
($ in
Thousands,      2012             2011              2012              2011
Except per
Share Amounts)
                         Per               Per               Per               Per
                         share             share             share             share
Adjusted
income and
adjusted        $             $              $              $   
earnings per    33,629  $ 0.09  16,425   $ 0.04  65,316   $ 0.17  62,080   $ 0.15
share from
continuing
operations
(Less) plus:
Loss on early
extinguishment  -        -       -         -       (46,547)  (0.12)  -         -
of debt
Facilities
relocation
costs and       (8,311)  (0.02)  (9,288)   (0.02)  (25,349)  (0.07)  (28,514)  (0.07)
other
transactions
Gain on sale
of investment,  -        -       -         -       17,978    0.05    -         -
net
Impairment of
long-lived      (8,216)  (0.02)  (2,847)   (0.01)  (13,017)  (0.04)  (7,936)   (0.02)
assets
Benefits of
prior years'    5,439    0.01    -         -       7,620     0.02    -         -
tax matters
Dividend from   2,868    0.01    -         -       2,868     0.01    -         -
Arby's
Costs
associated
with closed
restaurants in  -        -       -         -       (911)     (0.00)  -         -
other
operating
expense, net
Arby's
indirect
corporate
overhead in     -        -       -         -       -         -       (9,140)   (0.02)
general and
administrative
(G&A)
SSG purchasing
cooperative     -        -       -         -       -         -       1,422     0.00
expenses in
G&A
 Total        (8,220)  (0.02)  (12,135)  (0.03)  (57,358)  (0.15)  (44,168)  (0.11)
adjustments
Income from
continuing      25,409   0.07    4,290     0.01    7,958     0.02    17,912    0.04
operations
Net income
(loss) from     979      0.00    (306)     (0.00)  1,509     0.00    (8,037)   (0.02)
discontinued
operations
Net income      26,388   0.07    3,984     0.01    9,467     0.02    9,875     0.02
Net income
attributable
to              -        -       -         -       (2,384)   (0.00)  -         -
noncontrolling
interests
Net income and
earnings per
share           $     $ 0.07  $      $ 0.01  $      $ 0.02  $      $ 0.02
attributable    26,388           3,984           7,083           9,875
to The Wendy's
Company

SOURCE The Wendy's Company

Website: http://www.aboutwendys.com
Contact: Media and Investor Contacts: John Barker, +1-614-764-3044 or
john.barker@wendys.com; Dave Poplar, +1-614-764-3311 or
david.poplar@wendys.com
 
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