full text:
2007 income from continuing operations increased 134% to $86.6 million
2007 adjusted EBITDA from continuing operations increased 38% to $305.4 million
Wendy's International, Inc. (NYSE: WEN) today announced its preliminary, unaudited financial results for the full year and fourth quarter of 2007, reflecting same-store sales increases for the year, cost controls and improving restaurant margins.
Including full-year pre-tax expenses related to the Board of Director's Special Committee of $24.7 million and $9.8 million of pre-tax restructuring charges (as used throughout, restructuring charges include pension settlement charges), the Company reported for the full year of 2007:

    --  Income from continuing operations of $86.6 million, up 134.0% compared
        to $37.0 million in 2006;
    --  Diluted earnings per share (EPS) from continuing operations of $0.96,
        up 200.0% from $0.32 per share in 2006; and
    --  Earnings before interest, taxes, depreciation and amortization
        (EBITDA) from continuing operations of $270.9 million, up 65.2% from
        $164.0 million in 2006.

Excluding 2007 expenses related to the Board's Special Committee and restructuring charges and excluding 2006 restructuring charges, incremental advertising expenses and lost joint venture income, the Company reported for the full year of 2007:

    --  Adjusted income from continuing operations of $108.0 million, up 50.0%
        from $72.0 million in 2006;
    --  Adjusted diluted EPS from continuing operations of $1.20, up 93.5%
        from $0.62 per share in 2006; and
    --  Adjusted EBITDA from continuing operations of $305.4 million, up 38.4%
        from $220.7 million in 2006.

    The Company met its revised 2007 full-year EBITDA guidance of $295 million
to $315 million, and its revised 2007 full-year EPS guidance of $1.09 to
$1.23, which excluded expenses related to the Board's Special Committee and
restructuring charges.


                          Including expenses           Excluding expenses (i)
                        Full-year     Full-year       Full-year      Full-year
                          2007          2006            2007           2006
    Income from
     continuing
     operations     $86.6 million $37.0 million  $108.0 million  $72.0 million
    Diluted EPS
     from continuing
     operations             $0.96         $0.32           $1.20          $0.62
    EBITDA from
     continuing            $270.9        $164.0          $305.4         $220.7
     operations           million       million         million        million

    (i) See reconciliations below.  For 2007, adjusted income from continuing
        operations, EBITDA and EPS excludes expenses related to the Board's
        Special Committee and restructuring charges.  For 2006, adjusted
        income from continuing operations, EBITDA and EPS excludes
        restructuring charges, incremental advertising expenses and lost joint
        venture income.



    2007 Full-Year Highlights - U.S. EBITDA store margins up 210 basis points
    --  U.S. company-operated restaurant EBITDA margins improved 210 basis
        points to 11.0% in 2007, reflecting slightly positive full-year sales,
        improved menu management (menu price increases and favorable shifts in
        product mix) and labor efficiencies. The 210 basis point improvement
        was achieved despite higher commodity costs which negatively impacted
        U.S. margins by 90 basis points.
    --  Total company-operated restaurant EBITDA margins improved 180 basis
        points to 10.7% in 2007, compared to 8.9% one year ago.  This includes
        U.S., Canada and International operations.
    --  As previously announced, annual same-store sales at U.S. franchise
        restaurants increased 1.4%, compared to a 0.6% increase in 2006.
        Wendy's franchisees have produced seven consecutive quarters of
        positive same-store sales. Annual same-store sales at U.S. company-
        operated restaurants increased 0.9%, compared to a 0.8% increase in
        2006.
    --  The total number of system-wide Wendy's® restaurants as of December
        30, 2007, was 6,645, compared to 6,673 at year-end 2006.  This
        reflects the opening of 92 restaurants and the closure of 120
        restaurants.

Company made significant progress in 2007
"I am proud of our restaurant crews, franchisees and company employees for what we accomplished in 2007," said Chief Executive Officer and President Kerrii Anderson. "We executed our strategic plan, implemented many initiatives to drive the business and made tough decisions to position Wendy's for future growth.
"We produced significantly improved company store operating margins and earnings growth in the face of an incredibly challenging environment, with rising commodities and the distraction of the Special Committee process. Our goal was to deliver EBITDA in the range of $295-$315 million for the year, and we achieved that objective with EBITDA of $305 million, up 38% over the previous year," Anderson said.
Chief Financial Officer Jay Fitzsimmons said: "Our improved financial performance reflected modest same-store sales growth, higher average check and excellent expense control by our employees. There is no question that our business is stronger today than a year ago."
Company executing Phase 2 of its Strategic Plan
The Company recently launched Phase 2 of its strategic plan, which focuses on further growth in same-store sales and earnings in 2008.
"We have a powerful brand, and our objective in 2008 is to re-ignite sales growth and drive quality and innovation throughout our business," Anderson said. "In addition to a strong new product lineup for 2008 and a re-energized focus on restaurant operations, we are excited about our new advertising that highlights Wendy's unique competitive advantage of quality. Today, we are launching our 'Waaaay Better' campaign, and the hero of our new advertising will be our quality food."
The Company's evolution of its advertising approach is based on extensive consumer research over the last eight months, working in close collaboration with its agency partners and franchise advertising committee.
"Our new campaign leverages Wendy's red-hair iconography, but does so in a way that is more genuine and true to our brand," said Anderson. "Each television spot opens and closes with an animated version of our familiar logo - the enduring image of Wendy, a red-headed, little girl. Our Wendy icon stands for wholesome authenticity and honest quality. It's one of the most powerful, under-used assets in the consumer world today."
2007 4th Quarter Financial Highlights - U.S. EBITDA store margins up 120 basis points
Including fourth-quarter pre-tax expenses related to the Board's Special Committee of $6.5 million and $0.4 million of pre-tax restructuring charges, the Company reported for the fourth-quarter of 2007:

    --  Income from continuing operations of $14.1 million, up 42.4% from $9.9
        million in the fourth quarter of 2006;
    --  Diluted EPS from continuing operations of $0.16, up 77.8% from $0.09
        per share in the fourth quarter of 2006; and
    --  EBITDA from continuing operations of $50.1 million, up 64.3% from
        $30.5 million in the fourth quarter of 2006.

Excluding expenses related to the Board's Special Committee and restructuring charges, the Company reported for the fourth-quarter of 2007:

    --  Adjusted income from continuing operations of $18.4 million, up 24.3%
        from $14.8 million in the fourth quarter of 2006;
    --  Adjusted diluted EPS from continuing operations of $0.21 in the fourth
        quarter of 2007, up 50.0% from $0.14 per share for the fourth quarter
        of 2006; and
    --  Adjusted EBITDA from continuing operations of $57.0 million, up 48.4%
        from $38.4 million in the fourth quarter of 2006.

U.S. company-operated restaurant EBITDA margins improved 120 basis points to 10.1% in the fourth quarter of 2007, compared to 8.9% a year ago. The 120 basis point improvement was achieved despite higher commodity costs which negatively impacted U.S. margins by 180 basis points.
Company-operated restaurant EBITDA margins improved 140 basis points to 9.8% in the fourth quarter of 2007, compared to 8.4% in the fourth quarter of 2006. This includes U.S., Canada and International operations.
As previously announced, fourth-quarter same-store sales at U.S. franchise restaurants increased 0.2%, compared to an increase of 2.7% a year ago, and fourth-quarter same-store sales at U.S. company-operated restaurants decreased 0.8%, compared to an increase of 3.1% in the fourth quarter of 2006.

                           Including expenses           Excluding expenses (i)
                         4Q 2007       4Q 2006          4Q 2007       4Q 2006
    Income from
     continuing
     operations    $14.1 million  $9.9 million    $18.4 million $14.8 million
    Diluted EPS from
     continuing
     operations            $0.16         $0.09            $0.21         $0.14
    EBITDA from
     continuing
     operations    $50.1 million $30.5 million    $57.0 million $38.4 million

    (i) See reconciliations below.  Adjusted income from continuing
        operations, EBITDA and EPS excludes expenses related to the Board's
        Special Committee and restructuring charges.

Board approves 120th consecutive quarterly dividend
The Board of Directors approved a quarterly dividend of 12.5 cents per share, payable February 29, 2008 to shareholders of record as of February 14, 2008. The dividend payment will represent the Company's 120th consecutive quarterly dividend.
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