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WENDY'S PROFITS ROSE 40 PERCENT IN 4TH QUARTER; 31 PERCENT FOR THE YEAR

 WENDY'S PROFITS ROSE 40 PERCENT IN 4TH QUARTER;
 31 PERCENT FOR THE YEAR
 DUBLIN, Ohio, Feb. 17 /PRNewswire/ -- Wendy's International, Inc. (NYSE: WEN) reported dramatic increases in profits for the fourth quarter and year ended Dec. 29, 1991.
 Net income for the quarter was $10.9 million, a 40 percent increase over the $7.8 million posted in the same quarter of 1990. Earnings per share jumped 38 percent to $.11 vs. $.08.
 For the entire year, net income rose 31 percent to $51.3 million vs. $39.3 million. Earnings per share were $.52, up 27 percent over the $.41 posted for 1990.
 The board of directors approved a quarterly dividend of $.06 per share, payable March 12 to shareholders of record Feb. 27.
 Revenues for the fourth quarter were $270 million and $1.06 billion for the year, vs. $249.5 million and $1.01 billion, respectively.
 "We had a good year," said James W. Near, chairman and CEO, adding, "It was our best since 1985.
 "We stayed focused on the things we do best -- deliver fresh, quality food and fast, friendly service in clean, pleasant restaurants. Our results are a tribute to the thousands of employees and franchisees who are passionately dedicated to exceeding our customers' expectations," he added.
 "Our challenge is to keep the momentum going in this tough economy. We know we must continue to improve to stay ahead of the competition."
 Sales Hit Records
 Average net sales per domestic company restaurant rose 5 percent for the year to $874,000, tying the company record sales average. Twenty-two of the weeks in 1991 were record sales weeks. The fourth quarter was the 12th consecutive quarter of year-to-year average net sales increases.
 Near said restaurant operating margins for the year were 13 percent of sales, the highest in five years, and a half-percent over 1990.
 Systemwide sales, or sales of both company and franchise restaurants, reached a record $3.22 billion for the year, compared with $3.07 billion.
 Near said a key factor in Wendy's improved performance has been "sustained increases in per-store sales." He explained that customer transactions rose more than 5 percent for the year while price increases totaled less than one-half percent.
 "We are attracting more customers into our restaurants with great tasting sandwiches like Chicken Cordon Bleu and Dave's Deluxe, our Super Value Menu which at 99 cents is very appealing in today's economy, and the best advertising in the industry headed by our founder, Dave Thomas," he added.
 "Dave continues to strike a responsive chord in Middle America. His warmth and sincerity have added a friendly personality to our advertising, which has had a major impact on sales."
 Consumer awareness of Wendy's advertising reached an all-time high during the fourth quarter of 1991, surpassing the phenomenal success of the Where's The Beef campaign. Nearly 80 percent of consumers polled could remember seeing a Wendy's television commercial in the past 30 days.
 Aggressive Growth Planned
 Near said the company plans to build future sales by increasing existing restaurant sales and opening new restaurants. Wendy's had 77 more restaurants open systemwide at the end of 1991 vs. 1990. The company plans to open at least 200 restaurants systemwide this year and reach 5,000 restaurants by the mid-1990's. At year-end, there were 3,804 Wendy's Old Fashioned Hamburgers restaurants worldwide, including 1,162 operated by the company.
 To finance its aggressive growth plans, Wendy's raised $100 million in 1991 through a convertible debenture offering. The company plans to invest about $125 million this year to finance new company and franchise restaurant development.
 WENDY'S INTERNATIONAL, INC. AND SUBSIDIARIES
 CONSOLIDATED STATEMENT OF INCOME
 (In thousands except per share data)
 Quarters Ended Year-to-Date Ended
 Dec. 29 Dec. 30 Dec. 29 Dec. 30
 1991 1990 1991 1990
 Revenues:
 Retail sales $245,975 $228,195 $ 962,793 $ 922,181
 Royalties 21,161 19,414 85,518 79,994
 Other 2,551 1,916 12,070 8,702
 Total 269,687 249,525 $1,060,381 $1,010,877
 Costs & expenses:
 Cost of sales 143,397 134,215 563,245 545,682
 Company restaurant
 operating costs 70,098 65,203 274,312 261,018
 General and admini-
 strative expenses 22,183 20,787 76,077 75,956
 Depreciation and
 amortization of
 property and
 equipment 14,425 13,942 56,071 55,125
 Interest, net 3,119 3,172 12,303 12,360
 Total 253,222 237,319 982,008 950,141
 Income before income
 taxes and extra-
 ordinary gain (loss) 16,465 12,206 78,373 60,736
 Income taxes 5,598 4,454 26,672 22,152
 Income before extra-
 ordinary gain (loss) 10,867 7,752 51,701 38,584
 Extraordinary gain
 (loss) on early
 extinguishment of
 debt (net of income
 taxes (benefit) of
 $5, $(242), $426) --- 7 (396) 696
 Net income $ 10,867 $ 7,759 $ 51,305 $ 39,280
 Per share data:
 Income before
 extraordinary
 gain (loss) $.11 $.08 $.52 $.40
 Extraordinary
 gain (loss) --- --- --- .01
 Net income $.11 $.08 $.52 $.41
 Dividends $.06 $.06 $.24 $.24
 Weighted average
 shares outstanding 99,464 97,037 99,386 96,707
 Systemwide sales: $817,000 $761,000 $3,224,000 $3,070,000
 Average net sales per
 domestic restaurant:
 Company $217,000 $209,000 $874,000 $832,000
 Franchise 211,000 199,000 843,000 803,000
 Total domestic 213,000 202,000 852,000 811,000
 Number of restaurants:
 Company 1,162 1,070 1,162 1,070
 Franchise 2,642 2,657 2,642 2,657
 Total 3,804 3,727 3,804 3,727
 -0- 2/17/92
 /CONTACT: Denny Lynch of Wendy's International, 614-764-3413/
 (WEN) CO: Wendy's International, Inc. ST: Ohio IN: LEI SU: ERN DIV


BN-CF -- CL002 -- 0552 02/17/92 11:25 EST
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Date:Feb 17, 1992
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