Wendy's First Quarter Sales and EPS Trending Above

Expectations DUBLIN, Ohio (ots-PRNewswire) - Wendy's International, Inc.(NYSE: WEN) today announced that sales for the first quarter,which ends on April 4, 1999, are trending stronger than expected. Average unit volumes (AUVs) at Wendy's(R) U.S. companyoperated restaurants have increased about 14% quarter to datethrough March 14 and have increased for 34 consecutive months.Wendy's same-store sales are up about 10% quarter to date. TimHortons' same-store sales in Canada have increased about 10%quarter to date. Management expects the strong sales and aggressive costcontrols to produce better than planned first quarter earnings. Total diluted earnings per share for the first quarter areexpected to be $0.23 or $0.24, a 28% to 33% increase over $0.18 ayear ago. Total diluted EPS for the first quarter is expected toinclude about $0.01 in gains from the sale of real estate,franchising and fees. Base EPS (total diluted EPS less gains) isexpected to be $0.22 to $0.23 for the quarter, a 22% to 28%increase over last year. In the first quarter a year ago, totaldiluted EPS included an insignificant amount of gains. PROJECTED 1999 1ST QUARTER DILUTED EPS V. ACTUAL 1998

1Q-1999

1Q-1998 Base EPS

$0.22 to 0.23

$0.18 Gains

$0.01

$0.00 Total EPS

$0.23 to 0.24

$0.18 "Sales at Wendy's North America and Tim Hortons(R) Canada areabove plan this quarter, building off the positive momentum fromthe second half of 1998," said Chairman, CEO and President GordonF. Teter. "Improved restaurant operations, balanced and effectivemarketing, and quality products are driving the sales increases.Customer response to our Monterey Ranch Chicken Sandwichpromotion at Wendy's and the new Cafe Mocha drink at Tim Hortonshas been very favorable. "With the strong sales trends, we expect significantimprovement in first quarter domestic Wendy's margins versus ayear ago despite ongoing labor cost pressures," Teter said."Also, we are pleased with the results from our store-levelproductivity programs and effective control of general andadministrative costs." Due to the strong quarter, management is raising its 1999 BaseEPS growth goal to a range of 15% to 17.5%, up from thepreviously announced goal of 12% to 15%. Base EPS was $1.03 in1998, excluding non-recurring charges. The Company expects atotal of $.06 to $.07 in gains during 1999 from the sale of realestate, franchising and fees. Management's long-term goal forBase EPS growth remains 12% to 15%. The Company will release complete results for the quarter onMay 4, the same day as Wendy's Annual Meeting of Shareholders inColumbus, Ohio.

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SECURITIES LITIGATION REFORM ACT OF 1995 Certain information in this news release, particularlyinformation regarding future economic performance and finances,and plans, expectations and objectives of management, is forwardlooking. The following factors, in addition to other possiblefactors not listed, could affect the Company's actual results andcause such results to differ materially from those expressed inforward-looking statements: Competition: The quick-service restaurant industry isintensely competitive with respect to price, service, location,personnel, and type and quality of food. The Company and itsfranchisees compete with international, regional, and localorganizations primarily through the quality, variety, and valueperception of food products offered. The number and location ofunits, quality and speed of service, attractiveness offacilities, effectiveness of advertising and marketing programs,and new product development by the Company and its competitorsare also important factors. The Company anticipates that intensecompetition will continue to focus on pricing. Certain of theCompany's competitors have substantially larger marketingbudgets. Economic, Market and Other Conditions: The quick-servicerestaurant industry is affected by changes in national, regional,and local economic conditions, consumer preferences and spendingpatterns, demographic trends, consumer perceptions of foodsafety, weather, traffic patterns, and the type, number andlocation of competing restaurants. Factors such as inflation,food costs, labor and benefit costs, legal claims, and theavailability of management and hourly employees also affectrestaurant operations and administrative expenses. The ability ofthe Company and its franchisees to finance new restaurantdevelopment, improvements and additions to existing restaurants,and the acquisition of restaurants from, and sale of restaurantsto franchisees is affected by economic conditions, includinginterest rates and other government policies impacting land andconstruction costs and the cost and availability of borrowedfunds. Importance of Locations: The success of Company and franchisedrestaurants is dependent in substantial part on location. Therecan be no assurance that current locations will continue to beattractive, as demographic patterns change. It is possible theneighborhood or economic conditions where restaurants are locatedcould decline in the future, thus resulting in potentiallyreduced sales in those locations. Government Regulation: The Company and its franchisees aresubject to various federal, state, and local laws affecting theirbusiness. The development and operation of restaurants depend toa significant extent on the selection and acquisition of suitablesites, which are subject to zoning, land use, environmental,traffic, and other regulations. Restaurant operations are alsosubject to licensing and regulation by state and localdepartments relating to health, sanitation and safety standards,federal and state labor laws (including applicable minimum wagerequirements, overtime, working and safety conditions, andcitizenship requirements), federal and state laws which prohibitdiscrimination, and other laws regulating the design andoperation of facilities, such as the Americans with DisabilitiesAct of 1990. Changes in these laws and regulations, particularlyincreases in applicable minimum wages, may adversely affectfinancial results. The operation of the Company's franchiseesystem is also subject to regulation enacted by a number ofstates and rules promulgated by the Federal Trade Commission. TheCompany cannot predict the effect on its operations, particularlyon its relationship with franchisees, of the future enactment ofadditional legislation regulating the franchise relationship. Growth Plans: The Company plans to increase the number ofsystemwide Wendy's and Tim Hortons restaurants open or underconstruction. There can be no assurance that the Company or itsfranchisees will be able to achieve growth objectives or that newrestaurants opened or acquired will be profitable. The opening and success of restaurants depends on variousfactors, including the identification and availability ofsuitable and economically viable locations, sales levels atexisting restaurants, the negotiation of acceptable lease orpurchase terms for new locations, permitting and regulatorycompliance, the ability to meet construction schedules, thefinancial and other development capabilities of franchisees, theability of the Company to hire and train qualified managementpersonnel, and general economic and business conditions. International Operations: The Company's business outside ofthe United States is subject to a number of additional factors,including international economic and political conditions,differing cultures and consumer preferences, currency regulationsand fluctuations, diverse government regulations and tax systems,uncertain or differing interpretations of rights and obligationsin connection with international franchise agreements and thecollection of royalties from international franchisees, theavailability and cost of land and construction costs, and theavailability of experienced management, appropriate franchisees,and joint venture partners. Although the Company believes it hasdeveloped the support structure required for internationalgrowth, there is no assurance that such growth will occur or thatinternational operations will be profitable. Disposition of Restaurants: The disposition of Company-operated restaurants to new or existing franchisees is part ofthe Company's strategy to develop the overall health of thesystem by acquiring restaurants from, and disposing ofrestaurants to, franchisees where prudent. The expectation ofgains from future dispositions of restaurants depends in part onthe ability of the Company to complete disposition transactionson acceptable terms. Transactions to Improve Return on Investment: The Company ownsseveral notes receivable issued by franchisees. The Company hasentered into an agreement with a third party lender that permitsthe lender to contact franchisees, offer to refinance notes andenter into commitments to refinance such notes on or before March31, 1999. The Company expects that a substantial portion of thenotes will be refinanced. However, franchisees could decide tonot refinance for various reasons, including changes in economic,credit market or other conditions, and the Company cannot requirefranchisees to refinance. In addition, the timing of refinancingtransactions would be controlled by the lender and franchisees.As a result, there is no assurance as to when the Company couldreceive cash proceeds or realize income from refinancingtransactions. The sale of real estate previously leased to franchisees isgenerally part of the program to improve the Company's return oninvested capital. There are various reasons why the program mightbe unsuccessful, including changes in economic, credit market,real estate market or other conditions, and the ability of theCompany to complete sale transactions on acceptable terms and ator near the prices estimated as attainable by the Company. Year 2000: The Company anticipates timely completion of itsprogram to address year 2000 issues. However, if the newinformation systems are not implemented on a timely basis,modifications to existing systems cannot be accomplished on atimely basis, information technology resources do not remainavailable, or other unanticipated events occur, there would beadverse financial and operational effects on the Company. Theamount of these effects cannot be ascertained at this time. Although the Company has not been informed of material year2000 issues by third parties with which it has a materialrelationship or franchisees, there is no assurance that theseentities will be year 2000 compliant on a timely basis.Unanticipated failures or significant delays in furnishingproducts or services by third parties or general publicinfrastructure service providers, or the inability of franchiseesto perform sales reporting and financial management functions orto make timely payments to the Company or suppliers, could have amaterial adverse effect on results of operations, financialcondition and/or liquidity. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date thereof. TheCompany undertakes no obligation to publicly release anyrevisions to the forward-looking statements contained in thisrelease, or to update them to reflect events or circumstancesoccurring after the date of this release, or to reflect theoccurrence of unanticipated events. ots Original Text Service:Wendy's International, Inc. Internet: http://www.newsaktuell.deContact: John D. Barker of Wendy's, 614-764-3044 Web site:http://www.wendys.com

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