Wendy's Reports Second Quarter Sales and EPS Above

Expectations / Management Raising 1999 Base EPS Growth Goal to18% to 21% Dublin, Ohio (PROTEXT) - Wendy's International, Inc. (NYSE:WEN) today announced that sales for the second quarter, whichended on July 4, 1999, were stronger than expected. * Average unit volumes (AUVs) at Wendy's(R) companyrestaurants in the United States increased about 10% and haveincreased for 38 consecutive months. * Same-store sales at Wendy's company units in the U.S. wereup about 8%. * Tim Hortons' same-store sales in Canada were up about 10%. Management expects the robust sales and cost controls toproduce better than planned second quarter earnings. On apreliminary basis, total diluted earnings per share for thesecond quarter are expected to be $0.39, a 15% increase from$0.34 reported a year ago. Total diluted EPS for the quarter isexpected to include about $0.04 in asset gains from the sale ofreal estate, franchising and fees, compared to $0.02 in assetgains in the same quarter a year ago. Base EPS (total diluted EPS less asset gains) is expected tobe $0.35 for the quarter, up about 21% from $0.29 in the same 13-week quarter a year ago. The reported Total EPS results for thesecond quarter a year ago included 14 weeks and $0.03 in EPS fromthe extra accounting week (see chart below). The Company will issue complete results for the quarter onJuly 28, 1999. PRELIMINARY 1999 2ND QUARTER DILUTED EPS V. ACTUAL 1998

2Q 1999

2Q 1998

Increase Base EPS

$0.35

$0.29

21% Extra Week

--

$0.03

-- Asset Gains

$0.04

$0.02

-- Total EPS

$0.39

$0.34

15% Due to the strong results year to date, management is raisingits Base EPS growth goal for 1999 to a range of 18% to 21%, upfrom a previous range of 16% to 18%. Base EPS was $1.03 in 1998excluding non-recurring charges. Total EPS for 1999 is expectedto include a total of $0.06 to $0.07 in asset gains. "We are encouraged with the overall progress at Wendy's andTim Hortons(R) and our ability to build on the positive momentumfrom the past two quarters," said Chairman, CEO and PresidentGordon F. Teter. "Our performance is attributable to improvingrestaurant operations, offering customers an array of qualityproducts and executing effective marketing strategies. At thesame time, we have made significant progress on long-termstrategies to improve shareholder return." The Company continued to emphasize quality products andbalanced marketing during the second quarter. Customers respondedfavorably during the quarter to Wendy's "Cheddar Lovers' BaconCheeseburger" and Super Value Menu promotions and the systemwideintroduction of an iced cappuccino drink at Tim Hortons. In addition, Wendy's Service Excellence program is beingexpanded from the Western U.S. region to the rest of the U.S. andCanada. "Service Excellence has delivered significant incrementalsales gains and improved speed of service at our pick-up windowsin the Western region," said Teter. "We look forward to thepositive sales and service impact in our other regions as weextend the program to company and franchise stores throughoutNorth America." Domestic margins continued to improve in the second quarter,up an estimated 100 to 120 basis points from 16.6% a year ago,due to the strong sales and effective store-level productivityinitiatives. "This will be the highest quarterly domestic margin at Wendy'sin the past 10 years," said Chief Financial Officer Frederick R.Reed. "It is encouraging to deliver the margin expansionconsidering that store-level crew wages continue to be underpressure (up about 5.5% in the quarter compared to a year ago)due to the strong U.S. economy and delivered food costs wereslightly higher than expected. "The margin performance is an important part of our strategicinitiatives to improve return on invested capital," said Reed."Our progress also includes repurchasing common shares andsubstantially completing our program to refinance with third-party lenders notes receivable held by the Company." Wendy's International, Inc. is one of the world's largestrestaurant operating and franchising companies with $6.5 billionin systemwide sales during 1998. Wendy's Old Fashioned Hamburgerswas founded in 1969 by Dave Thomas and is the third-largestquick-service hamburger restaurant chain with more than 5,300units in the United States, Canada and other internationalmarkets. Tim Hortons was founded in 1964 by Tim Horton and RonJoyce and is the largest coffee and baked goods restaurant chainin Canada. There are more than 1,700 Tim Hortons restaurants inNorth America.

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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 Barker of Wendy's International, Inc. (USA) 614-764-3044 Web site: http://www.wendys.com

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