Wendy's International, Inc. Announces Comprehensive Strategic Initiatives To Enhance Shareholder Value

(Friday, July 29, 2005) - Plans to sell 15%-18% of Tim Hortons in Initial Public Offering

- Launches initiatives to improve operating and financial performance
of its Wendy's business

- Board authorizes an additional $1 billion for share repurchase and
a 25% increase in the Company's annual dividend rate to $0.68 per share

- Plans to repay $100 million in debt due December 2005

DUBLIN, Ohio, July 29 /CNW/ -- Wendy's International,
Inc. (NYSE: WEN) today announced a comprehensive plan intended to improve the
performance of its Wendy's(R) business and enhance value for its shareholders.
The Board of Directors and management began in 2004 a thorough review of
the Company's operations and strategic plan with its long-term, independent
financial advisor, Goldman Sachs. The resulting initiatives announced today
are a comprehensive approach to manage the Company for the future.
Chairman and CEO Jack Schuessler said: "We are taking strategic actions to
improve Wendy's performance and highlight the value of Tim Hortons(R). The
strategic initiatives reflect the evolution of our business and represent the
most effective way to enhance value for our shareholders and other
stakeholders."

Company plans to sell 15%-18% of Tim Hortons in Initial Public Offering
The Board of Directors unanimously approved a plan to sell 15%-18% of Tim
Hortons in an initial public offering (IPO). The Company hopes to complete
the IPO by the end of the first quarter 2006 and would retain ownership of the
remaining 82%-85% of the Tim Hortons business.
An IPO of 15%-18% would preserve the ability to complete a tax-free spin-
off to Wendy's shareholders if the Board decides to pursue such an initiative
in the future.
The Board and management had previously considered various alternatives
for Tim Hortons. The strategic and financial rationale for pursuing the IPO
now includes:
- Tim Hortons is able to internally fund its growth, in contrast to its
reliance on the Company for capital to expand since its merger with
Wendy's in 1995 through the early 2000s.
- Tim Hortons is generating significant growth with annual same-store
sales increases of more than 7% in Canada since 2000. Tim Hortons has
expanded from 1,980 restaurants in 2000 to 2,721 at year-end 2004, and
produced $996 million in revenue and $247 million in segment income in
2004.
- Tim Hortons "Always Fresh" par-baking initiative (Maidstone Bakery) is
a proven success, but was still being developed in the early 2000s. In
addition, the business has expanded its vertical integration
initiatives with its Maidstone Coffee roaster and a distribution
business in Canada (dry and frozen goods).
- Tim Hortons' performance in the U.S. has improved.

Company repositioning Tim Hortons U.S. business
Tim Hortons U.S. business has been breakeven financially over the past
three years with same-store sales growing at an annual growth rate of 9% since
2000. At year-end 2004 there were 184 franchised stores and 67 company
operated units.
The Company plans to reposition its Tim Hortons U.S. business by
accelerating re-franchising of company stores and continuing to open new
restaurants with franchisees.
The chain will review its portfolio of U.S. stores, including the New
England locations acquired in 2004 and converted to Tim Hortons. These units
have produced lower than expected sales, which has negatively affected
profitability in the U.S. As part of its annual review of goodwill at all of
its brands, during the fourth quarter the Company will review for impairment
the goodwill related to the New England acquisition.

Company to focus on improving financial performance of its Wendy's
business
The Company completed a thorough review of its Wendy's business and plans
to maximize profits and returns in the U.S., Canada and International markets.
Strategic initiatives include:
- Rebalancing U.S. Store Mix: Following a review of its portfolio of
5,935 U.S. stores at year-end 2004, which consisted of 22% company
operated and 78% franchise operated units, the Company will pursue the
sale of certain stores to franchisees that are in areas where it is not
efficient for the Company to operate. Through these sales, Wendy's
plans to lower the mix of company operated stores over the next two to
three years from 22% to a range of 15%-18%. Wendy's will continue to
provide leadership to the system with innovation in operations, new
products, buildings and equipment. The Company may also buy certain
stores from franchisees for strategic reasons. Management believes
this initiative will increase operating margins and improve overall
performance.
- Closing Underperforming U.S. Company Stores: The Company has analyzed
its U.S. company store base and intends to close 40 to 60
underperforming restaurants that are negatively impacting profits and
returns.
- Selling Franchised Real Estate: At year-end 2004, Wendy's owned 217
U.S. sites where it leases real estate to franchisees. The Company
intends to pursue the sale of this real estate to franchisees or third
party investors, where feasible.
- Slowing New Store Development: Wendy's will slow U.S. company new
store development, which has averaged 71 units over the past four
years, to a range of 30 to 40 beginning in 2006. The Company is
adjusting its development plan due to rising real estate and building
costs, as well as margin pressure, and to focus on improving unit level
economics.
- Rebalancing Wendy's Store Mix in Canada: The Company assessed its
portfolio of 154 company operated and 230 franchise operated units in
Canada. Management intends to close certain underperforming units, re-
franchise units in certain provinces and limit development to the most
profitable areas.

Company expects neutral to positive impact from facilities actions and
improvement in ROA and ROIC
Facilities actions at Wendy's are expected to generate net gains from re-
franchising stores and selling real estate, which would offset potential
charges from closing underperforming stores. Management expects the
accumulation of gains and write-offs/charges will be neutral or slightly
positive to earnings, while improving return on assets and invested capital.
Slowing Wendy's new company store development is expected to save $50
million to $60 million in annual capital expenditures as management focuses on
improving return on assets and return on invested capital.

The amount of cash generated from the Tim Hortons IPO, facilities actions
and slowing Wendy's company store development is dependent on market and
business conditions. The Company plans to use the cash primarily to
repurchase common shares of its stock.

Board authorizes additional $1 billion for share repurchase and a 25%
increase in the Company's annual dividend rate to $0.68 per share
Based on the Company's strategic initiatives and cash flow projections,
the Board authorized an additional $1 billion for share repurchases. The total
authorization for share repurchase is now $1.22 billion.
The Company has repurchased 40.4 million common shares for approximately
$1 billion since 1998.
The Board also authorized a 25% increase in the Company's annual dividend
rate per share from $0.54 to $0.68, beginning with the dividend payment date
scheduled for November 21, 2005. Going forward, the Company intends to target
a dividend payout ratio in the range of 23%-27%, up from the current range of
18%-22%.

Company to pay off $100 million of debt due in December 2005 at maturity
The Company intends to use existing cash and cash flow to pay off $100
million in debt due on December 15, 2005 (6.35% notes on the balance sheet).
"We have a strong balance sheet and will remain focused on a sound, long-
term financial strategy as we improve earnings and position the Company for
the future," said Chief Financial Officer Kerrii Anderson.

Company reiterates 11%-13% long-term EPS growth rate
As part of the strategic planning process, management also reviewed the
Company's financial outlook and is reiterating its long-term annual growth
rate guidance of 11%-13%. The outlook includes the plan to sell a portion of
Tim Hortons as an IPO, the Wendy's brand initiatives to lower new unit
development and operate fewer company stores, as well as future share
repurchases.
"While we believe there is significant growth remaining in the Wendy's
business, our initiatives are focused on improving returns and cash flow,"
Schuessler said.
"The Board and management are confident that the initiatives announced
today will result in greater value for our shareholders and other
stakeholders. While the implementation of the plan will be dependent on market
and business conditions, we currently anticipate completing the IPO of Tim
Hortons in the next nine months. The other strategic initiatives with Wendy's
will begin immediately and continue over the next two to three years,"
Schuessler said.

Conference call and Webcast scheduled to discuss 2nd Quarter results
and Strategic Initiatives
Management will host a conference call on Friday, July 29, beginning at
8:00 am (Eastern) to discuss its second-quarter results and elements of its
Enterprise Strategic Initiatives. Investors and the public may participate in
the conference call in either one of the following ways:
- Phone Call: The dial-in number is 877-572-6014 (domestic) or
706-679-4852 (international). No need to register in advance.
- Simultaneous Web Cast: Available at www.wendys-invest.com. The call
will also be archived at that site.
Management intends to supplement its conference call remarks with a
PowerPoint presentation, which will be available at www.wendys-invest.com
beginning at 8:00 am.

Tim Hortons IPO
A registration statement relating to the common shares to be sold in the
Tim Hortons IPO is expected to be filed with the Securities and Exchange
Commission, but has not been filed or become effective. The common shares may
not be sold and offers may not be accepted prior to the time the registration
statement becomes effective.
This release does not constitute an offer to sell or the solicitation of
any offer to buy, and there shall not be any sale of the common shares in any
state in which such offer, solicitation or sale would be unlawful prior to the
registration or qualification under the securities laws of any such state.

Wendy's International, Inc. overview
Wendy's International, Inc. is one of the world's largest restaurant
operating and franchising companies with more than 9,800 total restaurants and
quality brands - Wendy's Old Fashioned Hamburgers(R), Tim Hortons and Baja
Fresh(R) Mexican Grill. The Company has investments in two other quality
brands - Cafe Express(TM) and Pasta Pomodoro(R). More information about the
Company is available at www.wendys-invest.com.

Safe Harbor statement
Certain information in this news release, particularly information
regarding future economic performance and finances, and plans, expectations
and objectives of management, and the planned Tim Hortons' IPO is forward
looking. Factors set forth in our Safe Harbor under the Private Securities
Litigation Reform Act of 1995, in addition to other possible factors not
listed, could affect the Company's actual results and cause such results to
differ materially from those expressed in forward-looking statements. Please
review the Company's Safe Harbor statement at
http://www.wendys-invest.com/safeharbor.

Cafe Express is a trademark of Cafe Express, LLC
Pasta Pomodoro is a registered trademark of Pasta Pomodoro, Inc.



For further information: John Barker, +1-614-764-3044, or
john_barker@wendys.com, or David Poplar, +1-614-764-3547, or
david_poplar@wendys.com, both of Wendy's International, Inc.
/Web site: http://www.wendys-invest.com
http://www.wendys.com
http://www.wendys-invest.com/safeharbor
http://www.timhortons.com
http://www.bajafresh.com
http://www.cafe-express.com
http://www.pastapomodoro.com

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