Wendy's Selects Strategic AdvisorsWendy's (NYSE:WEN) recently announced that its special committee of the Board of Directors, which is reviewing the Company's strategic options, has engaged JP Morgan as lead advisor and Lehman Brothers Inc. as co-advisor.
The committee, established by unanimous action of the Board on April 25, 2007, is made up of independent directors James V. Pickett, Thomas F. Keller, David P. Lauer, James F. Millar and John R. Thompson.
As announced earlier, the committee is exploring strategic options for Wendy's that include, among other things, revisions to the Company's strategic plan, changes to its capital structure, or a possible sale, merger or other business combination.
'The Board's formation of the special committee is a positive step in Wendy's continuing efforts to enhance value for its shareholders, franchisees and other stakeholders,' said Pickett.
Board is confident in current management team
'The Board is excited about the initiatives implemented by CEO and President Kerrii Anderson and the management team,' said Pickett, who is Chairman of the Board and the special committee. 'Kerrii and her team generated more than $2 billion in shareholder value in 2006 and they are executing the Company's current strategic plan to revitalize the brand, improve results at every restaurant, and position Wendy's for long-term sustainable growth.
'The team has developed new products, improved Wendy's marketing and established a foundation to regain the operational excellence that has been Wendy's hallmark. They have also improved relationships with our franchisees and are creating more of a performance-driven culture. Their efforts are reflected in 10 straight months of positive same-store sales, as well as improved earnings growth and store margins.'
Company's first quarter 2007 performance included $14.5 million in income from continuing operations compared to a loss a year ago; EBITDA from continuing operations increased 85% to $57 million
Wendy's announced on April 25 that same-store sales in the first quarter of 2007 were up 3.8% at company restaurants and 3.7% at franchised restaurants.
Income from continuing operations was $14.5 million and $0.15 per share in the first quarter, compared to a loss from continuing operations of $5.9 million and a loss of $0.05 per share in the first quarter of 2006.
EBITDA from continuing operations was $57 million in the first quarter of 2007, up 85.0% compared to $30.8 million in the first quarter of 2006. Company EBITDA margins from continuing operations increased 440 basis points compared to one year ago.