August 1, 2005

Wendy’s Announces Tim Hortons IPO

Wendy’s International announced plans to sell 15%-18% of its Tim Hortons operation in an initial public offering. The company said it will use the proceeds primarily to repurchase shares of its common stock.

Wendy’s anticipates conducting the IPO by the end of the first quarter of 2006.

An IPO of 15%-18%, the company noted, will preserve its ability to complete a tax-free spin-off of Tim Hortons to Wendy’s shareholders, should the board choose to do so.

Wendy’s said that an offering is now feasible because Tim Hortons now is able to internally fund its expansion, which it was unable to do from the time it was acquired by Wendy’s in 1995 until the early 2000s.

In addition, the concept’s unit count and same-store sales are growing, its performance in the United States has improved and it’s par baking initiative, which was being developed in the early 2000s, has proven successful.

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