Wendy's International, Inc.

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International Guild of Hospitality & Restaurant Managers

P.O. Box 256
4288 West Dublin-Granville Rd.
Dublin , OH 43017

Phone: (614) 764-3100
Fax: (614) 764-3330

www.wendys.com

Wendy's International, Inc., incorporated in 1969, is primarily engaged in the business of operating, developing and franchising a system of quick-service restaurants. At December 30, 2001 , there were 6,043 Wendy's restaurants (Wendy's) in operation in the United States and in 26 other countries and territories. Of these restaurants, 1,228 were operated by the Company and 4,815 by its franchisees. In addition, at December 30, 2001 , Wendy's International and its franchisees operated 2,163 Tim Hortons (Hortons) restaurants in Canada and the United States . Of these restaurants open, at December 30, 2001 , only 97 were Company operated.

Each Wendy's restaurant offers a relatively standard menu featuring hamburgers and filet of chicken breast sandwiches, which are prepared to order with the customer's choice of condiments. Wendy's menu also includes chicken nuggets, chili, baked and French fried potatoes, prepared salads, desserts, soft drinks and other non-alcoholic beverages and children's meals. In addition, the restaurants sell a variety of promotional products on a limited basis. Each Hortons unit offers coffee, cappuccino and fresh baked goods, such as donuts, muffins, pies, croissants, tarts, cookies, cakes and bagels, and, in some units, sandwiches, soups and fresh-baked breads.

The Company publishes detailed specifications for food products, preparation and service, and provides continual in-service training of employees and by field visits from Wendy's International supervisors. In the case of franchisees, field visits are made by Company personnel who review operations and make recommendations to assist in compliance with its specifications.

Generally, Wendy's International does not sell food or supplies to its Wendy's franchisees, however, the Company has arranged for volume purchases of many of these products. Under the purchasing arrangements, independent distributors purchase certain products directly from approved suppliers and then store and sell them to local company and franchised restaurants. These programs help assure availability of products and provide quantity discounts, quality control and efficient distribution. These advantages are available both to Wendy's International and to any franchisee that chooses to participate in the distribution program.

Under the Hortons Canada franchise arrangements, the franchisee is required to purchase certain products, such as coffee, sugar, flour and shortening, from a Hortons' subsidiary. These products are distributed from six warehouses located across Canada . Products are delivered to Hortons Canada restaurants primarily by Hortons' fleet of trucks and trailers. Both Company and franchise stores of Hortons in the United States purchase products from a supplier that has been approved by Wendy's International.

The New Bakery Co. of Ohio, Inc., (Bakery), a wholly owned subsidiary of the Company, is a producer of buns for Wendy's restaurants. At December 30, 2001 , the Bakery supplied 650 restaurants operated by Wendy's International and 2,104 restaurants operated by franchisees. At the present time, the Bakery does not manufacture or sell any other products.

In June 2002, the Company acquired Fresh Enterprises, Inc., the owner and operator of the Baja Fresh Mexican Grill restaurant chain.

Disclaimer:
The data included within the Financial section is solely for information and does not construe a recommendation and/or endorsement by IGHRM or its members to invest funds with any of the companies listed. You are strongly advised to obtain professional advice with qualified individuals or corporations for any investments of funds.

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