Wendy's to explore sale, revises guidance

By Lisa Kerner

Charlotte, N.C., June 18 - Wendy's International, Inc. said its special committee will explore a possible sale of the company. A specific timetable for the process was not provided. On April 25, Wendy's announced it would review options including a revision to its strategic plan and changes to the capital structure.

"The special committee has determined that the exploration of a sale is the appropriate next step in the investigation of value-creating alternatives for our stakeholders," chairman of the board James V. Pickett said in a company news release. "While a sale remains only one of the alternatives under consideration, we believe it merits more thorough examination."

JPMorgan, as lead adviser, and Lehman Brothers Inc., as co-adviser, will conduct the sale exploration process along with the special committee.

The special committee said it is also evaluating possible securitization financing that could be used by a potential buyer or in a recapitalization of the company. This evaluation is being led by Lehman Brothers and JPMorgan on behalf of the special committee.

There is no assurance that these steps will result in any changes to the company's current plans or that any transaction will be consummated, the release stated.

Wendy's said it revised its 2007 outlook for EBITDA to $295 million to $315 million, from previous guidance of $330 million to $340 million. The company also revised its earnings per share range to $1.09 to $1.23, from previous March 20 guidance of $1.26 to $1.32.

The Dublin, Ohio-based quick service restaurant chain said its revised outlook is due to lower-than-planned same-store sales and higher-than-expected commodity costs.

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