Wendy’s Says It’s Open to Sale of Hamburger Chain

By Associated Press

DUBLIN, Ohio — Wendy’s International Inc. is exploring a possible sale of the company, the nation’s third-largest hamburger chain said Monday.

The company also warned that it’s earnings for the year would miss Wall Street estimates.

“While a sale remains only one of the alternatives under consideration, we believe it merits more thorough examination,” James V. Pickett, Wendy’s chairman and head of special committee doing the study, said in a statement.

The company, under pressure from shareholders, formed a committee in April to determine how to boost its stock price. JP Morgan, as lead adviser, and Lehman Brothers Inc., as co-adviser, will conduct a review in conjunction with the committee.

A sale would cap a whirlwind year for the company, which has spun off its Tim Hortons coffee-and-doughnut chain, dumped its money- losing Baja Fresh Mexican Grill and laid off employees at its corporate office.

The company said there is no assurance that a deal will be completed.

Wendy’s also said it expects to make $1.09 to $1.23 per share for the year, primarily because of weaker-than-expected sales at stores open at least a year and higher-than-expected commodity costs. Analysts surveyed by Thomson Financial expected earnings of $1.27 per share.

Shares fell $1.11, nearly 3 percent, to $38.62 in early trading.

On the Net: www.wendys.com

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