Fadali Inc. Finance Committee

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Fadali Inc.Finance Committee Meeting April 7,
2005
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Wheeling Investment Group

• Sherry Cassidy
• Janie Libby
• Thom Mc Cracken
• Vince Viviano

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Wendy's
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History
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Wendys 6671
Tim Hortons 2721
Baja Fresh 295
Café Express 70 19
Pasta Pomodoro 29 45
Wendys Bakery
IAWS Group/ Cuisine de France
Hortons Distribution Warehouse
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2004 Net Income and EPS Net
Income EPSPro forma Net income
238 mil. 2.06Goodwill charge
(186.6)mil. (1.61)Results reported
52.0 mil 0.45
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Sustainable Growth

• Earnings per share
• Revenues and net income
• Five-year growth history
• Franchise revenue
• 500 new stores

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Dividends

• 0.24 to 0.48 per share
• Increase of 100 in 2004
• 12.5 increase projected for 2005 at 0.54
• 108 consecutive quarterly dividend payments
• Darden pays 0.08 per share

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Wendys 5-Year Stock Growth
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Wendys Stock Valuation
Expected Earnings Growth Rate 10 12
14 x Current Earnings 2.06 2.06
2.06 PV of Future Earnings 20.60 24.72
28.84 Current Book Value per share
14.83 14.83 14.83 Target Price 35.43
39.55 43.67
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Wendys One-Year Stock Estimate(assuming EPS of
2.17 to 2.23)40.87 to 41.59? 5 - 7
increase in one year? Plus dividends of 0.54
per share
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Financial Flexibility
Darden Wendys Industry Avg
2004 2004 2004
Working Capital (337 million) (229 million)
Current Ratio 0.51 0.67 0.9
Debt to Equity 1.26 0.40 0.62
Debt to Assets 1.26 0.22
Return on Assets 8.5 7.5
Return on Investment 19.0 13.7
Profit Margin 4.6 8.1

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Innovations

• Capital Expenditures
• Technological Advancements
• New double-sided burger grill
• Enhanced menu offerings

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Summary