The Wendy’s Company Provides Update On COVID-19

The Wendy’s Company announced an update on the impact of the COVID-19 pandemic on the Company’s business.

COVID-19 Updates
Same-Restaurant Sales (Through the month ended 5/31/2020)

• Global same-restaurant sales have improved each week throughout the fiscal month of May after being impacted by the previously disclosed disruption in beef supply at the beginning of the month. Global same-restaurant sales for the last week of May turned positive in the low single digit range.
• Breakfast in the U.S. continued to perform very strongly in the fiscal month of May at approximately 8% of U.S. systemwide sales.
• U.S. digital sales in the fiscal month of May were approximately 4.5% of U.S. systemwide sales. This business was impacted by the temporary disruption in beef supply as items were temporarily removed from mobile order and delivery menus if there were beef supply issues at an individual restaurant level.

Percent of Operating Restaurants (as of 5/31/2020)

• The Company expects to continue its Wendy’s system restaurant and dining room reopening process through a phased approach in accordance with federal, state and local guidance, with customer and team member safety as its top priority. The majority of restaurants that are open are operating drive-thru and delivery only. Dining rooms are beginning to re-open at each restaurant-owner’s discretion, subject to applicable restrictions.
• Restaurants that remain closed in the U.S. are primarily due to their locations (e.g., unique sites such as malls).
• Restaurants that remain closed Internationally are primarily due to country-wide closure mandates.

Beef Supply Update
As previously disclosed, the Company experienced disruptions to its beef supply beginning in early May as beef suppliers across North America faced production challenges. As a result, some menu items were occasionally in short supply at some Wendy’s system restaurants. The Company and its supply chain partners effectively managed through this disruption by allocating beef to all Wendy’s system restaurants, with deliveries occurring two or three times a week, consistent with normal delivery schedules. The Company also shifted its marketing efforts in the short term to focus on chicken products in an effort to alleviate pressure on beef demand.  At this point in time, beef supply has returned to near-normal levels across the Wendy’s system.

Liquidity Update
As of May 31, 2020, the Company continues to maintain a healthy level of cash on hand at approximately $375 million. 

Future Business Updates
The Company expects to discontinue further intra-quarter business updates related to the impact of COVID-19 and return to its traditional quarterly reporting going forward.  The Company plans to report its second quarter earnings results on August 5, 2020.

Additional COVID-19 Information and Updates on the Company’s Square Deal Blog
The information and updates provided in this release related to COVID-19 are made as of the date and time of this release.  Additional updates, if any, may be posted to the Company’s Square Deal^TM blog at www.squaredealblog.com.  Given the fluid nature of this situation, information may change quickly, and the Company does not undertake a duty to update this information to reflect changes.

About Wendy’s
Wendy’s^® was founded in 1969 by Dave Thomas in Columbus, Ohio. Dave built his business on the premise, “Quality is our Recipe^®,” which remains the guidepost of the Wendy’s system. Wendy’s is best known for its made-to-order square hamburgers, using fresh, never frozen beef*, freshly-prepared salads, and other signature items like chili, baked potatoes and the Frosty^® dessert. The Wendy’s Company (Nasdaq: WEN) is committed to doing the right thing and making a positive difference in the lives of others. This is most visible through the Company’s support of the Dave Thomas Foundation for Adoption^® and its signature Wendy’s Wonderful Kids^® program, which seeks to find every child in the North American foster care system a loving, forever home. Today, Wendy’s and its franchisees employ hundreds of thousands of people across more than 6,800 restaurants worldwide with a vision of becoming the world’s most thriving and beloved restaurant brand. For details on franchising, connect with us at www.wendys.com/franchising. Visit www.wendys.com and www.squaredealblog.com for more information and connect with us on Twitter and Instagram using @wendys, and on Facebook at www.facebook.com/wendys.

*Fresh beef available in the contiguous U.S., Alaska, and Canada.

Investor Contact:
Greg Lemenchick
Senior Director – Investor Relations & Corporate FP&A
(614) 766-3977; greg.lemenchick@wendys.com

Media Contact:
Heidi Schauer
Senior Director – Corporate Communications & Customer Care
(614) 764-3368; heidi.schauer@wendys.com