Image Activation Restaurants Continue to Generate Strong Sales; Expansion Accelerating
Wendy’s remains on track to reimage approximately 50 existing Company-operated restaurants in 2012, with plans for significantly more Company and franchise reimages in 2013 and beyond. This is in addition to the 10 Company-operated restaurants the Company successfully reimaged in 2011. The Company also plans to open at least 20 new restaurants during 2012, with at least 17 built in the new “Image Activation” design.
Wendy’s first franchised Image Activation restaurant opened in July 2012 and is generating strong sales in line with the Company-operated Image Activation restaurants. The Company expects franchisee participation in the Image Activation program to accelerate beginning in 2013.
President and Chief Executive Officer Emil Brolick said: “We are building a solid foundation for the reimaging of our system, which is very exciting for our customers, operators and franchisees. Image Activation is one of the most important elements of Wendy’s ‘Recipe to Win’ growth strategy. It elevates the customer experience with innovative exterior and interior designs for new units and reimages.“Based on the strong sales increases we have generated at our reimaged restaurants, we are planning to accelerate Image Activation in 2013 and are targeting 50 percent of Company-operated restaurants for reimaging by the end of 2015,” Brolick said. New Products and Marketing Driving Sales Momentum “We are beginning to build positive momentum, as we produced our fifth consecutive quarter of positive same-store sales, including a two-year same-store sales increase of 5.5 percent in the second quarter,” Brolick said. “We promoted products consistent with our ‘A Cut Above’ brand positioning, including our Spicy Guacamole Chicken Club sandwich, Signature Sides and Berry Almond Chicken Salad,” Brolick added. “We employed an integrated marketing approach, featuring our new advertising campaign that is generating positive consumer-approval scores. We also utilized a successful direct mail campaign as an additional media layer, which drove trial of core products and helped generate a favorable product mix. In addition, we continue to build our digital and social media platforms, as evidenced by the fact that Nation’s Restaurant News ® recently ranked Wendy’s No. 2 overall in its Restaurant Social Media Index.” Domestic and International Restaurant Portfolio Development The Wendy’s system opened 13 new restaurants and closed 47 restaurants during the second quarter. The Company conducted a comprehensive review of its restaurant portfolio during the second quarter. The Company closed 19 underperforming restaurants during the second quarter, and franchisees closed 28 restaurants.