, the seller of square burgers, has confirmed that it plans to spin off to its stockholders the 160 million shares of doughnut chain
that it currently owns.
The shares represent an ownership stake of nearly 83% in Tim Hortons. In March, Tim Hortons issued 17.25% of its shares in an initial public offering. Wendy's is targeting Oct. 1 as the date to complete the spinoff.
Additionally, as part of its goal to cut costs by $100 million, the company last month offered an early retirement to around 175 full-time U.S. employees. The workers who agree to take part in the program are among the total 350 to 375 positions Wendy's plans to eliminate.
The company expects to incur charges during the second quarter for the job cuts. Earnings for the quarter will, as a result, be less than last year, Wendy's said after the close Tuesday.
Wendy's pointed out that other factors will also weigh on its quarterly earnings, including the loss of income that followed the Tim Hortons IPO, lower-than-expected same-store sales at its namesake shops and its Baja Fresh locations, consulting costs for the restructuring program and about $1 million in employee stock-compensation expenses.
The company plans to release its second-quarter same-store sales results on July 5.