Wendy's 2009 Annual Report Download - page 138

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related to significant vendors and sources of its raw materials is mitigated as we believe that there are other
vendors who would be able to service our requirements. However, if a disruption of service from any of our
main in-line distributors was to occur, we could experience short-term increases in our costs while distribution
channels were adjusted.
Because our restaurant operations are generally located throughout the United States, and to a much lesser
extent, Canada and other foreign countries and U. S. territories, we believe the risk of geographic concentration
is not significant. Our restaurant segments could also be adversely affected by changing consumer preferences
resulting from concerns over nutritional or safety aspects of beef, poultry, french fries or other foods or the
effects of food-borne illnesses. Our exposure to foreign exchange risk is primarily related to fluctuations in the
Canadian dollar relative to the U.S. dollar for Canadian operations in the Wendy’s restaurant segment.
However, our exposure to Canadian dollar foreign currency risk is mitigated by the fact that less than 10% of
our restaurants are in Canada.
The following is a summary of the Company’s segment information:
2009
Wendy’s
restaurants
Arby’s
restaurants Corporate Total
Revenues:
Sales ........................................... $2,134,242 $1,064,106 $ — $3,198,348
Franchise revenues............................... 302,853 79,634 — 382,487
2,437,095 1,143,740 — 3,580,835
Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . 128,048 56,188 6,015 190,251
Operating profit (loss) . . . . . . . . . . . . . . . . . . . . . . . . . $ 167,753 $ (29,248) $(26,529) 111,976
Interest expense ................................... (126,708)
Investment expense, net............................ (3,008)
Other than temporary losses on investments. . . . . . . . . . (3,916)
Other income, net................................. 1,523
Loss from continuing operations before income
taxes....................................... $ (20,133)
2008
Wendy’s
restaurants
Arby’s
restaurants Corporate Total
Revenues:
Sales............................................. $530,843 $1,131,448 $ — $1,662,291
Franchise revenues................................. 74,588 85,882 — 160,470
605,431 1,217,330 — 1,822,761
Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . 23,852 61,206 3,257 88,315
Operating profit (loss). . . . . . . . . . . . . . . . . . . . . . . . . . . $ 30,788 $ (395,304) $(49,134) (413,650)
Interest expense..................................... (67,009)
Investment income, net.............................. 9,438
Other than temporary losses on investments . . . . . . . . . . . (112,741)
Other income, net................................... 2,710
Loss from continuing operations before
income taxes ............................ $ (581,252)
131
Wendy’s/Arby’s Group, Inc. and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(In Thousands Except Per Share Amounts)