Wendy's 2010 Annual Report Download - page 7

Explanatory Note
This Annual Report on Form 10-K is a combined report being filed separately by Wendy’s/Arby’s Group, Inc.
(“Wendy’s/Arby’s”) and Wendy’s/Arby’s Restaurants, LLC (“Wendy’s/Arby’s Restaurants”), a direct 100% owned
subsidiary holding company of Wendy’s/Arby’s. Unless the context indicates otherwise, any reference in this report to
the “Companies,” “we,” “us” and “our” refers to Wendy’s/Arby’s together with its direct and indirect subsidiaries,
including Wendy’s/Arby’s Restaurants. Each registrant hereto is filing on its own behalf all of the information
contained in this annual report that relates to such registrant. Each registrant hereto is not filing any information that
does not relate to such registrant, and therefore makes no representation as to any such information.
The principal subsidiaries of Wendy’s/Arby’s Restaurants are Wendy’s International, Inc. (“Wendy’s”) and
Arby’s Restaurant Group, Inc. (“Arby’s”) and their subsidiaries. Substantially all of the operating results of Wendy’s/
Arby’s are derived from the operating results of Wendy’s/Arby’s Restaurants, except expenses of Wendy’s/
Arby’s. Where information or an explanation is provided that is substantially the same for each company, such
information or explanation has been combined in the Annual Report on Form 10-K. Where information or an
explanation is not substantially the same for each company, we have provided separate information and
explanation. In addition, separate financial statements for each company are included in Item 8, “Financial
Statements and Supplementary Data.”
PART 1
Special Note Regarding Forward-Looking Statements and Projections
This Annual Report on Form 10-K and oral statements made from time to time by representatives of the
Companies may contain or incorporate by reference certain statements that are not historical facts, including, most
importantly, information concerning possible or assumed future results of operations of the Companies. Those
statements, as well as statements preceded by, followed by, or that include the words “may,” “believes,” “plans,”
“expects,” “anticipates,” or the negation thereof, or similar expressions, constitute “forward-looking statements”
within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Reform Act”). All statements that
address future operating, financial or business performance; strategies or expectations; future synergies, efficiencies or
overhead savings; anticipated costs or charges; future capitalization; and anticipated financial impacts of recent or
pending transactions are forward-looking statements within the meaning of the Reform Act. The forward-looking
statements are based on our expectations at the time such statements are made, speak only as of the dates they are
made and are susceptible to a number of risks, uncertainties and other factors. Our actual results, performance and
achievements may differ materially from any future results, performance or achievements expressed or implied by our
forward-looking statements. For all of our forward-looking statements, we claim the protection of the safe harbor for
forward-looking statements contained in the Reform Act. Many important factors could affect our future results and
could cause those results to differ materially from those expressed in, or implied by the forward-looking statements
contained herein. Such factors, all of which are difficult or impossible to predict accurately, and many of which are
beyond our control, include, but are not limited to, the following:
• uncertainty regarding the outcome of the Companies’ exploration of strategic alternatives for the Arby’s
brand and its impact on the Companies’ businesses;
• competition, including pricing pressures, aggressive marketing and the potential impact of competitors’
new unit openings on sales of Wendy’s®and Arby’s®restaurants;
• consumers’ perceptions of the relative quality, variety, affordability and value of the food products we offer;
• food safety events, including instances of food-borne illness (such as salmonella or E. coli) involving
Wendy’s or Arby’s or their respective supply chains;
• consumer concerns over nutritional aspects of beef, poultry, French fries or other products we sell, or
concerns regarding the effects of disease outbreaks such as “mad cow disease” and avian influenza or “bird
flu”;
• success of operating and marketing initiatives, including advertising and promotional efforts and new
product and concept development by us and our competitors;
• the impact of general economic conditions and high unemployment rates on consumer spending,
particularly in geographic regions that contain a high concentration of Wendy’s or Arby’s restaurants;
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