Wendy's 2013 Annual Report Download - page 42

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Company-owned Franchised Systemwide
Restaurant count:
Restaurant count at January 1, 2012 ............................. 1,417 5,177 6,594
Opened ............................................... 16 85 101
Closed ................................................ (32) (103) (135)
Net purchased from (sold by) franchisees ...................... 26 (26) —
Restaurant count at December 30, 2012 .......................... 1,427 5,133 6,560
Opened ............................................... 26 76 102
Closed ................................................ (27) (78) (105)
Net (sold to) purchased by franchisees (a) ..................... (243) 243 —
Restaurant count at December 29, 2013 .......................... 1,183 5,374 6,557
(a) Includes 244 restaurants sold to franchisees under our system optimization initiative.
2013 2012 2011
Wendy’s company-owned average unit volumes: ........................ $1,514.0 $1,483.8 $1,456.4
Sales
Change
2013 2012
Wendy’s .................................................... $(26.4) $79.2
Bakery and other .............................................. (6.1) (7.5)
$(32.5) $71.7
The decrease in sales in 2013 was primarily due to the impact of Wendy’s company-owned restaurants closed or
sold, including under our system optimization initiative, during the fourth quarter of 2012 and thereafter, which
resulted in a reduction in sales of $116.1 million. This decrease in sales was partially offset by incremental sales of
$74.2 million from locations opened or acquired during that same time period. Sales during 2013 also increased due
to an increase in our average per customer check amount, in part offset by a decrease in customer count. Our average
per customer check amount increased primarily due to a benefit from strategic price increases on our menu items and
changes in the composition of our sales. Sales during 2013 were negatively impacted by temporary closures of
restaurants being remodeled under our Image Activation program. Sales were also negatively impacted by $7.2 million
due to changes in Canadian foreign currency rates.
The increase in sales in 2012 was partially due to an increase in our average per customer check amount, in part
offset by a decrease in customer count throughout the majority of 2012. Our average per customer check amount
increased in 2012 primarily due to strategic price increases on our menu items and, to a lesser extent, the composition
of our sales which included more premium products in 2012. Wendy’s company-owned restaurants opened or
acquired subsequent to January 1, 2012 resulted in incremental sales of $51.1 million in 2012, which were partially
offset by a reduction in sales of $17.6 million from locations closed or sold after January 1, 2012. Sales were also
negatively impacted by $2.7 million due to changes in Canadian foreign currency rates.
Franchise Revenues
Change
2013 2012
Franchise revenues ............................................. $14.7 $2.1
The increases in franchise revenues during 2013 and 2012 were due to increases in franchise restaurant
same-restaurant sales of 1.8% and 1.7%, respectively, which we believe were primarily impacted by the same factors
described above for company-owned restaurants. Franchise revenues in 2013 were also positively impacted by initial
franchise fees and rental income recognized as a result of our system optimization initiative.
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