1. Wendy’s Comes Up with a New Strategic Recipe Janet Adamy, Wall Street Journal, September 30, 2008

2. Background  Third largest hamburger chain with 6,625 locations  Declining performance since founder Dave Thomas died in 2002 Acquired by Triarc Cos. for $2 billion in deal forced by the board Acquired by Triarc Cos. for $2 billion in deal forced by the board Matches Wendy’s with much smaller Arby’s Matches Wendy’s with much smaller Arby’s Roland Smith, President & CEO of Wendy’s/Arby’s Group Inc unveiled a new strategy Roland Smith, President & CEO of Wendy’s/Arby’s Group Inc unveiled a new strategy

3. Question? What market is Wendy’s currently targeting? What market is Wendy’s currently targeting? How effective has this been? How effective has this been?

6. New Strategy Re-focus on 24-49 year old market by emphasizing quality and freshness Re-focus on 24-49 year old market by emphasizing quality and freshness “breath of fresh air from the red-wig campaign” “breath of fresh air from the red-wig campaign” Alter the $.99 value menu due to increased costs Alter the $.99 value menu due to increased costs Improve fries, buns and bacon Improve fries, buns and bacon Break into the breakfast crowd Break into the breakfast crowd Fastest growing segment of FF industry Fastest growing segment of FF industry Reformulate menu Reformulate menu Improve coffee – Folgers Improve coffee – Folgers Espresso? Espresso? Remodel dated stores Remodel dated stores Credit crunch Credit crunch

7. Questions for Discussion How successful is Wendy’s likely to be? How successful is Wendy’s likely to be? Wendy’s was clearly tied to founder/CEO Dave Thomas. Is there another company where the CEO is closely tied to the success of the firm? Wendy’s was clearly tied to founder/CEO Dave Thomas. Is there another company where the CEO is closely tied to the success of the firm?

8. “Just a week after reassuring investors and employees about his health, Apple Inc. Chief Executive Steve Jobs disclosed he has a ‘more complex’ medical condition and would take a leave of absence until the end of June.” “Just a week after reassuring investors and employees about his health, Apple Inc. Chief Executive Steve Jobs disclosed he has a ‘more complex’ medical condition and would take a leave of absence until the end of June.”Apple WSJ, January 15, 2008 WSJ, January 15, 2008 Apple shares fell 7% in late trading on the news Apple shares fell 7% in late trading on the news