Wendy's in deal to purchase up to $300 million in shares
February 20, 2007
by Eric Schroeder
DUBLIN, OHIO — Wendy’s International, Inc. entered into an agreement to purchase up to $300 million of its common shares from a broker-dealer in an accelerated share repurchase (A.S.R.) transaction.
Wendy’s previously announced its board of directors had approved a share repurchase program of up to 35.4 million shares. As part of that program, the company repurchased 22.4 million shares for $803.4 million in a modified Dutch auction tender offer in the fourth quarter of 2006. The company repurchased a total of 26.2 million shares during 2006.
"The A.S.R. enables us to utilize our strong balance sheet to return capital to shareholders in an efficient manner," said Kerrii Anderson, president and chief executive officer. "We are confident our Wendy’s business will continue to produce improving results and generate positive cash flow as we execute our strategic plan, revitalize the Wendy’s brand and improve restaurant operations across the entire system."
Wendy’s said it expects to repurchase up to approximately 9 million shares.