Wendy's International (WEN)

Cash Requirements

Our consolidated cash requirements for continuing operations for 2007, exclusive of operating cash flow requirements, consist principally of (1) cash capital expenditures of approximately $70.0 million, (2) a maximum of an aggregate $50.0 million of payments for repurchases, if any, of our class A and class B common stock for treasury under our current stock repurchase program, (3) regular quarterly cash dividends aggregating approximately $32.0 million, (4) scheduled debt principal repayments aggregating $21.0 million, (5) any prepayments under our Credit Agreement and (6) any requirement to repurchase the minority interests in Deerfield held by two of its executives. We anticipate meeting all of these requirements through (1) the use of our liquid net current assets, (2) cash flows from continuing operating activities, if any, (3) borrowings under our restaurant segment’s revolving credit facility of which $93.5 million is unused as of December 31, 2006, (4) the $30.0 million conditional funding commitment for sale-leaseback financing from the real estate finance company, all of which is unused as of January 1, 2007, (5) borrowings under our asset management segment’s revolving note of which $6.0 million is currently available and (6) proceeds from sales, if any, of up to $2.0 billion of our securities under the universal shelf registration statement.

Cash Requirements

       Our consolidated cash requirements for continuing operations for 2006, exclusive of operating cash flow requirements, consist principally of (1) a maximum of an aggregate $50.0 million of payments for repurchases of our class A and class B common stock for treasury under our current stock repurchase program, (2) cash capital expenditures of approximately $68.9 million, (3) regular and special cash dividends aggregating approximately $70.0 million, (4) scheduled debt principal repayments aggregating $24.1 million and (5) the cost of business acquisitions, if any. We anticipate meeting all of these requirements through (1) the use of our liquid net current assets, (2) cash flows from continuing operating activities, if any, (3) our $100.0 million revolving credit facility, (4) our $30.0 million sale-leaseback financing agreement with CNL and (5) if necessary for any business acquisitions and if market conditions permit, borrowings including proceeds from sales, if any, of up to $2.0 billion of our securities under the universal shelf registration statement.