Wendy's International (WEN)

Other Income, Net

Other income, net increased $3.5 million, principally due to (1) a $2.0 million improvement in foreign currency transaction and derivatives related to Jurlique from losses of $1.5 million in 2004 to gains of $0.5 million in 2005, (2) $1.2 million of rental income of RTM in 2005 subsequent to the RTM Acquisition on restaurants leased primarily to franchisees, (3) a $0.8 million increase in equity in net earnings of investees entirely due to equity in earnings of the REIT, in which we made an investment in December 2004, (4) a $0.7

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million gain on lease termination in 2005 of an underperforming Company-owned restaurant and (5) a $0.3 million recovery in 2005 upon collection of a fully-reserved non-trade note receivable held by a subsidiary which predated our acquisition of that subsidiary. These increases were partially offset by $1.5 million of costs recognized in 2005 related to our decision not to pursue a certain financing alternative in connection with the RTM Acquisition and a $0.6 million decrease in costs related to proposed business acquisitions not consummated to $1.4 million in 2005 from $2.0 million in 2004.

Other Income, Net

       The $1.7 million decrease in other income, net is principally attributable to a $1.5 million net loss on transactions related to our July 2004 investment in Jurlique. The net loss consists of a $1.4 million loss on a foreign currency put and call arrangement on a portion of our total cost related to the investment in Jurlique whereby we limited our overall foreign currency risk of holding the investment through July 2007 and a $0.1 million net loss from a $1.7 million foreign currency transaction loss on a liability payable in Australian dollars for a portion of the cost of our investment in Jurlique which we settled in July 2005 substantially offset by a $1.6 million gain on a foreign currency forward contract whereby we fixed the exchange rate in connection with this liability.