Exhibit 12.1
The Wendy’s Company
Unaudited Computation of Ratio of Earnings to Fixed Charges
(In Millions)
Year Ended | ||||||||||||||||||||
January 1, 2012 | January 2, 2011 | January 3, 2010 | December 28, 2008 | December 30, 2007 | ||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | 24.4 | $ | 13.6 | $ | (16.3 | ) | $ | (181.6 | ) | $ | (108.3 | ) | |||||||
Deduct equity in earnings of equity investees | (9.5 | ) | (9.5 | ) | (8.5 | ) | (2.0 | ) | — | |||||||||||
Distribution of earnings from equity investees | 14.9 | 14.0 | 14.6 | 2.9 | — | |||||||||||||||
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$ | 29.8 | $ | 18.1 | $ | (10.2 | ) | $ | (180.7 | ) | $ | (108.3 | ) | ||||||||
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Fixed charges: | ||||||||||||||||||||
Interest expense | $ | 114.1 | $ | 118.4 | $ | 106.9 | $ | 47.9 | $ | 45.7 | ||||||||||
Interest portion of rent expense (a) | 22.3 | 21.8 | 21.9 | 5.1 | 0.9 | |||||||||||||||
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$ | 136.4 | $ | 140.2 | $ | 128.8 | $ | 53.0 | $ | 46.6 | |||||||||||
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Adjusted earnings from continuing operations before income taxes | $ | 166.2 | $ | 158.3 | $ | 118.6 | $ | (127.7 | ) | $ | (61.7 | ) | ||||||||
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Ratio of earnings to fixed charges | 1.22 | 1.13 | N/A | N/A | N/A | |||||||||||||||
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Amount by which earnings were insufficient to cover fixed charges | N/A | N/A | $ | 10.2 | $ | 180.7 | $ | 108.3 | ||||||||||||
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(a) | Represents approximately one-third of rent expense deemed for this purpose to represent the interest component of rental payments. |