CHICAGO (AdAge.com) -- It's official: Wendy's is for sale.
After apparently exhausting its turnaround options, the No. 3
burger chain today has "determined that the exploration of a sale
is the appropriate next step in the investigation of value-creating
alternatives for our stakeholders," according to a statement from
James V. Pickett, chairman of the board and the chain's special
committee.

He said a sale is still just
one option among others, but "we believe it merits more
thorough examination."
Disappointing same-store sales growth
The company also adjusted its outlook for 2007 based on
lower-than-expected same-store sales and higher commodity costs.
Same-store sales grew 3.8% during the first quarter but just 0.7%
during the second quarter through June 15.
Management blamed competitive regional pricing by rivals, who
raised prices to cover higher costs, and Wendy's followed. But
customers have apparently rejected the higher prices, and store
traffic has suffered.
"We've delivered 12 consecutive months of positive same-store sales
through May, but the last two months have been challenging as we've
aggressively adjusted pricing to bring Wendy's more in line with
the market," President-CEO Kerrii Anderson said in a statement. "We
believe our new market-based pricing approach is the right
long-term strategy to generate more positive store operating
margins, but it has pressured transactions in the short-term."
New ad campaign
Ms. Anderson said Wendy's new advertising campaign via Publicis
Groupe's Saatchi and Saatchi, New York, "will clearly tell
consumers about Wendy's superior quality and great-tasting
products." The campaign broke just before Memorial Day with a heavy
promotional schedule, including numerous product
giveaways and interactive marketing. But so far, though it
has been well-received, consumers haven't responded as hoped.
Some view today's move as a no-confidence vote in the strategy. "We
believe recent sales and profit trends may have diminished board
faith in the current strategy and seem to have heightened resolve
to sell the company," said David Palmer, restaurant analyst for UBS
Equity Research, in a note to investors.