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Investing and Financing Activities of Wendy's

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Investing and Financing Activities of Wendy's
During the year of 2012, cash used for investing activities of Wendy’s totaled $189 million, increased $131 million from 2011. The two largest investing activities appeared in Wendy’s statement of cash flow are capital expenditures and acquisitions.
Cash capital expenditures of Wendy’s in 2012 totaling $197.6 million, including $71.9 million for reimaged and new Image Activation restaurants, $13.5 million for new restaurants, $28.0 million for point-of-sale equipment, $23.2 million for the construction of a new building at its corporate headquarters and $61.0 million for various capital projects.
In the middle of 2012, Wendy’s acquired 54 franchised restaurants. The purchase price was $38.1 million in cash. Wendy’s also agreed to lease the real estate, buildings and improvements related to some of the acquired restaurants which were considered part of the purchase transaction. Wendy’s did not incur any material acquisition-related costs.
Some other important investing activities involved the investment in limited partnerships of indirect 18.5% interest in Arby’s Restaurant Group, Inc., and approximately 11% cost method investment in Jurlique International Pty Ltd.
On February 2, 2012, Wendy’s completed the sale of its investment in Jurlique and received proceeds of $27.4 million. Wendy’s did this because prior to 2009, Wendy’s had determined that all of its remaining $8.5 million investment in Jurlique was impaired. Wendy’s realized that Jurlique cannot help them make profit and decided to sell all of investment in Jurlique to protect stockholders equity. In the meantime, Wendy’s can use this money to strength their capital expenditures.
The increase in cash used for investing activities is mainly because of the sale of Arby’s in 2011. Wendy’s sold Arby’s for $130.0 million in cash and indirectly retained an 18.5% interest in Arby’s and during 2012, Wendy’s received a $4.6 million dividend from the investment in Arby’s. Wendy’s decided to sell Arby’s because

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