Divide each runner's total distance traveled by the radius of the track. This gives the angle (in radians) about the center of the circular track that each has traversed. Account for the fact they ran in opposite directions by making one positive and the other negative (i.e. one ran counterclockwise and the other clockwise).
If R is the radius of the track and they started, say, at x = R and y = 0 then Sandy's position would be (R \cos \theta _s, R \sin \theta _s) and Candy's would be (R \cos \theta _C, R \sin \theta _C).
To find the straight line distance find the difference between their x coordinates and the difference between their y coordinates (call them \Delta x and \Delta y, for example. Their separation is then simply
d = \sqrt {{\Delta x}^2 + {\Delta y}^2}