Wendy’s Sharpens Focus with $31 Million Baja Fresh Sale
Wendy’s International, Inc. said it is focusing its efforts on its main Wendy’s franchise with the sale of the Baja Fresh Mexican Grill restaurant chain.
Wendy’s is selling its 300 Baja Fresh restaurants to a West Coast restaurant operating company for about $31 million. The buyer is a consortium of investment groups led by David Kim. The group has a number of national brands under its ownership, including Sweet Factory, Cinnabon, KaBloom, and Denny’s, the hamburger chain said last week.
Wendy’s instead plans to focus on ramping up its square hamburger business, company officials said. The company plans to introduce new products, including breakfast in 2007, as part of its shift to market to younger consumers (PROMO Xtra. Feb. 8, 2006).
“This transaction … will allow us to sharpen our focus on the Wendy’s brand,” said Kerrii Anderson, Wendy’s interim CEO and president, in a statement.
The deal is expected to be complete in the fourth quarter. Financial terms were not disclosed.
In March, Wendy’s said it was considering selling the Baja Fresh chain which experienced declining same-store sales. The company paid $275 million for the Thousand Oaks, CA-based chain in 2002, according to news reports. The sale comes after Wendy’s spun off its Tim Hortons, a coffee and doughnut brand, last month.
