Wendy’s aims to cut the fat as burger chain’s revenues drop

 
Joseph Millis
Square meal deal: Wendy’s is selling 500 of its US restaurants to franchisees
US HAMBURGER chain Wendy’s yesterday unveiled plans to sell another 500 of its restaurants to franchisees as it seeks to cut down on spending.

Wendy’s, the third largest hamburger chain by sales in the US, said it planned to “return substantial cash” to investors this year as its sells more of its restaurants to franchisees.

Emil Brolick, Wendy’s chief executive, said: “We intend to buy and sell restaurants opportunist­ically to act as a catalyst for growth by further strengthening our franchisee base.”

The announcement came as Wendy’s also forecast a disappoin­ting outlook for 2015 and reported preliminary revenue for its fourth quarter that missed expectations.

Revenue fell 15.3 per cent to $502m (£332m), weighed by ownership of fewer stores. Analysts polled by Thomson Reuters forecast $509.1m in revenue.

Wendy’s, which no longer operates in the UK, was famous for its square burgers, baconators and its very thick milkshakes, the Frosty.

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