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Daily Digit: Wendy's selling 425 locations

Tuesday, July 23, 2013 - 01:04

July 23 - Hamburger chain Wendy's is selling off locations and beefing up menu items as fast-food growth slows down. Conway G. Gittens reports.

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Wendy's is slimming down and that's your daily digit. 425 restaurants currently operated by the Wendy's company are being put up for sale to franchise owners. Wendy's can beef-up its profits by switching ownership -putting the burden on operating a location on the franchise owner. The second largest U.S. hamburger chain is also looking to improve its fortunes with additional menu items like the much-advertised Pretzel Bacon Cheeseburger, which comes with a higher price. And at the same time going after larger rival McDonald's with a value menu called Right Price, Right Size. But results this week may confirm U.S. consumers are less interested in hamburgers. Quarterly revenues rose only slightly from a year ago and sales at restaurants opened at least a year were up, but far shy of expectations. If you're an investor, the company's return to profits and a pledge earnings will grow stronger next year - may be more appetizing. The stock is up solidly following those quarterly results.

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Daily Digit: Wendy's selling 425 locations

Tuesday, July 23, 2013 - 01:04