News

Wendy's expects to complete refranchising initiative in Q1

February 27, 2014

Wendy's reported its audited results for 2013, which included a full-year net income of $45.5 million, compared to $7.1 percent in 2012.

The company continues to accelerate its brand transformation through its system optimization initiative, and introduced several new products. These were the drivers in the North American system's same-store sales growth of 1.9 percent and record average annual sales of $1.51 million at company-owned restaurants, CEO Emil Brolick said in a news release.

"Most importantly, the progress we've made with our various initiatives has positioned the Wendy's brand for further growth in 2014, as we expect to nearly double the pace of our Image Activation reimages, continue introducing innovative products and complete our system optimization initiative."

Wendy's also expects to complete the sale of approximately 415 restaurants by the end of the first quarter and anticipates total proceeds of approximately $235 million, including $138 million received in 2013. As part of its system optimization initiative, the company sold 244 restaurants in 2013 and has sold, or has signed purchase agreements or letters of intent to sell, a total of 174 additional restaurants.

Wendy's also reported that it has completed or initiated more than 200 Image Activation reimages of restaurants in 2013 and plans to nearly double the pace in 2014, with the reimaging of 200 company-operated restaurants and 150 to 200 franchise-operated restaurants.

Wendy's also expects 15 new company-operated Image Activation restaurants and 45 new franchise-operated Image Activation restaurants in 2014. The company continues to target the implementation of Image Activation in 85 percent of its company-operated restaurants and 35 percent of the North America system by the end of 2017.