Profile: The Wendy's Co (WEN.OQ)
17 May 2013
The Wendy’s Company, incorporated on May 6, 1994, is a quick-service restaurant company in the hamburger sandwich segment. Wendy’s is primarily engaged in the business of operating, developing and franchising a system of distinctive quick-service restaurants serving food. At December 30, 2012, there were 6,186 Wendy’s restaurants in operation in North America. Of these restaurants, 1,427 were operated by Wendy’s and 4,759 by a total of 439 franchisees. In addition, at December 30, 2012, there were 374 franchised Wendy’s restaurants in operation in 26 countries and territories other than North America. Wendy’s is also a 50% partner in a Canadian restaurant real estate joint venture with Tim Hortons Inc., a quick-service restaurant chain. The joint venture owns Wendy’s/Tim Hortons combo units in Canada. As of December 30, 2012, there were 105 Wendy’s restaurants in operation that were owned by the joint venture.
During the year ended December 31, 2012, Wendy’s opened 16 new company-owned restaurants and closed 32 generally underperforming company-owned restaurants. In addition, Wendy’s purchased 56 restaurants from its franchisees and disposed of 30 restaurants to franchisees. During 2012, Wendy’s franchisees opened 85 new restaurants and closed 103 generally underperforming restaurants. Wendy’s owned the land and building for 631 restaurants, owned the building and held long-term land leases for 515 restaurants and held leases covering land and building for 281 restaurants. As of December 30, 2012, Wendy’s also owned 67 and leased 203 properties that were either leased or subleased principally to franchisees.
Each Wendy’s restaurant offers a menu specializing in hamburger sandwiches and featuring filet of chicken breast sandwiches, which are prepared to order with the customer’s choice of condiments. Wendy’s menu also includes chicken nuggets, chili, french fries, baked potatoes, freshly prepared salads, soft drinks, Frosty desserts and kids’ meals. In addition, the restaurants sell a variety of promotional products on a limited time basis. Wendy’s also offers breakfast in some restaurants in the United States. The Bakery operates two facilities in Zanesville, Ohio that produce buns for Wendy’s restaurants and other outside parties. The buns are distributed to both company-owned and franchised restaurants primarily using the Bakery’s fleet of trucks.
As of December 30, 2012, the Bakery employed approximately 350 people at the two facilities that had a combined size of approximately 205,000 square feet. Free-standing Wendy’s restaurants generally include a pick-up window in addition to a dining room. The New Bakery Co. of Ohio, Inc. (the Bakery), a 100% owned subsidiary of Wendy’s, is a producer of buns for some Wendy’s restaurants, and to a lesser extent for outside parties. At December 30, 2012, the Bakery supplied 784 restaurants operated by Wendy’s and 2,152 restaurants operated by franchisees. The Bakery also produces and sells some products to customers in the grocery and other food service businesses.
The Wendy's Co
One Dave Thomas Blvd
DUBLIN OH 43017