DUBLIN, OH-Wendy’s International’s management is looking at selling the fast-food company. The move follows a statement last month that executives were exploring strategic alternatives that could have included a sale.

“While a sale remains only one of the alternatives under consideration, we believe it merits more thorough examination,” says James V. Pickett, Wendy’s chairman, in a statement. Management has given no timetable for the sale of the business. It has hired JP Morgan, as lead adviser, and Lehman Brothers as a co-adviser for the process.

Wendy’s executives are also lowering the company’s earnings-per-share guidance for the year from $1.26 to $1.32 per share to between $1.09 and $1.23. The downturn is due to lower-than-expected, same-store sales. During the first quarter, which ended April 1, same-store sales rose 3.8% year over year, while they have only come in at a 0.7% pace in the current quarter.

Kerri Anderson, the company’s chief executive officer and president, says that the lower same-store sales are due to menu prices cuts that the company has instituted to “bring Wendy’s more in line with the market.” Executives hope these cuts will improve long-term margins.

At the end of its first quarter, Wendy’s operated 6,658 restaurants internationally. Management anticipates 65 to 90 new-unit openings this year and as many closures.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper

 

GlobeSt Net Lease Spring 2024Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.