The Wendy’s Company, the number three United States burger chain revealed the financial results of the first financial quarter and future operations in a conference call on Wednesday.
Swiftly, the company positively surprised financial analysts and topped their expectations. The main announcement is that the company sales increased 3.2 percent, despite the fall in earnings by 40 percent to 27, 5 million dollars. The increase was registered at both franchises and company-owned stores.
This year is set to witness the selling of 380 company-owned restaurants based in both the US and Canada. 2016 will see another 260 restaurants sold in a bid for an estimated 475 million dollars. The announcement increased the stock value of Wendy’s by 7 percent on Wednesday alone. It is reported that at the end of 2014 Wendy’s had an array of 6,515 restaurants across the world.
There is an increase that indicates Wendy’s is on top of its game and their efforts to attract their customers are paying off in outstanding revenues and surprising financial results. Sustained efforts saw the revamping campaign started in 2012 in the search for a new logo or restaurant renovation to bring them back to a contemporary background.
At the same time, with a new face, came a new, more appealing menu. The move was a stepping stone in differentiating and drawing customers away from the main competitors on the market, amongst which Chipotle Mexican Grill and Panera Bread Co..
Albeit the diversifying of the menu, Wendy’s also announced on Wednesday that it is planning to sell the New Bakery Company in Zanesville, Ohio which returned revenues of 61,8 million dollars in 2014. The New Bakery Company produces standard buns and value buns for Wendy’s, but the sale simply aims at more flexibility for the company to acquire higher end buns from other producer in order to offer customers a better taste experience.
Against this background and with a steady increase previewed for the next financial quarter, Wendy’s Company looks to be on the right track when its greatest asset is the value-price area.
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