Wendy’s to sell Ohio-based bakery operation, 640 restaurants
Popular burger chain, Wendy’s has decided to sell its Ohio-based bakery operation, New Bakery Company. It also plans to sell more than 600 of its company-owned restaurants to franchises.
The moves aren't indicative of struggling financial times however, as the brand's share prices have increased by more than 30 per cent in the last year.
Still, according to the announcement made during today’s earnings call, the move to sell the bakery would give the chain the capital it needs to purchase higher quality buns from outside suppliers.
Wendy’s chief financial officer, Todd Penegor said the brand felt that “the appropriate thing to do would be to put it in the hands of a true bakery operator.”
In recent years, Wendy’s has sought to set itself apart from other similar chains by offering a variety of artisanal breads, including the brioche buns, flatbreads, and pretzel buns.
However, the slight sales boost from the menu additions wasn’t enough to make the ownership of the bakery worthwhile.
Wendy’s will continue to make purchases from New Bakery Company once a sale has been finalized.
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