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On the heels of news that <a href="https://www.wendys.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=wendys-announces-plans-to-sell-640-company-owned-restaurants-1591" target="_blank" rel="nofollow" target="_blank">Wendy&#8217;s</a>&nbsp;will be partnering with
Honest Tea to bring an organic product to its menu, the brand announced today it is planning to sell 640 restaurants in the United States and Canada to
franchisees to increase cash and lower expenses. <o:p></o:p>The brand had previously announced its plans to sell certain restaurants to lower the number of company-operated locations, and plans on now selling 380 restaurants by year&#8217;s end and 260 restaurants next year. This plan will give the brand $400-$475 million in pretax income and &#8220;significantly reduce future capital expenditure requirements.&#8221; "Going forward, we intend to buy and sell restaurants opportunistically to act as a catalyst for growth by further strengthening our franchisee base, driving new restaurant development and accelerating Image Activation adoption," CEO Emil Brolick said in a statement. The Dublin, Ohio-based brand posted first quarter earnings of $27.5 million compared to $46.3 million one year ago. Read more <a href="http://www.usatoday.com/story/money/2015/05/06/wendys-selling-640-restaurants-first-quarter-earnings/70879626/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=wendys-announces-plans-to-sell-640-company-owned-restaurants-1591" target="_blank" rel="nofollow" target="_blank">here</a>.

1851 Franchise

Fast-food chain hopes to increase cash and lower expenses through franchisees. 

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