According to a Ohio press release, the Wendy's company announced the sale of 70 restaurants in the Dallas-Ft. Worth metroplex to Texas-based MUY Hamburger Partners, LLC, which is a Wendy's franchisee. The transaction is said to be part of the company's system optimization initiative, which is designed to promote new restaurant growth and re-imaging, while generating a more predictable revenue stream for the company.
Wendy's has completed the sale of 314 restaurants, and expects to complete the sale of around 415 restaurants by the end of the first quarter. With the purchase of the Dallas-Ft. Worth restaurants, MUY Hamburger Partners, led by President and Chief Executive Officer James Bodenstedt, will now operate a total of 87 Wendy's restaurants in Texas.
The purchase agreement includes a commitment to reimage selected restaurants in Wendy's contemporary restaurant design, as well as development plans for new restaurants. The company expects to generate a higher operating margin and stronger free cash flow, along with further enhancing the quality of its earnings with a more predictable revenue stream from a higher percentage of royalty and rental income.
"Jim is a tremendous operator with strong operational focus and customer service orientation," said Wendy's President and Chief Executive Officer Emil Brolick. "We're confident the MUY organization has the talent, proven experience and resources to build on Wendy's strong presence in the Dallas-Fort Worth market through restaurant reimaging, new development and other growth initiatives."