CnnMoney.com reports that Wendy's will close 15 to 18 of its Baja Fresh Mexican restaurants. The burger company operates 300 fresh-Mex units and has enjoyed success in California and the eastern U.S. Baja Fresh sales have been sluggish, however, in some other markets like Chicago, Nashville and Columbus. These sluggish sales and losses resulted in lower than expected earnings for shareholders.
According to Wendy's, this announcement is only the first wave of initiatives to improve Baja Fresh's numbers. Wendy's stock rose 7% in trading this morning after announcement of the company's plans to address the Baja Fresh problems.
Posted by franchiselawblog at December 1, 2004 07:01 PM