Wendy’s Plans to Drop Doughnuts
Dublin, OH, Wendy’s International announced today that it plans to sell part of its Tim Hortons doughnut and coffee chain. The announcement came weeks after a major Wendy’s shareholder sent a letter urging a spin-off of the profitable Horton’s.
Wendy’s also said that it plans to convert a portion of its company-owned burger restaurants into franchises and sell some of the land it rents to franchises.
The company hopes to complete an initial public offering of 15% to 18% of Tim Hortons stores by the end of next March and plans to retain ownership of the rest of the company.
The chain also plans to close between 40 and 60 underperforming Wendy’s restaurants and sell 217 parcels of land it currently leases to franchisees.
Whole Foods Posts Healthy Growth
Austin, Texas, Lifted by comparable-store sales growth of 15.2%, Whole Foods Market reported sales of $1.1 billion for the third quarter ended July 3, an increase of 23% increase compared to the same period last year. Net income increased 31% to $41.7 million.
“We are producing impressive sales and earnings results even as we compare against one of the best years in our company’s history,” said John Mackey, Whole Foods Market CEO, Chairman and Co-founder, in a prepared statement. “Our comparable stores have produced a sales increase of 12.6% year to date on top of a 15.2% increase last year, our new stores continue to perform above our expectations, producing a record $618,000 in average weekly sales during the quarter, and our net income has increased 27% year to date on top of a 34% increase last year.”
McGuire Named Tweeter CEO
Canton, Mass., Consumer electronics retailer Tweeter Home Entertainment Group named Joe McGuire as president and CEO. McGuire has been serving as interim CEO since March 15. He said today that the company would soon release its third quarter earnings report. “We need an extra day or two to complete the review of our accruals and reserves around our restructuring charges and discontinued operations allocation from our store closing plan,” he said. “Many of these constitute significant estimates on the company’s part, and we want to be sure that we are comfortable with them.”