Jack Schuessler, CEO of US diner-chain Wendy’s, revealed to investors at a meeting last Thursday (16 November) that international operations will soon cease to be the prime focus of long term target for lifting earnings by 12 to 15%.
Profit of US$6.1m was accrued by international business during the first three quarters this year, but the company, which controls 685 outlets in Latin America, Asia, Europe and Canada, has been dogged by weak performance in Argentina. Operating losses here alone reached US$3.2m, and Wendy’s is now admitting that investment plans in such areas would be reviewed.
“The group continues to support franchisees’ business plans and growth objectives in more than 30 countries and territories around the world,” said a spokesman for Wendy’s. As Schuessler explains, however: “going forward, the best way that we can create value is to focus on our core business of Wendy’s in North America and [coffee shop chain] Tim Hortons in Canada.”