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Unformatted text preview: The Global Acquisition of Wendys International, Inc. Overview-History of Wendys International Inc Page 2-The main competitors and Wendys target Page2-Financial statement in recent years Page 2 The acquisition of Tim Hortons in 1995 Page 3-6 Benefits from the acquisition Page 3-4 The problems of the acquisition Page 4-6 Decision Making, suggestions for Wendys development Page 7-8 Three methods to solve the problem of Wendys Page 7-9 Annotated Bibliography Page 10-11 Overview and history of Wendys International, Inc. 1 Where is the beef? 1 this spiffy television ad comes from the worlds third largest Hamburger restaurant corporation: Wendys International Inc. This smart, humorous and felicitous slogan brought huge achievements for Wendys. In 1964 Dove Thomas, using the millions he earned from turning around the failing Kentucky Fried Chicken franchise, Thomas opened his first Wendys in 1969 2 Since the 1970s Wendys quickly expanded its first non-US restaurant in Canada in 1975. It was a milestone for Wendys as this expansion brought the company to the international stage. There were over 1500 restaurants in 1979 3 . The acquisition of Tim Hortons gave the old fashioned Wendys restaurant enough of a competitive advantage to rival its main competitors, McDonalds and Burger King. Although Wendys has far fewer restaurants than these two competitors; its appeal taste and a health-conscious choice for customers has won a global market. The growth acceleration in conjunction with that of Tim Hortons expanded to US market in 1998. In 2002, 160 units Baja Fresh Mexican Grill and 45% of Caf Express have been acquired by Wendys 4 Presently, Wendys owns more than 6000 restaurants across North America and around the world. There are324 restaurants in Canada 154 units in Japan and 66 units in Philippines. 5 However, the Wendys Net Income after Tax of $224.1 million in 2005 shrunk to $94.3 million in 2006. 6 Furthermore, it has sold 70% stake of Caf Express and is looking to sell 30% stake of Pasta Pomodoro. It also used 15% stake of Tim Hortons to recover from financial deficit. Wendys gain and loss from acquisition of Tim Hortons 1 Thomas Riggs, eds, Encyclopedia of Major Marketing Campaigns: Wendys International, Inc. (Farmington MI: The Gale group published, 2000) 2 Encyclopedia of Major Marketing Campaigns: Wendys International, Inc. 3 . The Wendys Story. 2007, www.wendys.com/about_us/story.jsp (Accessed November 14th 2007) 4 Wendys International, Inc. 2007. Hoovers Company Records November 1, 11621. http://proquest.umi.com/pqdweb? index=0&did=168155961&SrchMode=1&sid=1&Fmt=3&VInst=PROD&VType=PQD&RQT=309&VName=PQD&TS=11 95177462&clientId=11263 (Accessed November 14 th 2007) 5 Francisco Carrada-Bravo, Managing Global Finance in the Digital Economy (Preager Publishers, 88 Post Road West, Westport, CT, 2003), 143 6 Wendys International, Inc. 2007. Hoovers Company Records...
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This essay was uploaded on 04/18/2008 for the course BMOS 020 taught by Professor Mr. during the Fall '08 term at UWO.
- Fall '08