Wendys Brings in $31 Million on Sale of Baja Fresh Chain

Wendy''s (NYSE:WEN) made an announcement today on a definitive agreement to sell the Baja Fresh Mexican Grill restaurant chain to a west coast restaurant operating company for an estimated $31 million. The deal is expected to close during the fourth quarter of 2006. Baja Fresh operates close to 300 Mexican restaurants in the United States. The group purchasing Baja Fresh is a consortium of Investment Groups lead by David Kim. Mr. Kim and his team are experienced restaurant and retail operators. Being a franchisor and franchisee, the group has multiple national brands including Sweet Factory, Cinnabon, KaBloom, and Denny's. The Company's more than 3000 employees are dedicated to supporting the 400 plus company owned franchise locations across the U.S. 'This transaction, as well as our September 29th spin-off of Tim Hortons, will allow us to sharpen our focus on the Wendy's brand,' said Kerrii Anderson, Wendy's interim Chief Executive Officer and President. 'We wish all the best to the employees and franchisees of Baja Fresh.'