June 5, 2015

Wendy’s Debt Load: Good for Franchisees? Not.

If one replaces Wendy's with the word McDonald's and triples or quadruples the
numbers in the article the last paragraph certainly applies.

Restaurant Finance Monitor


Anonymous said...

This is not about serving great products to Wendy's customers. This is, like McDonalds, about serving returns to investors. Like McDonalds the revenue to service that debt comes from one place and that is the front counter and the drive thru window. To get more revenue they will use the credit of their operators to build new stores, reimage regardless of the ROI for the operator. It is likely that Wendy's rent and service fee's will slowly increase and cash flow will decrease. This debt, in my opinion, is not about giving a better experience to the customer. Putting your life savings and energy into a quick service franchise is becoming very risky business.

Anonymous said...