Industry News | July 17, 2000
Wendy's Expanding Bakery Operations
The New Bakery Co. of Ohio is a wholly owned subsidiary of the Company with a manufacturing and distribution facility in Zanesville, Ohio. It supplies buns for hamburger and chicken sandwiches to about 650 company operated Wendy's® restaurants and 2,000 franchised Wendy's restaurants. A new 114,000-square foot plant will be built in the East
Point Industrial Park in Zanesville (eastern Ohio), which is about five miles from the Company's existing bakery.
The new plant will ensure quality within the Wendy's system as sandwich bun demand grows because of higher restaurant sales volumes and new restaurant development. Wendy's U.S. same-store sales increased 7.9% in 1999 and are up more than 3% in 2000. The Company expects to build approximately 285 new domestic Wendy's during 2000.
"The current plant produces about 750 million sandwich buns per year and is running at full capacity. We need to expand capacity," said Jack Schuessler, chief executive officer and president of Wendy's International, Inc. "Our bakery operations provide excellent quality and consistency for our restaurants.
"From a financial standpoint, the bakery delivers return on investment consistent with our stated goals to improve returns," Schuessler added. "It also produces positive cash flow and we expect the new plant to be accretive to earnings."
Construction of the new facility will begin in the fall of 2000 and is expected to be in operation by late 2001.
The Zanesville location provides efficient distribution to about one half of the United States. Other approved bakeries that provide quality sandwich buns supply Wendy's restaurants outside of the distribution range.
"We are very pleased to move forward with this project," said Ronald Musick, executive vice president of finance and information technology. "Our current plant management will oversee the engineering and construction of the new facility as well as operations once the facility opens. We have an outstanding work force in Zanesville and the local community has been very cooperative and supportive as we expand there."
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