Wendy’s moves forward with plans to sell hundreds of units

Wendy's Co. sold 30 restaurants in the St. Louis market to a partnership headed by former NBA player Junior Bridgeman and current player Chauncey Billups, as the fast-food chain looks to sell hundreds of company-owned locations.

With this deal, Mr. Bridgeman, who is Wendy's second-largest franchisee, now has total or partial ownership of 196 Wendy's restaurants. The deal represents Mr. Billups's initial foray into the restaurant industry.

Wendy's last month unveiled plans to sell about 425 company-operated restaurants to franchisees in an effort to concentrate its ownership geographically and reduce total system ownership to 15% from 22%. The plan is expected to be completed by the middle of next year.

"We are expanding our relationship with successful, well-capitalized franchisees with strong operating credentials," Wendy's President and Chief Executive Emil Brolick said Tuesday.

Financial details of the deal to the franchisee company, BB St. Louis LLC, weren't disclosed. It includes a requirement that the new owners redesign certain restaurants as part of the company's reimaging effort.

Wendy's has been aiming to be viewed as "a cut above" traditional fast food restaurant—launching premium burgers, salads and sandwiches, which also generate higher profit margins.

But the company has said that this year it plans to focus more on low-price menu items to compete with McDonald's Corp. and other fast-food chains that are attracting more cost-conscious consumers. As McDonald's shifted back to promoting its Dollar Menu, Wendy's launched a "Right Price, Right Size" menu, among other promotions.

Last month, Wendy's said it swung to a second-quarter profit as its restaurant margins and same-store sales improved.