A major Pizza Hut (NYSE:YUM) franchisee has decided that it wants to offer its customers a more balanced set of meal options, so it's buying two dozen Kansas City-area Wendy's (NASDAQ:WEN) stores.
The franchisee, NPC International, said it was searching for another brand to invest in and selected Wendy's because it was an established, national brand with the opportunity to acquire more locations, NPC CEO Jim Schwartz told the Kansas City Business Journal.
This acquisition makes Overland Park-based NPC the largest franchisee of Wendy's in the Kansas City market. Schwartz said it will focus on acquiring additional locations in the Midwest, Southeast and Mountain West. "We believe that there will be ample opportunity with growth through acquisition, much like we have done in the Pizza Hut system," Schwartz said during a conference call with investors.
NPC has agreed to update certain restaurants with Wendy's new interior design plan, which was rolled out in 2011. The updated restaurants incorporate lounge seating with fireplaces, flat-screen TVs, Wi-Fi and digital menuboards. Twelve of the restaurants will be updated during the course of five years. Fourteen of the Wendy's locations are fee-owned locations, which will be leased from Wendy's for $2 million.
- See Kansas City Business Journal story
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