Wendy's Expands Presence In Japan, Acquires First Kitchen

Wendys Co (NASDAQ: WEN) announced on Wednesday its franchisee in Japan, Wendy's Japan, entered into an agreement to acquire First Kitchen Ltd., a restaurant chain in the country that operates 136 locations.

Through the acquisition, the franchisee will expand Wendy's footprint in Japan by converting already existing First Kitchen locations into a new "Wendy's First Kitchen" restaurant concept which offers a "revamped menu and refreshed decor."

Wendy's Japan will also build new locations over time, which offers a combination of its traditional hamburgers and chicken sandwiches along with pasta and other staples First Kitchen is known for.

"The First Kitchen restaurant brand is well-established with a presence in many desirable, busy locations throughout Japan. We anticipate the acquisition will leverage the strengths of both Wendy's and First Kitchen, while providing a springboard for growth in the coming years," said Bob Wright, Executive Vice President, Chief Operations Officer and International, The Wendy's Company.

Wright added, "This is an example of how we are bringing our 'narrow and deep' international strategy to life by initially focusing on four key markets – Japan, India, Brazil and the Middle East – where we see considerable upside potential over the next few years. We believe our best approach is to support our franchisees in building Wendy's brand strength in local markets and enhancing the economic model of their restaurants."