Wendy Bets on $200 million on a $16 dollar burger.

Wendy’s fast food restaurant is betting their return to Japan on a $16 Foie Gras Rossini. The company left Japan in 2009 after 29 years, closing 71 locations (which equaled 20% of their overseas operations) after they closed their relationship with the sole franchise owner, Zenscho Co.

The company knew that they departure from Japan would be short lived and believe that  a new franchise or joint venture partner would provide significant opportunity for the company, they grossed $70 million in sales in 2009.

 

The companies invested $200 million on the plan to return to Japan, and are betting it all on their signature burger. The Foie Gras burger has the traditional square patty topped with truffle butter.  Such a dish would not be popular in North America, but following McDonalds lead on localized menu items, the Japanese diner appreciates the localized menu.

 

Wendy is the world’s 3rd largest quick service hamburger company and owns a variety of corporations such as Arbys, T.J Cinnamons and Pasta Connection in their business portfolio. Their company trades on the NYSE under the symbol WEN. Their first location in Japan will be located in Tokyo’s Omotesando area and they plan to open 100 restaurants over the next five years and believe the country can support up to 700 restaurants. They will be rolling out their restaurants through a joint venture with Higa Industries who operated 180 Domino Restaurants.

 

Wendy’s was down 1.30% today to $5.34 US.

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