Wendy’s to buy, expand Baja Fresh restaurants

Mark Williams

Friday, May 31, 2002 | 9:54 a.m.

COLUMBUS, Ohio -- Wendy's International Inc., which owns the nation's third biggest hamburger restaurant chain and the Tim Hortons chain of doughnut shops, is buying the Baja Fresh Mexican Grill restaurant chain for $275 million.

"We have been actively pursuing concepts in the rapidly growing, fast-casual restaurant segment and Baja Fresh is clearly the best in the Mexican category," Jack Schuessler, Wendy's chairman and chief executive, said today in announcing the deal.

Wendy's expects the deal to be completed in June. Baja Fresh will become a wholly owned subsidiary of Wendy's while maintaining its offices in Thousand Oaks, Calif.

The transaction has been approved by both companies' board of directors, Wendy's said.

Baja Fresh had systemwide sales last year of $177 million and has 169 owned or franchised restaurants in 16 states, including Nevada, and the District of Columbia.

It's the second time that Wendy's, based in the Columbus suburb of Dublin, has branched out to acquire a company that sells food beyond its typical menu.

Wendy's bought Tim Hortons coffee-and-doughnut restaurants in 1995. Now, tacos and burritos will be available under the Wendy's umbrella.

Schuessler said Wendy's would like to expand Baja Fresh, which was founded in 1990, to a range of 600 to 700 locations.

"We are convinced that Baja Fresh can become a strong national chain and expand its leadership in the Mexican food category," he said.

Wendy's has nearly 6,100 restaurants in the United States, Canada and other countries. Tim Hortons has more than 2,000 restaurants, nearly all in Canada.

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