GE Capital Franchise Finance, an operating unit of
General Electric Company
), recently provided a $100 million credit facility to
quick-service restaurant (QSR) operator
The Wendy's Company
) to facilitate its total brand transformation.
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The Dublin, Ohio-based fast food company is currently undergoing
a rebranding process titled 'Image Activation' to better connect
with customers and attract more footfalls. This includes a
refurbished design that includes lounge seating, flat-screen
televisions and wireless Internet service. Nearly 150 restaurants
from Wendy's franchisee list have already applied to rebrand
themselves, about 100 of which are expected to be open nearing
completion of construction by the end of this year.
In addition, Wendy's is also tweaking its brand logo to
reposition its brand. The new logo depicts its strategic shift
from hamburgers-only focus to a larger arena of various other
quick service offerings. The company has even removed words like
'old-fashioned hamburgers' from the logo design. The mascot too
has undergone few changes and now sport new backdrop and frames.
The refreshed logo was put into effect on packaging, advertising,
crew uniforms, menu boards and websites from Mar 2013.
The credit facility from General Electric would be crucial for
Wendy's to meet such huge rebranding expenses. On the other hand,
an association with one of the leading QSR brands in one of the
biggest brand repositioning exercises that the restaurant
industry has seen is likely to benefit General Electric to
further strengthen its market position.
General Electric is one of the largest and the most diversified
technology and financial services corporations in the world. With
products and services ranging from aircraft engines, power
generation, water processing, and security technology to medical
imaging, business and consumer financing, media content and
industrial products, the company serves over 100 million
Its segments include Power & Water, Oil & Gas, Energy
Management, Aviation, Healthcare, Transportation, Home &
Business Solutions, and GE Capital. With over 30 years of
experience and more than $7 billion in served assets, GE Capital
Franchise Finance provides financing to mid-market operators with
multiple stores in the restaurant and hospitality industries.
General Electric currently has a Zacks Rank #3 (Hold). Other
companies in the industry that are worth mentioning include
), both having a Zacks Rank #2 (Buy).