Glacier FarmMedia COVID-19 & the Farm

Wendy’s sells stake in Arby’s owner

(Haigwood Studios photo,

Reuters — Hamburger company Wendy’s Co. ended its decade-old ties with Arby’s as it sold its 12.3 per cent stake in the sandwich chain’s parent for US$450 million on Thursday, giving it a boost as it battles larger rivals McDonald’s and Burger King.

Wendy’s will sell its stake to Inspire Brands, owned by Roark Capital, at a price 38 per cent higher than its most recent valuation of the investment, Wendy’s chairman Nelson Peltz said in a statement.

The company also approved a new $100 million share buyback program (all figures US$)(.

Wendy’s shares rose 2.8 per cent in early trading, hitting their highest level in over a decade.

Peltz bought struggling Wendy’s in 2008 for $2.3 billion through Triarc Cos. Inc., which also owned Arby’s at the time, and formed Wendy’s/Arby’s Group Inc.

Wendy’s/Arby’s sold Arby’s in 2011 to hedge fund Roark Capital for about for about $130 million, retaining an 18.5 per cent stake worth about $30 million at the time.

The stake got diluted to 12.3 per cent after Arby’s bought Buffalo Wild Wings Inc earlier this year, following which a holding company, Inspire Brands, was formed.

Inspire’s portfolio includes more than 4,600 Arby’s, Buffalo Wild Wings and R Taco locations worldwide. Its Canadian locations include almost 60 Arby’s sites and over a dozen BWW outlets.

— Reporting for Reuters by Uday Sampath in Bangalore.

Tagged , , , , , ,
COPA Medallion COPA finalist in 2012, 2014 and 2015.
©2020 AGCanada is a production of Glacier FarmMedia Limited Partnership. Any affiliated or third party content is the property of its respective owner and is used with permission.
Please refer to Copyright Page for details.
Click here to view our Website Terms of Use.