WENDY'S/ARBY'S MAY SELL ARBY'S

Published online: Feb 02, 2011 Potato Storage
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Wendy's/Arby's Group, Inc. (NYSE: WEN), the third-largest quick-service restaurant company in the United States, announced it is exploring strategic alternatives for Arby's Restaurant Group, Inc., including a sale of the brand. UBS Investment Bank is assisting in the process.

Arby's is the second-largest quick-service sandwich chain in the U.S. with nearly 3,700 restaurants. Arby's restaurants specialize in slow roasted and freshly sliced roast beef sandwiches as well as Market Fresh deli-style sandwiches, toasted subs and salads, all with the convenience of a drive-through.

Nelson Peltz, Chairman of Wendy's/Arby's Group, said, "We believe the way to maximize shareholder value is to focus all of our management and financial resources on continuing to build the Wendy's brand. Arby's is a good business, and we are making progress improving its performance, as evidenced by the 3.1 percent increase in company-operated, same-store sales in the fourth quarter of 2010. However, despite Arby's positive momentum, the reality is that the Wendy's brand, given its relative size and scope, is the key driver of shareholder return, and we believe we should focus on the execution of the compelling growth opportunities at Wendy's."

Roland Smith, President and Chief Executive Officer of Wendy's/Arby's Group, said, "Wendy's currently has more than 6,500 restaurants in more than 20 countries and is one of the most attractive growth stories in the quick-service restaurant industry. A pure-play Wendy's will enable us to focus all of our energies on growing the Wendy's brand via new store growth both in North America and international markets, and with accelerated same-store sales through the introduction of new dayparts and core menu innovation."

UPDATE:
Wendy's/Arby's Group Inc (WEN.N) reported a surprise quarterly profit on Wednesday, citing progress in the turnaround of its struggling Arby's chain and the success of new products like french fries with sea salt.

The No. 3 U.S. fast-food chain on January 20 announced plans to sell the Arby's restaurants, whose sales at established North American outlets rose 2 percent in the fourth quarter.

At the Wendy's chain, North American same-restaurant sales rose 0.2 percent.

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