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Arby's buys Wendy's

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Arby's buys Wendy's

Old 04-24-08, 01:44 PM
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Arby's buys Wendy's

From yahoo.com

Arby's owner buying Wendy's for $2.34 billion stock deal

By MARK WILLIAMS, AP Business Writer
Thu Apr 24, 10:09 AM ET



COLUMBUS, Ohio - After two past rejections, the owner of Arby's shaved roast beef sandwich restaurants is buying Wendy's, the fast-food chain famous for its made-to-order square hamburgers and chocolate Frosty dessert, for around $2 billion.

Triarc Companies Inc., which is owned by billionaire investor Nelson Peltz, said Thursday it will pay about $2.34 billion in an all-stock deal for the nation's third-largest hamburger chain started in 1969 by Dave Thomas. Wendy's had rejected at least two buyout offers from Triarc.

Thomas' daughter Pam Thomas Farber said the family was devastated by the news.

"It's a very sad day for Wendy's, and our family. We just didn't think this would be the outcome," said Farber, 53.

If her father were alive to hear news of the buyout, "he would not be amused," she said.

Thomas became a household face when he began pitching his burgers and fries in television commercials in 1989.

Wendy's International Inc. deferred comment to Triarc, which had nothing further to say right away.

Triarc will pay about $26.78 per share for the company, which has about 87 million shares outstanding. The price is a premium of 6 percent from the company's closing price of $25.32 Wednesday.

Under the terms of the deal, which is expected to close in the second half of the year, shareholders at Wendy's will receive 4.25 shares of Triarc Class A stock for each share of Wendy's stock they own.

Atlanta-based Triarc said its shareholders will have to approve a charter amendment in which each share of its Class B stock will be converted into Class A stock.

The Wendy's board has been studying strategic alternatives since early last year, and expenses related to that contributed to the company's 72 percent drop in first-quarter earning announced Thursday.

Wendy's said its profits totaled $4.1 million, or 5 cents, a share for the quarter ended March 30 compared with a profit of $14.7 million, or 15 cents a share, a year ago. Revenue was down slightly to $513 million from $522 million a year ago.

Wendy's stock is well off its high for the past year of $42.22 that it reached shortly after the committee began its work in the summer. It fell 3 cents to $25.39 in early trading Thursday.

Sales have slid in a struggling economy that has hurt other restaurant chains, too.

The deal caps two chaotic years for Wendy's in which it has sold or spun off operations, slashed its corporate staff and had its wholesome image tarnished by a woman who falsely claimed she found part of a finger in her chili.

Triarc said it will also change its name to include the Wendy's name.

Pushed by activist shareholders, Wendy's spun off its Tim Hortons coffee-and-doughnut chain and sold its money-losing Baja Fresh Mexican Grill. Chairman and CEO Jack Schuessler abruptly retired in March 2006, months after a woman and her husband were sentenced to prison for extortion for their plot in March 2005 to plant part of a human finger in a bowl of chili at a San Jose, Calif., Wendy's restaurant and claiming it was served to her.

Farber said the family didn't think much of Peltz' and Triarc's tactics.

"They came after them (Wendy's) and came after them and came after them. They spun Tim Hortons off, they did this, they did that. They did everything they asked but it wasn't enough."

Farber said she had just gotten off the phone with her sister Wendy, 46, the company's namesake.

"She's feeling horrible. She just is devastated," Farber said.

Farber said the family had a supported an alternate bid led by Wendy's franchisee David Karam, president of Cedar Enterprises Inc.

"We knew what Dave Karam's commitment was to Wendy's, his family's commitment just as ours. His dad was a very good friend of our dad's and was one of the very first franchisees, so there's a lot of history."

Peltz, who runs the Trian Fund, and his allies own 9.8 percent of Wendy's stock. Arby's has more than 3,000 restaurants.

He had argued in a letter to Wendy's chairman James Pickett that Triac would be a natural buyer of Wendy's. Peltz gained three seats on the company's board last year.

Thomas, who died in 2002, opened his first restaurant in a former steakhouse on a cold, snowy Saturday in downtown Columbus on Nov. 15, 1969. He named the chain after his 8-year-old daughter Melinda Lou nicknamed Wendy by her siblings.

The smiling Thomas, always wearing a white short-sleeved shirt and red tie, touted the virtues of fast food in humorous ads, often featuring big-name stars such as bluesman B.B. King and soap opera queen Susan Lucci. He appeared in more than 800 ads.

Wendy's, based in suburban Dublin, operates about 6,600 restaurants in the United States and abroad. It trails McDonald's and Burger King Holdings Inc. in the burger business.
http://news.yahoo.com/s/ap/20080424/ap_on_bi_ge/wendy_s

Ready for those roast beef frostys?
Old 04-24-08, 01:47 PM
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I was just going to post this..

I honestly didn't know Arby's had enough financial backing to pull something like this off. Granted Wendy's isn't too popular in California as it is, but there's TWO Arby's within a 30 mile radius of where I live. They're nowhere to be found.. and there has to be twice as many Wendy's restaurants in the US than Arby's. I would think it would be the other way around..

Am I the only one who doesn't understand how Burger King is more popular? Their entire menu makes me want to vomit.. minus breakfast.
Old 04-24-08, 01:50 PM
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sold its money-losing Baja Fresh Mexican Grill
I'm surprised that Baja Fresh loses money. They seem very popular around here.
Old 04-24-08, 01:52 PM
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Cool, with Arby's running the show now I can stop by Wendy's and get something off their four-dollar menu!!
Old 04-24-08, 01:53 PM
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I didn't think Arby's was bigger then Wendy's either.

I also thought Baja Fresh would do well. They're popular around me too, and I prefer it to other places like La Salsa.
Old 04-24-08, 01:54 PM
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Does Triarc currently own anything other than Arby's?
Old 04-24-08, 02:00 PM
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Am I the only one who doesn't understand how Burger King is more popular? Their entire menu makes me want to vomit.. minus breakfast.
Burger King is the god of fast food. It's so delicious.

Hopefully this purchase will result in Wendy's serving Pepsi products like Arbys. I'm sick of all the burger places serving Coke.
Old 04-24-08, 02:06 PM
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Originally Posted by mcfly
Granted Wendy's isn't too popular in California as it is
What? I can think of about 3 or 4 of them around where I live and there is only 1 Arby's. I think Wendy's is plenty popular in California.

I wouldn't mind if they did a combine of them all though. My wife likes Wendy's and I like Arby's. If they could have both at the same drive through that would be excellent.
Old 04-24-08, 02:06 PM
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Burger King is definitely my favorite as well. I tried Baja Fresh when it opened around here. I thought it was over-priced for what they gave you.
Old 04-24-08, 02:09 PM
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Originally Posted by jonw9
Cool, with Arby's running the show now I can stop by Wendy's and get something off their four-dollar menu!!
No kidding. Arby's is just as bad as Sonic when it comes to high prices. And at least Sonic has the Route 44 to keep folks coming in during the summer.

Like several others, I didn't know Arby's had that kind of money. At the restaurant near me, they're just getting around to fixing the parking lot that's been in disrepair for years. I figured it was a sign of the company being broke.
Old 04-24-08, 02:11 PM
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I like Wendy's. I lurv Arby's. Cool beanz.
Old 04-24-08, 02:11 PM
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Originally Posted by fumanstan
I didn't think Arby's was bigger then Wendy's either.
Same here! I thought Arby's was doomed to fail.

I, too, very much prefer Wendy's over Burger King and McDs, although not over Sonic or Jack in the Box.
Old 04-24-08, 02:32 PM
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Originally Posted by General Zod
What? I can think of about 3 or 4 of them around where I live and there is only 1 Arby's. I think Wendy's is plenty popular in California.
I know of two off the to of my head in metro-Sac. I know there's others I passed, but there aren't ANY near my house. We have McDonald's, Jack in the Box, and Carl's Jr at every corner. Wendy's though.. almost nowhere to be found.

And as for Arby's, they don't seem that popular out West. Like I said earlier, I can think of two in all of metro Sacramento.
Old 04-24-08, 02:33 PM
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Wendy's is bigger around these parts than Arbys is.
Old 04-24-08, 02:49 PM
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If her father were alive to hear news of the buyout, "he would not be amused," she said.
If her father had eaten less of that Wendy's food, maybe he would be alive.
Old 04-24-08, 02:51 PM
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Burger King > Wendy's > Arby's > anything else > McDonalds
Old 04-24-08, 03:11 PM
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At least In-N-Out Burger is safe - no one shall touch them!
Old 04-24-08, 03:11 PM
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Originally Posted by jonw9
Cool, with Arby's running the show now I can stop by Wendy's and get something off their four-dollar menu!!
First thing I thought of, I like how Wendy's has variety like getting a chili and a salad, not just always fries. And love the value menu.

Hope this Arby's acquisition doesn't raise wendy's prices. Love the Arby's food, hate the prices.

Also, I've always wondered why someone hasn't started a roast beef type place for competition for Arby's? If someone started a place like that and just had reasonable prices, they would take Arby's out of business in a second. And atleast in my area Arby's service has always been terrible.
Old 04-24-08, 03:15 PM
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Originally Posted by Duh Vuh Duh

Also, I've always wondered why someone hasn't started a roast beef type place for competition for Arby's? If someone started a place like that and just had reasonable prices, they would take Arby's out of business in a second. And atleast in my area Arby's service has always been terrible.

For years in the east/mid-atlantic, Roy Rogers was that competition. In fact, there were far more Roy's than Arby's. Unfortunately, Hardees bought out Roy's and most Roy's disappeared. Recently, Roy's has been resurrected but there aren't that many - at least not that I've seen. Roy's roast beef is far superior to Arby's.

And yes, Arby's is very slow. There is one in the mall right by me, and it takes at least 5 minutes to complete a normal order.
Old 04-24-08, 03:22 PM
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Originally Posted by Brian Shannon
Burger King > Wendy's > Arby's > anything else > McDonalds
Would agree with this, especially the part with McDonalds being the bottom of the barrell... I still dont see how Arby's does this. In every place Ive lived, Wendy's out numbers Arbys at least 3 to 1 and here in NYC, I can think of only 3 Arby's, and one of them just opened in the Queensboro Mall.
Old 04-24-08, 03:27 PM
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Yeah, I looked it up, 10 Wendy's, 3 Arby's in my area.
Old 04-24-08, 03:33 PM
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Originally Posted by Red Dog
For years in the east/mid-atlantic, Roy Rogers was that competition. In fact, there were far more Roy's than Arby's. Unfortunately, Hardees bought out Roy's and most Roy's disappeared. Recently, Roy's has been resurrected but there aren't that many - at least not that I've seen. Roy's roast beef is far superior to Arby's.

And yes, Arby's is very slow. There is one in the mall right by me, and it takes at least 5 minutes to complete a normal order.
Roy Rogers was HUGE in the East in the 80s when I was growing up. There's only a few that remain in New York at Service Areas along the NYS Thruway.. with only a few standalone locations.

In the early 90s Roy Rogers was having problems staying afloat due to competition from Arby's, so Hardee's bought them along with a franchisees chunk of Wendy's restaurants. He ended up converting both Wendy's and Roy Rogers into Hardees.. but they didn't fare well and almost all of them closed.

Recently, as someone pointed it, the owenership of Roy Rogers has gone back to the original owner and a revitalization effort is under way to expand again. Whether or not this will happen has yet to be seen.. but anything's possible.



Nothing can beat Roy Rogers. Awesome french fries, burgers, roast beef, mashed potatoes. Oh man.

Ohio also has Rax Roast Beef..

Never eaten there though. I don't think there's too many left.

Last edited by My Other Self; 04-24-08 at 03:35 PM.
Old 04-24-08, 03:53 PM
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If only we could get a Sonic in the Baltimore area. I'm tired of seeing the ads and not being able to go
Old 04-24-08, 04:09 PM
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Originally Posted by mcfly
Ohio also has Rax Roast Beef..
Wow, we had Rax for awhile in the '80s but I think Arby's had a bigger piece of the market and Rax faded away. Rax had a McRib-esc sandwich that was pretty good.

When I was in Arby's as a kid (when they had the big hat sign) you could see the metal machine for slicing the roast beef just beyond the counter.

Finally: If Wendy's had bought Arby's would they have been able to get a 4 for 5 deal?
Old 04-24-08, 04:09 PM
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Originally Posted by achau9598
If only we could get a Sonic in the Baltimore area. I'm tired of seeing the ads and not being able to go

Yeah - it pisses me off too. Sonic rocks. It's like they skipped over DC and Baltimore. They come up to Fredericksburg, skip over Wash & Balt and then there are some up by Lancaster/Harrisburg. There are also some over in Delaware.


There's only a few that remain in New York at Service Areas along the NYS Thruway.. with only a few standalone locations.
Weren't they also in all the NJ Tpk service areas?

The only Roy's I've been to in the last decade is the one on US-15 in Thurmont, MD, just north of Frederick - I always stop there if I am going up to PA.

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