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Arby's owner takes a bite out of Wendy's with $2.4bn takeover
Independent, The (London), Apr 25, 2008
Business News IN BRIEF
*Wendy's, the US fast-food chain best known for its square burgers, it to be bought by Trairc Companies - which owns the rival chain Arby's - in a $2.4bn (1.2bn) all-shares deal. The tie-up is a victory for Triarc's chairman, the billionaire investor Nelson Peltz, who has been pushing for a shake-up at the company. The merger will create a company with 10,000 outlets and sales of $12.5bn (6.3bn). Wendy's put itself on the market last June under intense pressure from Mr Peltz, who owns 10 per cent of its shares. Wendy's posted a 72 per cent fall in first-quarter profits to $4.14m from $14.7m a year ago. It has been hit by tough competition from McDonald's, which has widened its menu, and Burger King, which has offered a cheaper breakfast menu.
Combining the two companies, while retaining their separate brands, is expected to yield substantial cost savings and help them to better compete against their larger rivals.
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