Wendy's/Arby's Group Considers Spinning Off Arby'sWendy's/Arby's Group (WEN), the third-largest fast food company in the U.S., said Thursday it is considering selling the Arby's Restaurant Group to focus on the Wendy's brand.

Arby's is the second-largest quick-service sandwich chain in the U.S. with nearly 3,700 restaurants, the company said. While Arby's has posted same-store sales declines in some recent quarters, in the fourth quarter of 2010, company-operated stores saw a 3.1% same-store sales growth.

"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," said activist investor Nelson Peltz, who is also chairman of the holding company.

Peltz has been pushing for such a move, saying Wendy's is better positioned to compete in this market. Arby's performance during the economic downturn lagged behind that of Wendy's.

Wendy's currently has more than 6,500 restaurants in more than 20 countries. "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," said president and CEO Roland Smith.

According to The Wall Street Journal, Peltz's hedge fund, Trian Fund Management LP, owns a 24.3% stake in the company, which was created through the 2008 merger of the Arby's and Wendy's chains. Wendy's/Arby's joins a long list of fast food restaurant companies that are trying to reposition themselves as the economy improves through deals, new menu options and store remodeling.

Wendy's/Arby's said it had hired UBS Investment Bank (UBS) to assist in the sale process.

Shares of Wendy's/Arby's jumped by as much as 6% in premarket trading Thursday to $4.80.


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thudula

Can you get Arby's to find another "Soft Roll Supplier" The rolls are nasty tasting and synthetic in qulity. The beef is EXCELLENT and all other foods.

January 20 2011 at 4:12 PM Report abuse rate up rate down Reply
BRYAN STEILKIE

I like Arby's better than any other fast food resturant. Wendy;s on the other hand, in this area, is not too good. They are not kept clean, and the way they operate the order line is a mess. They have the most inefficent system of ordering you meal of any of the fast food resturants around here. There's always a back-up even if there is only 6 people waithing for orders. Always trash on the floors and the floors look dirty. I will not eat in a dirty resturant. I know if it's that dirty out front, it has to be terrible in the kitchen.
Keep Arby's open please.

January 20 2011 at 4:01 PM Report abuse rate up rate down Reply
j~

Here's a fact about Arby's.... their roast beast is 100% beef, and by that I mean they use 100% of the cow, except maybe the anal parts. Maybe. Next time you eat a roast beastie, note the silvery way the meat shimmers.... That is because cows brains and eyes are used as the binder (glue) for the meat. Bon Appetit! :)

January 20 2011 at 3:20 PM Report abuse rate up rate down Reply
1 reply to j~'s comment
alfredschrader

Back in the 1960's Arby's used real sliced juicy medium-rare roast beef.
I still make them like that on a real kaiser roll, but I don't work at Arby's, sorry.

January 20 2011 at 3:48 PM Report abuse rate up rate down Reply
joejteacher951

Arby sounds good! has been a quality fast food resturant! But just needs to upgrade it meat choices and be a little more upbeat in its quality of service! other wise just upgrade the copliments and the sauces and charge more! it should be a pastrami paradise for consumers! Change the name to Pastrami paradise or PP! Not Arbys

January 20 2011 at 2:57 PM Report abuse -1 rate up rate down Reply
threedawgknights

Sell it to CHINA, they own everything else in USA

January 20 2011 at 2:54 PM Report abuse +1 rate up rate down Reply
ahcrod

I know what, let's all go home and COOK a meal for a change. Remember????

January 20 2011 at 2:49 PM Report abuse +2 rate up rate down Reply
2 replies to ahcrod's comment
threedawgknights

rofl, man that wold be a sight! A mother cooking a meal for the family? Or better yet a man cooking a man for himself LMAO, I'm holding back the tears

January 20 2011 at 2:56 PM Report abuse +2 rate up rate down Reply
j~

One day, while walking through my home, I stepped into what I believe was meant to be the kitchen.... I could hear the hum of the appliances. Very scarey.

January 20 2011 at 3:24 PM Report abuse +1 rate up rate down Reply
wal5we

what's wrong with so many people...this is all fast food, designed to be cheap and convenient. Don't expect ground sirloin or fillet mignon grilled to perfection for $2-3 ! If you want the finest meats and cooking go to a specialty establishment and expect to pay ALOT more.

January 20 2011 at 2:32 PM Report abuse +2 rate up rate down Reply
2 replies to wal5we's comment
tetonauto

In N Out is clean, fast, inexpensive, and tasty EVERYTIME. There is nothing wrong with expecting the same from the other fast food chains.

January 20 2011 at 2:46 PM Report abuse +2 rate up rate down Reply
j~

I love IN-N-Out burger. I wish Florida had them. ... But that is about the only thing I wish Florida had from California. :)

January 20 2011 at 3:26 PM Report abuse rate up rate down Reply
thomasva6

i know what the problem is. wendys employes alot of mexicans that cant speak english and screw up the order. arbys is overprised.

January 20 2011 at 2:08 PM Report abuse -2 rate up rate down Reply
2 replies to thomasva6's comment
thomasva6

overpriced

January 20 2011 at 2:08 PM Report abuse rate up rate down Reply
threedawgknights

what the heck is overprised? You mean overpriced? or Arby's is a giant prize.

January 20 2011 at 2:58 PM Report abuse rate up rate down Reply
richsonny61

WELL LOOKS LIKE ITS TIME BUY THEM UP COME ON EVERYONE LETS GIVE THEM A BAIL OUT WE CERTAINLY HAVE MORE MONEY TO THROW AWAY DONT YOU ? MAN- I GOING TO MISS THAT PROCESSED MEAT !

January 20 2011 at 1:21 PM Report abuse -1 rate up rate down Reply
dwooo

The real Wendy's died with Dave. The meat is very strange now.

January 20 2011 at 1:06 PM Report abuse +5 rate up rate down Reply
3 replies to dwooo's comment