These should be exciting times for Wendy's: It has revamped its burgers, spun off Arby's, expanded back into Japan, and is going to take another crack at the breakfast game. But despite all that, its share price is around the cost of its value meals, and that's unlikely to change.
Wall Street can be fickle, leaving investors scratching their heads in bewilderment. Some of last week's biggest surprises, blunders, and flat-out bone-headed moves included Morgan Stanley's downgrading of Google, another step toward a LivingSocial IPO, and irrational exuberance with respect to Wendy's stock.
Wendy's/Arby's Group said Monday that it will sell a majority stake in its struggling Arby's brand to a private equity firm. The move marks the end of a short-lived union between the two fast-food chains, and represents a role reversal.
Wendy's/Arby's Group, the third-largest U.S. fast food company, said Thursday it is considering selling the Arby's chain to focus on the Wendy's brand. Arby's is the second-largest quick-service sandwich chain in the U.S., but its performance lagged behind Wendy's during the downturn.
