Wendy's sells Arby's to Roark equity firm

By Bizclik Editor


There seems to be some commotion in the fast food world as the Wendy’s chain known for its square burgers has agreed to sell Arby’s to equity firm Roark Capital Group. Arby’s Group announced Monday that it will sell the stake in its struggling Arby’s brand. The short-lived union of the burger chain and roast beef sandwich restaurant began in 2008 and represents a role reversal, according to reports on Forbes. Apparently, Arby’s was the one to initiate the merger and then found itself being dumped.

In an interview with the Associated Press, Wendy's/Arby's Group CEO Roland Smith said that the merger of the two fast-food chains had "absolutely not" been a failure.

"I think that at the time we put the two brands together it was the exact right thing to do," Smith said in an interview with Forbes, "but any business that continues to do well and perform has to be nimble and adapt to what the market is."

See top stories in the WDM Content Network:

 Wendy's/Arby's shares rose 14 cents, or 3 percent, to $4.66 in late-morning trading, as investors began to see more clarity about the company's future. Shares still remain well below $5.90, the price on the day the merger was announced in September 2008.

According to news reports, Roark, owns Moe's Southwest Grill, Cinnabon and other restaurants, will pay $130 million in cash for an 81.5 percent stake in Arby's. It also will assume $190 million worth of Arby's debt.


Featured Articles

JPMorgan Chase: Committed to supporting the next generation

JPMorgan has unveiled a host of new and expanded philanthropic activities totalling US$3.5 million to support the development of apprenticeship programmes

How efficient digital ecosystems became business critical

During this unprecedented era of rapid digital transformation, establishing a well-functioning ecosystem stands to benefit both employees and customers

Mastercard: Supporting clients at a time of rapid evolution

Mastercard has announced a significant expansion of its consulting business with the launch of new practices dedicated to both AI and economics

Why Ceridian has boldly rebranded to Dayforce

Human Capital

McKinsey’s eight lessons in leadership for aspiring CEOs

Leadership & Strategy

KPMG: The biggest challenges facing global CEOs in 2023

Leadership & Strategy