|
 |
Apr-27-2008Will Triarc Save Wendy's?(topic overview)
CONTENTS:
- The Atlanta based chain had been trying to obtain control of the Dublin, Ohio, based chain for over a year. $2.34 billion of Triarc Companies Inc was the number that Wendy's board agreed to today. (More...)
- Wendys shares rose 42 cents, or 1.66 percent to $25.74. (More...)
- Wendy's (NYSE:WEN) shares closed at $26.39 Thursday, up from Wednesday's close of $25.32, while Triarc (NYSE:TRY) shares closed at $6.47, up from $6.30 the day before. (More...)
- Triarc shares rose 5 cents, or 0.79 percent to $6.35 in afternoon trading. (More...)
- Thomas's daughter Pam Thomas Farber said the family was devastated by the news. (More...)
- Wendy's has been seeking "strategic alternatives" for a year, and Triarc is the only one that has been vocal about winning Wendy's hand. (More...)
- The companies will continue to operate as separate business units, with Arby's in Atlanta and Wendy's in Dublin, Ohio. (More...)
- The new board will have 12 members, including two directors nominated by Wendys. (More...)
- If Peltz would have gotten the Trian Acquisition I Corp. (AMEX: TUX ) special purpose acquisition company (SPAC) involved, that $30 level could have probably been reached. (More...)
- Previously reported first-quarter same store sales at U.S. company-operated restaurants fell 1.6%, compared to a rise of 3.8% a year ago. (More...)
- Smith said the new company hopes to improve margins at company-owned stores and improve efficiency to create savings for the combined brands. (More...)
- The burger chain formed a special committee to decide the company's fate last year, and released a statement in January that the decision was nearly complete. (More...)
SOURCES
FIND OUT MORE ON THIS SUBJECT
The Atlanta based chain had been trying to obtain control of the Dublin, Ohio, based chain for over a year. $2.34 billion of Triarc Companies Inc was the number that Wendy's board agreed to today. Pam Thomas Farber, the daughter of founder Dave Thomas whose passing seemed to have doomed the 3rd largest hamburger chains fortunes, expressed her displeasure with the takeover by Triarc Companies Inc. "It's a very sad day for Wendy's, and our family. Wendy's stock price has plummeted over the year and billionaire Nelson Peltz, who is the largest shareholder of Triarc, has made it his goal to takeover the weakened company. Following a poor quarter he finally won over the board who agreed to $26.78 for the company who had traded over $40 a share just a year ago. [1] Atlanta-based Triarc Companies Inc. will pay $2.34 billion for Wendy's, significantly below what the company had been willing to pay for the chain last summer. The all-stock deal calls for Wendy's shareholders to receive 4.25 shares of Triarc stock for each share of Wendy's they own. The deal has been approved by the boards of both companies.[2] Wendy's International Inc. has agreed to be bought by Triarc Cos Inc., the investment arm of billionaire investor Nelson Peltz, in a deal valued at $2.34 billion U.S. that would bring Triarc's Arby's restaurant chain and Wendy's under one umbrella. Under the terms of the deal, Wendy's shareholders would receive 4.25 Class A Triarc shares for each Wendy's share they own, the two companies said Thursday. That would represent a premium of 5.7 per cent to Wendy's shares, which closed at $25.32 Thursday.[3]
After more than two years of rancorous public exchanges with Wendy's, Mr. Peltz and the company's new management will have to win the trust of franchisees and employees. Mr. Peltz, an investor who is known for being a thorn in the side of companies he feels are ignoring his advice, complained publicly about low restaurant profit margins and poor marketing, among other things. He launched a proxy fight and threatened a board takeover, as well as peppering the board chairman with critical letters. Mr. Peltz will be on the board of the new entity and he is expected to play a key role in the new company. He was previously chairman of Triarc. A series of management teams at Wendy's has already tried many of the things, such as a breakfast menu, that the new owners are suggesting, and they haven't fixed the chain. "It is a difficult time from an economic standpoint in the restaurant industry," Mr. Smith said in an interview. He said Wendy's needs to focus more on differentiating itself from burger rivals McDonald's Corp. and Burger King Holdings Inc. by emphasizing freshness and quality. "I think they have an opportunity to regain that ground," he said. Wendy's shareholders will get 4.25 shares of Triarc stock for each share of Wendy's they own.[4] Wendy's jumped 4.6 percent in New York Stock Exchange composite trading after Triarc said it will offer 4.25 shares for each Wendy's share. That values the chain's Class A shares at about $26.78 each, 5.7 percent higher than yesterday's closing price. Peltz, 65, pressured Wendy's for more than two years to sell itself, and he became the chain's largest shareholder as it lagged behind McDonald's Corp. and Burger King Holdings Inc. Wendy's has been seeking a buyer since April 2007. Peltz said in July he might be willing to pay $37 to $41 s share for Wendy's.[5]
At the time of the deal, Wendy's shareholders could expect a 6 percent premium over Wednesday's closing price of $25.32. Peltz at one time said he might be willing to offer $37 to $41 per share. That was before credit markets tightened and the economy grew weaker, said John Owens, a Morningstar analyst. "I think this is a decent deal for shareholders," Owens said. Future prospects depend largely on the Wendy's brand -- "This is the minnow swallowing the whale here" -- and the company still has decent prospects for a turnaround, Owens said. Triarc laid out its plan to improve profits, including $100 million in annual operations improvements at Wendy's company-owned stores, savings of $60 million through elimination of duplicate jobs, and gains from U.S. and international expansion of both brands. The company also said it will explore creating stores featuring both Wendy's and Arby's in some markets where real estate is costly.[6] You might think a sale process that has been languishing since Wendy's put itself up for sale last spring would lead to a lower price. Peltz's offers descended steadily after his initial indication in July that Triac which owns 9.8% of Wendy's might pay as much as $41 a share, an approach that was rejected. In the deal, Wendy's shareholders will get 4.25 Triarc shares for each Wendy's share they own.[7] Total annual sales include $12.5 billion. They will operate as two separate business units with Wendy's and Arby's staying different. The deal has been approved by the boards of both companies. Wendy's shareholders receive 4.25 shares of Triarc stock for each share of Wendy's stock they own. Roland Smith, the CEO of Triarc, will stay in his role, and also become the CEO of Wendy's.[8] The companies will continue to operate as separate business units -- with Arby's in Atlanta and Wendy's in Dublin, Ohio -- but there will be a consolidated support center in Atlanta to "oversee all public company responsibilities and other central service functions." The boards of both companies have approved the deal. It is an all-stock transaction wherein Wendy's shareholders are to receive 4.25 shares of Triarc stock for each share of Wendy's stock they own. Triarc Chief Executive Officer Roland Smith, 53, is to retain that role and add Wendy's CEO to his titles.[9]
The price is a premium of 6 percent from the company's closing price of $25.32 Wednesday. Under the terms of the deal, shareholders at Wendy's, the nation's No. 3 hamburger chain, 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. Triarc said it will also change its name to include the Wendy's name.[10] Wendy's International Inc. deferred comment to Triarc, which had nothing further to say right away. 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. That values each of Wendy's 87 million outstanding shares at about $26.78.[11] NEW YORK (AFP) — Triarc Companies is buying hamburger chain Wendy's International in a 2.3-billion-dollar stock deal aimed at creating the nation's third-largest U.S. fast-food group, the companies announced Thursday. Wendy's shareholders will receive 4.25 shares in Triarc, the owner of Arby's roast beef sandwich chain, for each of their shares.[12] DUBLIN, OH-Triarc Cos., the firm that owns the Arby's fast-food chain, is acquiring Wendy's International in an all-stock deal. Wendy's shareholders will receive 4.25 shares of Triarc class A common stock for each of their shares of common stock.[13]
Among stocks in the news Thursday, Wendy's International ( WEN ) agreed to be acquired by the Triarc Companies ( TRY ), which owns Arby's, in a $2.34 billion all-stock deal.[14] Wendy's International's ( WEN ) disappointing earnings news was overshadowed by a deal with Triarc ( TRY ), franchisor of Arby's, to purchase the struggling fast-food company in an all-stock deal worth $2.34 billion. It marks the end of a nearly two-and-a-half year campaign by Nelson Peltz, who owns 10% of the company through his ownership of Trian Partners, to force a turnaround at the struggling hamburger joint.[15] The year-long pursuit of Wendy's International Inc. by Triarc Cos. and billionaire owner Nelson Peltz, who also controls the Arby's chain, ended with a $2.34 billion all-stock deal for the restaurant company.[16]
After two years of haranguing Wendy's International Inc. management, investor Nelson Peltz finally got his way Thursday as his Triarc Cos. agreed to buy the hamburger chain for $2.34 billion, trumping a competing offer favored by many Wendy's franchisees and employees.[4]
Wendy's signed a merger agreement with Triarc Cos., led by billionaire investor Nelson Peltz, ending an ordeal that began in 2005 when Peltz took a large stake in the company and started pushing for change. Already agreed upon by the boards of directors of both companies, the $2.3 billion deal awaits shareholder approval and is expected to close in the second half of the year. Employees expressed concern about their jobs.[6] Activist investor Nelson Peltz's holding company Triarc Companies has acquired Wendy's International in a $2.3bn ('1.4bn deal) stock swap, boosting the activist investor's food business after nearly a year of negotiations.[17] Triarc Companies Inc, the parent company of Arbys restaurants, agreed to acquire the Wendys International Inc. fast food chain for about $2.3 billion in an all stock deal.[18]
Peltz's Triarc Cos. (nyse: TRY - news - people ) said Thursday it will acquire the Dublin, Ohio-based Wendy's (nyse: WEN - news - people ). Triarc will pay with its own stock in a deal worth about $2.9 billion, including the assumption of long-term debt. Peltz has long craved the ubiquitous chain, making his first offer in July 2007. Even before that, he used a Wendy's stake to push a turnaround. He convinced the company to spin off coffee and doughnut chain Tim Hortons (nyse: THI - news - people ) and got some of his handpicked candidates on Wendy's board.[19] The agreement, which came only after the Wendy's board rejected at least two previous offers, makes the Arby's/Wendy's chain the third-largest quick-service restaurant company in the U.S. with 10,000 restaurants. While Wendy's operations will continue to be conducted out of its Dublin, Ohio headquarters, a central support center will be established in Atlanta (Triarc's home) to handle all public responsibilities. 'We believe the combination of Arby's and Wendy's will create a powerful new restaurant company and a must-own restaurant stock with significant upside potential as we execute on the many opportunities we see to expand and improve these two very valuable brands,' said Triac CEO Roland Smith in a Thursday statement.[20] "Ultimately there's a lot to be realized in synergies and improvement of Wendy's, which certainly has been under-earning for a number of years,'' said Michael Gallo, an analyst at CL King & Associates who advises investors to buy Triarc shares. "Obviously it's going to take some time before all that settles in.'' The company plans to grow by extending its breakfast menu to additional locations, and with international expansion, new store openings and acquisitions. Smith, who started working in fast food at McDonald's Corp. when he was 16, sees expansion in international markets partly through co-branding of the Wendy's and Arby's in some restaurants, similar to what Yum! Brands Inc. does. Dave Thomas opened the first Wendy's in 1969, naming the restaurant after his daughter, Melinda Lou, who was nicknamed Wendy. The company went public in 1976, raising $28 million, and by 1997 had opened its 5,000th restaurant. Thomas began appearing in television ads in the late 1980s after Wendy's retired its "Where's the Beef'' advertising campaign, a series of commercials that helped the chain narrow the gap with McDonald's and Burger King in the 1980s.[5] The deal, which is expected to close in the second half of the year, hands the hamburger chain founded by Dave Thomas over to the parent company of the much-smaller Arby's fast-food chain. Its new leaders plan to expand Wendy's international presence, add breakfast at U.S. locations, and create new marketing geared to an older clientele. Triarc replaced Wendy's Chief Executive Kerrii Anderson with its own CEO, Roland Smith.[4] DUBLIN, OH (AP) One of Dave Thomas' daughters says the family is devastated by today's news that Wendy's is being sold to the parent company of Arby's. Pam Thomas Farber says her father would not be amused and says her sister Wendy is in "horrible" shape. Triarc Companies says it's buying Wendy's International in an all-stock deal worth 2.34 billion dollars.[21]
Some might look at it that way. Others may welcome the deal, considering that the stock was already being supported by expectations of a sale, and, even after a year-long strategic review, the field of rival suitors was distinctly lean. In December 2005, when Mr. Peltz sent a white paper to Wendy's management outlining his grievances, he said that the company's stock, which was trading at around $55 a share, could be worth as much as $88 per share. That was before Wendy's spun off Tim Hortons to its shareholders, so those numbers can't be compared to the current stock price. Wendy's struggled to find direction since its founder and spokesman, David "Dave" Thomas, died in 2002. At the time of Mr. Peltz's initial approach, Wendy's then-chairman, Jack Schuessler, was determined to go it alone: He said in January 2006, "We have a comprehensive plan to deliver value for shareholders today, tomorrow and longer term, and we are executing it." Mr. Peltz and his crew weren't the only ones antagonizing Wendy's: Other large shareholders were urging management in private to do something about the company's fading image and poor marketing strategy. Same-stores sales a key performance measure for the retail industry were in steady decline, as was its stock price.[22] At $26.78 a share, based on Wednesday's closing prices, the value of the deal is significantly less than the $37 to $41 a share Triarc initially said it would be willing to pay for Wendy's in July. That would have put the value of the deal at between $3.2 billion and $3.6 billion. The deal, which still needs approval of both companies' shareholders, brings a year of uncertainty to a close for Wendy's, which announced the formation of a special committee and the possibility of a sale on April 25 last year.[2] The companies said the merger eventually will save $60 million a year by eliminating duplicate corporate functions and streamlining support services. James Pickett, Wendy's chairman and member of a special committee charged with exploring a sale, said the committee wanted to see that shareholders received a premium for their shares. "We believe this transaction with Triarc is in the best interests of all of Wendy's constituencies and represents superior value to what the board anticipates Wendy's would have generated as an independent company," Pickett said in the release.[23] Current Wendy's CEO Kerrii Anderson is not mentioned in the company's announcement. She could not be immediately reached for comment. Triarc also will change its name to incorporate the name Wendy's. The impact on jobs at the Dublin headquarters is not known at this time, but the release put annual savings from the elimination of duplicate corporate functions and streamlined support services at $60 million. James V. Pickett, Wendy's chairman and a member of the special committee charged with exploring a sale, said the committee wanted to see that shareholders received a premium for their shares. "We believe this transaction with Triarc is in the best interests of all of Wendy's constituencies and represents superior value to what the board anticipates Wendy's would have generated as an independent company," he said.[9]
Over the past two years Wendy's has struggled to beef up sales and raise value for shareholders. Pushed by Peltz and other activist shareholders, it spun off its Tim Hortons coffee-and-donuts chain and sold its unprofitable Baja Fresh Mexican Grill. Wendy's reported that its earnings fell 71% to $4.1 million, or 5 cents, a share for the quarter ended March 30, from $14.7 million, or 15 cents a share, a year ago.[24] News of the deal Thursday sent Wendy's shares up 4.2%, or $1.07, to $26.39, while shares of Triarc rose 2.7%, or 17 cents, to $6.47 in 4 p.m. composite trading on the New York Stock Exchange. The problems plaguing Wendy's were plain when it announced its first-quarter results on Thursday. The company said its profit totaled $4.1 million, or five cents a share, in the quarter ended March 30, down from $14.7 million, or 15 cents a share, a year ago.[4] Atlanta-based Triarc is owned by billionaire Nelson Peltz, who had made two previous offers to buy the No. 3 burger chain over the last year. According to AP reports, the final deal was much lower than what Peltz said he was originally willing to pay. Last summer he offered $37 to $41 per share, but only ended up paying $26.78 per share for the company, which has about 87 million shares outstanding.[25] First-quarter profit dropped 32% to $63.2 million, or 28 cents a share, from $93.5 million, or 40 cents, a year earlier, it said Thursday. Billionaire Nelson Peltz has finally succeeded in landing Wendy's in a $2.3-billion deal that would add the chain to his ownership of Arby's and its roast beef sandwiches.[26]
Triarc Companies Inc., which owns Arby's and now Wendy's, will pay about $26.78 per share for Wendy's and declined comment on the deal. Wendy's had experienced a 72 per cent drop in earnings in the first quarter of this year.[27] Honda (NYSE:HMC) said the upcoming months will be difficult because of a rising Yen and a slow U.S. economy. Triarc Companies (NYSE:TRY) owner Nelson Peltz, announced that they are buying fast-food giant Wendy'''s (NYSE: WEN) in an all-stock deal worth $2.34 billion.[28] Nelson Peltz's new challenge is to turn around 1 of the fast-food industry's more notable names during a slumping economy. His Atlanta-based Triarc Companies said yesterday it will pay about $2.34 billion for Wendy's in an all-stock deal.[29]
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.[30]
Wendy'''s, the third largest U.S. burger chain, on Thursday said it had agreed to a takeover by billionaire investor Nelson Peltz'''s Triarc in an all-stock deal worth $2.34bn.[31]
Billionaire investor Nelson Peltz, owner of Arby's, bought Wendy's International in a $2.3 billion deal that will combine the two chains and, for now, keep the headquarters of Wendy's here, though jobs may be cut.[6] Billionaire Nelson Peltz's Triarc Cos. agreed to buy Wendy's International Inc. for about $2.4 billion to combine the third-biggest U.S. hamburger chain with his Arby's roast beef restaurants.[32] The nearly two-and-a-half-year fight between Wendy's International and Nelson Peltz appears to be over. Facing shareholder pressure and a possible proxy battle, the Wendy's board agreed to merge their company with Mr. Peltz's Triarc Companies, which runs the Arby's restaurant chain.[22]
Peltz's negotiations with Wendy's appeared stormy at times. Peltz wrote a letter to Wendy's chief executive James Pickett complaining that Wendy's would prefer to sell its business to anyone other than Triarc. Wendy's rejected proposals by Triarc including a $3.3bn offer for the company earlier this month. Peltz has a long track record of persuading companies to change their business strategy. Most recently Cadbury's seprated its beverage and confectionary businesses following pressure from Peltz, its third largest shareholder. Peltz also persuaded Kraft to expand its international operations last year, which led to its $7.2bn acquisition of Danone's cookie and biscuit business including the LU, Petit Dejeuner, Cracotte, Tuc and Prince brands, and extended its international reach.[17]
Here is the math behind that assertion: The exchange ratio is based on the 30-day weighted average of Triarc's shares, which is $7.08. That implies a value for Wendy's of $30.09, or an 18% premium to the Wednesday close and a 31% premium to Wendy's stock price 10 trading days ago, before Peltz made last week's offer. Wendy's had board meetings scheduled Tuesday and Wednesday, so when Peltz found out late last week that there was another interested party, he called the company and tried to intervene with a higher bid.[7] Wendy's shares rose 4 percent to $26.39 in trading yesterday. They traded as high as $42.22 last summer, not long after Wendy's announced the formation of a special committee to boost its stock price. The offer is well below the $37 to $41 per share that Peltz said last summer he was ready to offer. Through his hedge fund, Peltz is one of Wendy's biggest investors, and he has agitated for change.[33] Wendy's shares rose 4 percent to $26.39 in trading Thursday. They traded as high as $42.22 last summer. The offer is well below the $37 to $41 per share that Peltz said last summer that he was ready to offer for Wendy's. United Airlines, the second-largest U.S. carrier, raised nearly all its domestic airfares by 3 to 5 percent Thursday as it struggles to cope with soaring fuel costs.[34]
In 2006, the part-time Palm Beacher used a proxy fight to secure two seats on the board of H.J. Heinz Co. (NYSE: HNZ) for allies. Last year, through his companies, he muscled a 3 percent share in both Cadbury-Schweppes plc (NYSE: CSG) and Kraft Foods Inc. (NYSE: KFT). When he came courting Wendy's last summer, Peltz brought an offer of $37 to $41 per share.[35]
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 earnings announced Thursday. Wendy's said its profits totaled $4.1 million, or 5 cents a share, for the quarter ended March 30, compared with $14.7 million, or 15 cents a share, a year ago.[36] The deal brings together two fast-food chains that have been overshadowed by an increasingly competitive industry leader McDonald's. Together Arby's and Wendy's will focus on broadening their offerings during different parts of the day, particularly breakfast, as well as making more acquisitions and expanding globally. Wendy's said yesterday that its first-quarter profit was down 72 percent to $4.1 million, or 5 cents a share, in part because of expenses tied to the work of the special committee.[33] The deal would add the fast food outlet to Triarc'''s Arby'''s roast-beef sandwich chain. Triarc is offering 4.25 shares of its own Class A stock for every share of Wendy'''s stock, a premium of 5.7% to Wendy'''s shares, which closed at $25.32 on Wednesday.[31]
The new company will be the nation'''s third-largest quick-service restaurant company, with approximately 10,000 restaurant units and sales of approximately $12.5 billion, the statement said. The new company expects to focus on breakfast, global expansion for both brands, and growth through future acquisitions and new unit development. '''We believe the combination of Arby'''s and Wendy'''s will create a powerful new restaurant company and a '''must own''' restaurant stock with significant upside potential as we execute on the many opportunities we see to expand and improve these two very valuable brands,''' said Triarc CEO/Director Roland Smith.[37] Triarc, as franchisor of the Arby's restaurant system, would have about 10,000 restaurant units, and pro forma annual system sales of $12.5 billion, when Wendy's and Arby's are combined company. That would make it the nation's third largest fast-food chain. Triarc said it would change its corporate name after the merger to include the "Wendy's" brand.[16] The deal creates the third-largest quick-service restaurant chain in the U.S., with approximately $12.5 billion in annual sales and more than 10,000 restaurants. Triarc will change its name to incorporate the Wendy's brand.[2] Atlanta-based Triarc (NYSE: TRY) is acquiring Dublin-based Wendy's (NYSE: WEN) in an all-stock deal that will create the third-largest quick-service restaurant company in the U.S., with almost $12.5 billion in annual sales.[38] Triarc (nyse: TRY - news - people ), which is owned by Peltz, said Thursday it had agreed to buy Wendy's International (nyse: WEN - news - people )in an all-stock deal worth roughly $2.4 billion.[24] DUBLIN, Ohio - The owner of Arby's said Thursday it is buying Wendy's International Inc. in an all-stock deal worth $2.34 billion that comes after the burger chain's board rejected at least two earlier offers by the company.[10] DUBLIN, Ohio ' Popular hamburger joint Wendy's International said on Thursday it has been acquired by Arby's parent company Triarc Companies for $2.34 billion.[20] Wendy's International, which opened its first restaurant Downtown in 1969, said yesterday it is being acquired for $2.34 billion in stock by Triarc Cos., which also owns Arby's.[6]
Triarc Companies Inc. opnbrktTRYclsbrkt, owned by billionaire Nelson Peltz announced yesterday evening it would buy Wendy's International for $2.34 billion.[39] Triarc Companies Inc., which is owned by billionaire investor Nelson Peltz, will pay about $26.78 per share for the company, which has about 87 million shares outstanding.[10] In a CNN.Com report, Wendy's confirmed acceptance of Triarc's buyout bid, after two earlier rejections. Triarc owner Nelson Peltz said he will pay $26.78 per company share which stands at about 87 million.[40]
Peltz's hedge fund, Trian, is the largest Wendy's shareholder, with 9.8 percent, and has been agitating for change for some time. Under the deal, Triarc's shareholders will be asked to approve a charter amendment converting each share of Triarc Class B common, Series 1, into one share of its Class A Common Stock, resulting in a post-merger company with a single class of common stock.[16] 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. 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.[36]
The price is a premium of 6 per cent from the closing price of $25.32 for Wendy's stock on Wednesday. Wendy's stock is well off its high for the past year of $42.22, which it reached shortly after the committee began its work in the summer. It gained $1.07 cents to $26.39 yesterday. 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.[11] If you believe there's value in Wendy's, you can still own it via Triarc." Shareholders of Wendy's will receive 4.25 shares of Triarc Class A stock for each share of Wendy's stock they own.[24] The all-stock transaction between Wendy's and Triarc will give Wendy's shareholders 4.25 shares of Triarc stock for each share of Wendy's stock.[6]
Under the terms of the deal, Wendys shareholders will receive 4.25 shares of Triarc common stock for each share of Wendys stock, Triarc said in a statement.[18]
Just last week, the burger chain whined about a pair of buyout offers presented by Triarc as being too low to stomach. Apparently, a closer look at the mirror finds Wendy's realizing that gravity hasn't been kind to her since she put herself on the bidding block last summer. The chain is accepting the all-stock deal as of Thursday morning, giving investors 4.25 shares of Triarc for every share they own.[41] MUMBAI (Thomson Financial) - Moodys Investors Service said it has affirmed U.S.-based Arbys Restaurant Group Inc.s B1 corporate family rating after the announcement that Arbys parent company -- Triarc Companies Inc. -- and burger chain Wendys International Inc. have signed a definitive merger agreement for an all-stock transaction.[42] In a merger deal that could have been launched by close board-room connections, Triarc Companies Inc, the franchisor of the Arby's restaurant system, is buying out in an all-stock transaction Wendy'''s International Inc, the two companies announced on Thursday in a joint statement.[37]
BANGALORE (Thomson Financial) - Standard & Poor's Ratings Services said it has revised the credit watch implications on Arby's Restaurant Group Inc. to developing from negative after the company's parent Triarc Companies Inc said it has agreed to merge with Wendy's International Inc. The ratings agency said currently Wendy's is rated one notch higher than Arby's because of its stronger business and financial risk profile.[43] Boston (eCanadaNow) - Triarc Companies Inc., the company who franchises the Arby's restaurants, has merged with Wendy's International Inc.[8]
Wendy's International announced Thursday that it signed a $2.3 billion merger agreement with Triarc Cos., franchisers of the Arby's restaurant system. Both Wendy's and Arby's have historic ties to South Florida.[9] Wendy's International Inc. and Triarc Cos. Inc., franchiser of Arby's restaurants, have agreed to a $2.3 billion merger.[23]
CHICAGO (AdAge.com) -- After a year of posturing, insinuating and even brawling, Wendy's has signed a definitive merger agreement with Nelson Peltz' Triarc Cos. in an all-stock deal valued at $2.3 billion.[44] After at least two rejections, billionaire Nelson Peltz has finally succeeded in landing Wendy's in a $2.3 billion deal that would add the chain known for its square burger and chocolate Frosty dessert to his ownership of Arby's and its roast beef sandwiches.[34] After failing twice, Billionaire Nelson Peltz has successfully in bought out Wendy's. This 2.3 billion dollar deal would add the chain's popular square burger and chocolate Frosty to his ownership of Arby's and its roast beef sandwiches.[45]
The country's third-largest burger chain behind McDonald's (NYSE: MCD ) and Burger King (NYSE: BKC ) is hooking up with the parent company of Arby's in a deal that will create a fast-food empire ringing up $12.5 billion in system sales annually. It's clearly not the buyout that Wendy's had hoped for.[41] Revenue was down to $513 million from $522 million a year ago. The new company will include Wendy's in its name, but Smith said he was not ready to reveal what it will be. 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 image tarnished by a woman who falsely claimed she found part of a finger in a bowl of chili. Pushed by activist shareholders, Wendy's spun off its Tim Horton coffee-and-doughnut chain and sold its money-losing Baja Fresh Mexican Grill. Chairman and Chief Executive Jack Schuessler 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 claim it was served to the woman.[36] The new entity will continue to expand in the U.S. and internationally, and is also looking at acquisition opportunities, according to a company statement. It will also explore putting out duel-concept restaurants in high-cost real estate markets. During its first quarter, Wendy's reported a 0.1% same-restaurant sales dip in the U.S. The company posted income from continuing operations of $4.1 million, down from $14.5 million during the same year-ago period. Arby's same-unit sales rose 3% during its most recent quarter, while total sales came in at $320.6 million, down $11.4 million from the same period a year ago.[13]
Last year, Wendy's tried a series of ads that featured young men wearing a red wig of braided pigtails that archly recalled the chain's namesake image. They flopped. Mr. Smith also said he will look at expanding the company's snack and beverage offerings. He wouldn't say whether that will include the espresso drinks that McDonald's is adding. In terms of overseas growth, he sees potential in Latin America and Asia. Members of the Thomas family, which tried to block the sale, say they're devastated. "It's just awful," said Pam Farber, one of Mr. Thomas's daughters, who owns 33 Wendy's restaurants in Ohio with her four siblings.[4] Wendy's streamlined the company in response. It spun-off Tim Hortons, its coffee and donut business, in a $671m initial public offering in 2006. It also sold its Baja Fresh Mexican Grill restaurants to a group led by Californian investor David Kim in the same year for $31m considerably less than the $275m it paid for the food chain four years earlier.[17] When Mr. Thomas passed away, the chain tried new tactics including the unpopular "Mr. Wendy" campaign. Last year, the chain moved its $435 million advertising account to Publicis Groupe's Saatchi & Saatchi, which gave them the popular but polarizing "red wig" campaign. In January, the chain moved the bulk of its business again, to MDC Partners' Kirshenbaum Bond & Partners. The resulting campaign, "It's waaaay better than fast food," appears to be gaining some traction, although results are very preliminary.[44] The claim turned out to be a hoax, but the damage was done. Peltz, the world's 897th wealthiest person, made a good deal of his $1.3 billion with food and beverage companies. The University of Pennsylvania dropout got his start by building his family's frozen food business into a major distributor. One of his most lucrative achievements was buying Snapple for $300 million and reselling the drink maker for over $1 billion just a few years later. He unsuccessfully tried to buy Burger King (nyse: BKC - news - people ) in 2002 and owns stakes in Cheesecake Factory (nasdaq: CAKE - news - people ) and H.J. Heinz (nyse: HNZ - news - people ).[19]
Within minutes of news Thursday that Peltz's Triarc Cos. (NYSE: TRY) would gobble Wendy's International Inc. (NYSE: WEN) - Wendy's stockholders took to online message boards to weigh in on the burger chain's board of directors, who are willing to accept a 6 percent premium on the stock's value.[35] Wendy's stock closed at $25.32 Wednesday, putting the premium Triarc will pay at just under 6 percent. "We believe this transaction with Triarc is in the best interests of all of Wendy's constituencies and represents superior value to what the board anticipates Wendy's would have generated as an independent company," he said.[2]
Update: Wendy's stock price fell to $24.41 in morning trading as investors punished the company for the seemingly low premium of the deal.[7] Competition. Last week, after Peltz lobbed an apparently lowball offer of $900 million and unspecified amount of stock, he got wind that Wendy's was close to closing a deal with a rival private-equity firm, according to one person familiar with the company.[7] Last week, Triarc announced that Wendy's had rejected two acquisition offers. His Triarc Cos. and Trian Fund Management had proposed combining Wendy's and Arby's, as well as purchasing Wendy's outright for $900 million in cash and stock.[44]
The board relented at an offer of 4.25 Triarc shares for each share of Wendy's, a $26.78-a-share price that included a 5.7-percent premium, Bloomberg News calculated.[16] At $6.66 and based on a 4.25 share conversion offer, that would value Wendy's at $28.305 as an end-game pricing. Wall Street is voting positively for Triarc so far, particularly as its shares had been under-performing by so much.[46]
Triarc shares closed at $6.30 Wednesday, giving the deal an initial value of $26.78 a share, above the closing price Wednesday for Wendy's of $25.32.[4] The deal is worth 2.3 billion dollars, and Wendy's stockholders are to receive 4.25 shares of Triac for each Wendy's share, the companies said. The sales price is based on a value of 26.78 dollars per share, a 6 per cent increase over its closing value a day earlier.[47] Wendy's demurred. One year later, he's getting the company, which still has positive cash flow, for $26.78 per share in an all-stock, no-cash deal.[35]
Triarc was one of the most vocal bidders, saying in July it would pay as much as $41 a share for the chain, which would have been $3.6 billion. When capital started to dry up, most of those potential bidders changed their mind, and by Christmas, investors had begun doubting there would be any type of sale. Directors weighed whether to sell just a stake in the company in a deal led by private-equity firm Kelso & Co., this person said.[4] Peltz, 65, pressured Wendy's for more than two years to sell itself, and he became the chain's largest shareholder as it lagged McDonald's Corp. and Burger King Holdings Inc. Wendy's has been seeking a buyer since April 2007. Peltz said in July he might be willing to pay $37 to $41 a share for Wendy's.[32] Wendy's stock rose to $37.99 the day after it announced it could be up for sale and hit a 52-week high of $42.22 on May 7, but the price has been on the decline since June and hasn't been above $30 since November 15, closing April 23 at 25.32. James Pickett, Wendy's chairman and a member of the special committee charged with exploring a sale, said the committee wanted to see that shareholders received a premium for their shares.[2] The bad news is that Wendy's board of directors folded like the proverbial cheap suit, particularly for shareholders who have been buried since $30 to $40. The other good news is that if you believe in Nelson Peltz & Friends, you are getting this as an all stock exchange and therefore you are getting to participate in the upside if they get this ship turned around.[46] Nelson Peltz'''s firm Triarc Cos has agreed to buy Wendy's International for $2.3bn ('''1.5bn), trumping a competing offer from private equity firm Kelso & Co, favoured by many Wendy's franchisees and employees.[48] Since last summer, Wendy's has rejected several buyout offers from Triarc's chairman, billionaire investor Nelson Peltz.[49]
The merger comes after years of pressure by billionaire investor Nelson Peltz, who owns Arby's parent firm, Triac Cos, and who became the largest Wendy's stockholder in order to pressure a sale.[47] The deal has been almost a year in the making since Wendy's hired Lehman Brothers and JP Morgan in May last year to explore strategic options, including a sale. Activist investors including Highland Capital as well as Peltz through his investment management business Trian Fund Management, had urged the fast food giant to change its business model.[17] "The issue is whether Wendy's management couldn't do that themselves," Miller said. Peltz has displayed a deft touch with underperforming businesses in the food industry, helping to boost returns at H.J. Heinz and pushing Cadbury Schweppes to spin off its U.S. beverage business. That said, these are tough times in the U.S. fast-food business, and investors haven't seemed impressed with Peltz's management of Arby's--Triarc shares are off 65% over the past year.[24]
Nice work if you can get it. For the record, Peltz's investments are generally made through one of his two companies, Triac or Trian Partners, where he is the primary stockholder. Wendy's investors might find this even more unappetizing: Triarc shares have fallen 65 percent in the last 12 months. That's not the picture of health one might want in an acquiring company. Especially an acquiring company that is about to swap its shares for yours.[35] Nelson Peltz, the man behind Triarc, controls nearly 10 percent of Wendy's shares. When Pershing was previously involved with Wendy's, its leader suggested major changes, including the spinoff of Tim Hortons.[50] Peltz, who controls about 10 percent of Wendy's shares, already had forced change. After he became involved with the company, Wendy's spun off Tim Hortons and sold the Baja Fresh Mexican Grill chain.[6]
Roland Smith, 53, Triarc's chief executive, will continue in that role for the combined company and also will become CEO of the Wendy's brand. Triarc will change its corporate name post-merger to include the name "Wendy's" and to reflect its new identity as the owner of the chain that sells signature square hamburgers under the logo of a red-headed girl with pigtails.[12] Paul Weiss Rifkind Wharton & Garrison and Jones Day acted as Triarc's legal counsel. Roland Smith, Triarc chief executive, will become the chief executive of Wendy's, as part of the deal, which is is expected to be completed in the second half of this year. Triarc plans to expand the burger chain internationally along with its own Arby's fast-food business.[17] The burger chain, which has been on the auction block a while, has not adapted as well as competitors to the country's changing diet. "Life has changed for them because a lot of people are not eating burgers as much as they used to," he said. "When you think of Wendy's, you think burgers, and that is not the image you want when everyone else is showing they have alternatives. Arby's has been able to improve its image, and maybe they hope to help Wendy's." Roland Smith, Triarc's chief executive, said some Wendy's jobs likely will move, but he did not know how many. He also said some jobs would be lost in efforts to eliminate duplication, but that it was too early to give a number. "It is likely that some of the folks at Wendy's will move to Atlanta," said Smith, will also become Wendy's CEO. "It's going to take a fair amount of time to go down and meet the people in Dublin." He said the Atlanta office of Triarc has about 400 employees.[36]
Triarc also owns Arby's. "We believe the combination of Arby's and Wendy's will create a powerful new restaurant company and a 'must own' restaurant stock with significant upside potential as we execute on the many opportunities we see to expand and improve these two very valuable brands," Mr. Smith said in a statement.[44] The small premium became even smaller when Triarc's stock opened lower on the news. If you're wondering what Wendy's saw in its own reflection, maybe the company's horrible first-quarter numbers can shed some light on its resignation.[41]
The deal valued Wendy's at $26.78, based on Triarc's closing stock price on Wednesday.[37] At first glance, the deal price looks skimpy: Based on Wednesday's closing prices, it valued Wendy's at $26.78 a share just a 5.7 percent premium.[22] The deal is worth $2.34 billion based on the 87.41 million outstanding shares Wendy had as of Feb. 14, 2008, according to Reuters data.[3] Triarc Companies Inc., owned by Peltz, said Thursday it will pay about $2.34 billion in an all-stock deal for the chain.[26] Shares of Wendy's are now up 4% at $27.50 and Triarc Companies Inc. (NYSE: TRY ) are at $6.66, a nearly 3% gain from yesterday's close.[46]
Wendy's shares rose 1.7%, or 44 cents, to $25.76, in afternoon trading. The stock is well off its high for the past year of $42.22, which it reached shortly after it began shopping for a bidder.[24] Longtime Fool contributor Rick Munarriz actually enjoyed the chunky chicken salad sandwich that had a limited run on the Wendy's menu last year. He does not own shares in any of the companies mentioned in this story. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.[41]
New York - The third largest U.S. fast food chain, Wendy's, is to be taken over by the parent firm of smaller rival Arby's in a multibillion-dollar stock deal, the companies said Thursday.[47] 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 (U.S.).[11] Fans of XP have plastered the Internet with blog posts, cartoons and petitions recently. They trumpet its superiority to Vista, whose consumer launch in January was greeted with lukewarm reviews. 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.[30]
Dublin, OH (AHN) - Wendy's, America's third largest hamburger chain, has agreed to a total buy out from the operator of Arby's shaved roast beef sandwiches for $2.34 billion.[40] The company, owned by billionaire Nelsen Peltz, is buying the chain for about $2.34 billion in stock. It will create the third-largest fast-food chain in the country.[36]
MILLER: The new company will still be the nation's third largest food chain, with over 10,000 restaurants and more than $12 billion in annual sales. The companies say the merger will help both chains lower costs, but analysts aren't convinced. BASHAM: The intention I believe, is for both companies to operate completely independently of each other at least for the time being.[49] The combined companies, which will operate as separate brands, will create the third largest fast food company in the U.S., with about 10,000 restaurants and sales of about $12.5 billion per year.[18]
The deal would create the third-largest fast-food restaurant chain in the U.S., with about $12.5 billion in annual sales and more than 10,000 units.[9]
Under that plan, longtime Wendy's franchisee David Karam would have succeeded Ms. Anderson as CEO. For Wendy's restaurant owners and employees who felt bruised by Mr. Peltz's criticism, that option was more palatable than a sale to Triarc. In February, though, Mr. Peltz said he wanted to take control of Wendy's board, putting fresh pressure on directors to lock up a deal.[4] Company namesake Wendy Thomas, daughter of founder Dave Thomas, called the outcome a "huge, huge disappointment." Thomas, her three sisters and her mother had been pulling for J. David Karam, a franchisee from Upper Arlington who had joined with two private-equity firms to bid for the company. The deal with Triarc was sealed at the eleventh hour, said Karam, who thought he had an agreement sewed up. He and his partners had received an endorsement from the Wendy's special committee handling the process and were "hours away" from a vote by the board of directors, he said. Peltz then began "lobbing in bids one after another" until he found one that the board liked, Karam said. "It's a sad day for Columbus," Karam said.[6] In a joint press release, Triarc and Wendy's said that the deal should be completed during the second half of 2008, pending shareholder approval. With Peltz and his partner Peter May owning over 35% of Triarc and their investment company Trian holding 10% of Wendy's, approval appears to be little more than a formality. Now it's Triarc's turn to see if they can turn Wendy's around.[15] Under terms of the deal, Wendy's shareholders would control 80 percent of the combined company, with Triarc shareholders owning the remaining 20 percent.[37]
Based on Triarc's closing share price Wednesday of 6.30 dollars, Wendy's shareholders will receive a modest six percent premium.[12]
Wendy's shares were up 1.94 percent at 25.811 dollars and Triarc gained 0.79 percent at 6.35 in New York trade around 1830 GMT.[12] The deal news pushed Wendy's shares up 4.2% to 26.39, while Triac shares rose 2.7% to 6.47 on Apr. 24.[15]
The overall deal value of $2.3 billion is much less than last summer's offer from Mr. Peltz, which valued Wendy's at around $3.6 billion to $3.8 billion.[22] The deal comes less than a week after Peltz'''s Trian Partners said it would seek a special meeting of Wendy'''s shareholders, after management rebuffed two previous separate takeover offers.[31] Make no mistake: Even after Thursday's deal with Mr. Peltz, the future of Wendy's is far from certain. Arby's has not exactly become a major fast-food powerhouse since he took control of it in 1993. Any change may be welcome at this point. One major shareholder, expressing his disdain for Wendy's current management, said Thursday "it is impossible to conceive of a scenario that could be worse."[22]
If shareholders approve the Wendy's sale, one of Peltz's first moves will be to integrate Wendy's with Triarc's other chain.[19] As recently as last week, Peltz and Wendy's were engaged in public bickering about the sale process. Triarc said Wendy's had rejected two of its offers, and Wendy's fired back with its own statement about dissatisfaction with the process.[6] "We know we must do better and we are focused on driving sales and performance in future quarters.'' In February, Peltz threatened Wendy's with a proxy fight, saying he planned to nominate six candidates to Wendy's board. Last week he said Wendy's rejected an acquisition proposal and a separate offer to merge Wendy's with Arby's.[5]
The board of the nation's third largest burger chain rejected at least two earlier offers from Triarc. Farber says her family was pulling for an alternate group of bidders led by a Wendy's franchisee. Triarc said it will change its name to incorporate Wendy's.[21] The all-stock transaction is valued at $2.3 billion. Triarc also will change its name to include the Wendy's name.[51] Triarc would change its corporate name to include "Wendy's," but Arby's and Wendy's would operate as autonomous brand business units headquartered in Atlanta and Dublin, Ohio, respectively, both companies said.[3] Wendy's CEO Kerrii Anderson will leave the business after a transition period. Smith said the Wendy's executive team is a capable group that he looks forward to working with, but he would not discuss any potential executive changes. He will relocate to Central Ohio, where he will run both Arby's and Wendy's. Triarc plans to open a centralized support center in Atlanta to handle public company responsibilities and other central service functions, which likely means changes are coming for departments such as legal, accounting, information technology and other non-brand-related areas that overlap with Arby's functions.[38] Arby's and Wendy's will operate as autonomous brand business units. Bloomberg said that Wendy's CEO Kerrii Anderson, its former CFO, had failed to keep up with new-product introductions by competitors, leading to the pressure for a merger. According to a report in Portfolio.com, Triarc CEO Roland Smith will replace her at Wendy's while also remaining CEO of the combined company.[16]
The combined company will have about 10,000 restaurants. The Wendy's and Arby's brands will operate autonomously out of their respective headquarters in Dublin, Ohio, and Atlanta, and Mr. Smith said he intends to spend most of his time working in Dublin. He praised Wendy's employees as "high quality" and said he has started meeting with some of the chain's franchisees.[4] Wendy's has 6,622 restaurants, while Arby's has about 3,700 outlets. Smith said Triarc looks forward to building on Wendy's "proud heritage" and quality brand, but he sees several areas identified for improvement.[38] RTM makes up 70 percent of the 1,106 Arby's locations operated by Triarc. By acquiring its largest franchisee and adopting many of its practices, Smith said they have more of a franchisee mentality toward store operations. "We'd love to believe we can bring that owner-operator mentality to the Wendy's brand," he said.[38]
Layoffs will be part of the restructuring, said Roland Smith, who is Triarc's chief executive and will become the new Wendy's chief executive. He would not speculate about where they might take place or how many there might be. "I am entering this with an open mind," said Smith, who plans to move to Dublin. The majority of those employed at both companies work in "brand execution," such as marketing and product development, and will remain with each brand, he said.[6] Triarc Chief Executive Roland Smith, 53, will be CEO of the combined company as well as of the Wendy's brand.[32] The company will look at consumers' reaction to the products, how the products fit with the Wendy's brand, and whether the products are as profitable as possible, Smith said. Triarc has its work cut out for it, if Wendy's first-quarter earnings are any indication.[6]
Wendy's declined to comment on the announcement beyond the news release it issued. "We believe this transaction with Triarc is in the best interest of all of Wendy's constituencies and represents superior value to what the board anticipates Wendy's would have generated as an independent company," James V. Pickett, Wendy's chairman, said in the statement.[6] Over the last 12 months, Wendy's has existed in a state of suspended animation as the Special Committee of Wendy's Board, formed to look into how to best right the struggling company, sought out alternatives. It decided to sell the company to Triarc. "We believe this transaction with Triarc is in the best interests of all of Wendy's constituencies and represents superior value to what the Board anticipates Wendy's would have generated as an independent company," Wendy's Chairman James Pickett said in a press release.[15]
Its no surprise that the Wendy's board was asleep again at the helm. They allowed the former CEO to rob the bank with his compensation and stock awards, can say hit the lotto Jack Schussler. All this took place as shareholder value plummeted.[7] What's more, Wendy's directors may have had few options. A major shareholder in Wendy's told DealBook on Thursday that by February of this year, Mr. Peltz had rounded up enough support to win control of Wendy's board in a proxy fight.[22] Peltz's Trian Fund Management is Wendy's largest shareholder with a 9.8 percent stake. In the past two years he pursued and won board seats at ketchup maker HJ Heinz Co. and Kraft Foods Inc. and helped force Cadbury Schweppes Plc to spinoff its soda unit. In December, he acquired more than 10 percent of Cheesecake Factory Inc.[5]
Mr. Peltz has made a business out of streamlining bloated, underperforming food companies, UBS analyst David Palmer noted in a report. The investor acquired his Wendy's stake in 2005, and quickly pressed the chain to sell off ancillary businesses Tim Hortons and Baja Fresh, at a steep loss.[44] Nelson Peltz, the billionaire activist investor with a taste for low-brow food companies, has finally closed in on Wendy's after years of agitation.[24] Arby's is owned by Triarc Companies, which is owned by billionaire investor Nelson Peltz.[52]
Today's action -- the stock is up over $27.50, a 4% gain -- is looking like a story of " Good News, Bad News, Good News" for investors. This was a huge score for Mr. Peltz and Triarc.[46] For a relatively young chain with a number of original Wendy's franchisees and investors still intimately connected with the business, an all-new Peltz way of doing things could prove hard to swallow. "It's good news that we're finally getting past what we were going through with the uncertainty," said one franchisee. "I'm not comfortable that this is where we wanted to end up, and I think a lot of it is we're essentially dealing with a lot of people who are unknown to us."[44]
Wendy's management took steps to please shareholders. They accelerated its share buyback program, paid down debt, spun off its Tim Horton's chain and launched new marketing efforts for its Super Value Menu.[22]
Triarc (NYSE:TRY), the parent company of the Arby'''s Restaurant chain, will pay roughly $26.78 a share for the company, a 6% premium.[28] At the current trading price of Triarc, which also owns Arby's, the offer is worth about $27.50 a share, an arguably thin premium to the company's closing price of $25.32 Wednesday.[24]
The company reported first quarter earnings from continuing operations of $8.4 million, or 10 cents per share, well below the First Call consensus estimate of 17 cents and year-ago results of $15.1 million and 16 cents, respectively. It was hurt by higher breakfast costs, lower-than-expected sales and rising commodity prices.[15] Triarc will pay about $26.78 per share for the company, which has about 87 million shares outstanding.[33]
Despite gaining majority control and finally quieting an activist shareholder, Wendy's''failed to fetch the $37''per share to $41 per share Peltz was prepared to offer in July.[37] Last summer, Mr. Peltz's companies indicated willingness to pay $37 to $41 per share, but lowered the price last fall.[44]
Wendys shares rose 42 cents, or 1.66 percent to $25.74. This article is copyrighted by International Business Times. [18] Wendy's said Thursday that first-quarter profits fell 72 percent, to $4.14 million, or 5 cents a share, missing analysts' estimates.[32]
Today, Wendy's said profits fell to $0.10 a share from $0.16 a year ago and $0.07 shy of estimates. Branding expert Andrea Sullivan says Wendy's has had trouble finding its niche. ANDREA SULLIVAN, EXECUTIVE DIRECTOR, CLIENT SERVICES, INTERBRANDS: It's interesting, if you look at the Wendy's brand, I think it's appealed to more of a nostalgic feeling.[49] Wendy's announced yesterday that profit was down 72 percent to $4.1 million for the first quarter and that revenue fell to $513 million from $522 million a year ago.[25] CNN added that Wendy's profits totaled $4.1 million in the fourth quarter of fiscal year 2007.[40]
Triarc says Arbys managers will improve operations at Wendys, eventually generating $100 million in profit annually.[18] Triarc says it expects to make changes to eventually save $160 million a year. Triarc also operates 3,700 Arby's restaurants and says expansions for both brands are planned for the U.S. and overseas.[29]
Atlanta-based Triarc Cos. Inc., which moved from New York more than a year ago when it bought roast beef king Arby's, is adding burger giant Wendy's to its portfolio.[36] PAUL KANGAS: In other corporate news today, hamburger giant Wendy's International is being swallowed by Arby's parent Triarc.[49] Wendy's International (NYSE: WEN) had more than 6,600 Wendy's restaurants in the United States, Canada and other markets. Triarc (NYSE: TRY) franchises about 3,700 Arby's restaurants, 1,106 of which were owned and operated by its subsidiaries as of Dec. 30.[23]
The sale of Wendy's International Inc. to the Atlanta-based parent of the Arby's fast-food chain will mean changes in the short term, but the CEO-to-be is predicting the Arby's team will bring long-term improvements to the business.[38] Many people with a stake in Wendy's International weren't happy yesterday after the Dublin burger chain said it has agreed to be acquired by the parent of Arby's.[6] An investment firm that bought and then sold a stake in Wendy's International has re-emerged as an investor in the burger chain.[50]
"Ultimately there's a lot to be realized in synergies and improvement of Wendy's, which certainly has been underearning for a number of years," said Michael Gallo, an analyst at CL King & Associates. The firm plans to grow by extending its breakfast menu to additional locations and with international expansion, new store openings and acquisitions. The firm went public in 1976, raising $28 million, and by 1997 had opened its 5,000th store. Kerrii Anderson, Wendy's CEO since 2006, failed to keep up with new products from McDonald's, such as snack wraps and premium coffee, and Burger King's discount breakfast menu.[32] Now, Pershing could attempt to extract that value by trying to drive up the bid for Wendy's, Paul said. He called the $2.3 billion price tag for the Wendy's merger '''pessimistic''' given the strength of the burger category and the Wendy's brand.[50] After having fended off buyout bids, Wendy's has agreed to be purchased by the owner of Arby's for more than $2 billion. Wendy's was made famous for its made-to-order square hamburgers and chocolate Frosty dessert.[53]
ERIKA MILLER, NIGHTLY BUSINESS REPORT CORRESPONDENT: The deal between Wendy's and Arby's parent Triarc ends a long and very public food fight.[49] The companies will continue to operate separately, with Arby's in Atlanta and Wendy's in Dublin, but Triarc said it will create a consolidated support center in Atlanta to "oversee all public company responsibilities and other central service functions."[2] Farber said Dave Thomas's family didn't think much of Peltz's 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.[11] The family had supported an alternate bid led by Wendy's franchisee David Karam, president of Cedar Enterprises Inc. "It's a very sad day for Wendy's, and our family. We just didn't think this would be the outcome," Farber said. Dave Thomas founded Wendy's in 1969 and became the face of the company when he began pitching his burgers and fries in television commercials in 1989. He died in 2002.[36] News of the sale was met with sadness by the family of Dave Thomas, who founded Wendy's in 1969. "It's a very sad day for Wendy's, and our family. We just didn't think this would be the outcome," Pam Thomas Farber told the Associated Press. She said that if her father were alive, "he would not be amused" by the buyout.[24] Dave Thomas started the Wendy's chain in 1969. hios daughter, Pam Thomas Farber, said the family was "devastated" by the news. She said if her father were alive, "He would not be amused."[27]
The family of Wendy's founder Dave Thomas has expressed disappointment with the Triarc merger.[50] Since the 2002 passing of founder Dave Thomas, Wendy's has struggled to keep up with competitors in sales and menu innovation. "They really have gone from being an innovator and leader, being able to use Dave Thomas as a marketer, to being a follower," said Darren Tristano, exec VP of Technomic. "Now they're adding breakfast, adding coffee, and a wrap. They've been trying to keep up versus leading the way, and if this is the kind of kick in the pants to become the innovator that we've known them for in the past, then I'd like to see that happen."[44] Following the death of founder Thomas in January 2002, revenue at Wendy's has waned, with sales at older stores dropping six quarters in a row before Jack Schuessler resigned as chief executive officer in April 2006. JPMorgan Chase & Co. and Greenhill & Co. advised Wendy's, on the takeover by Triarc, while Akin Gump Strauss Hauer & Feld LLP and Winston and Strawn were its legal advisers.[5]
Without Thomas, Wendy's ad campaigns have been lackluster at best, especially compared to McDonald's and Burger King's ( BKC ) contemporaneous ads. Another campaign fizzled in January when Wendy's replaced "That's Right," which had failed to boost sales, with "Waaaay Better Than Fast Food." "The company almost had to decide what they wanted to be from scratch," said UBS analyst David Palmer. "They seem to be switching from campaign to campaign."[15] Shareholders might also note that Wendy's was staring down the barrel of some grim financial results. Thursday's merger announcement largely overshadowed a generally dismal quarterly earnings update from Wendy's, in which the company's chief executive, Kerrii Anderson, sounded as if she were apologizing to shareholders. In a statement accompanying the results, she said: "We know we must do better and we are focused on driving sales and performance in future quarters."[22] Peltz later joined the push. '''That could be a spoiler,''' said Ron Paul, president of Technomic, a Chicago restaurant- and food-research firm. He said he thinks the merger, which requires the approval of Wendy's and Triarc shareholders, still is likely to be completed. He said, it might not be a '''slam-dunk.'''[50] Trian Fund Management, owned by Peltz, is the largest Wendy's shareholder with a 9.8% stake in the business.[17] The rival firm, Kelso Co., was working with a Wendy's franchisee. Though Kelso had been in the picture for a while, talks between Kelso and Wendy's intensified after Peltz announced he would try to call a special meeting of Wendy's shareholders, this person said.[7] What a difference a week makes. Wendy's had started earnest talks with''a private equity firm after Peltz said he would call a special meeting of Wendy's shareholders, sources said.[37]
Peltz is a major shareholder of Wendy's and has been turning up the heat on the chain.[49]
Nelson Peltz's yearlong fight for Wendy's has finally resulted in a deal, and according to the company's calculations, Peltz paid highly.[7] Peltz and Wendy's worked through the Passover holidaywhich was "not cool with some people," according to the person familiar with the deal. Getting this deal done after a year of agita may not have led to a sweet Passover, as the greeting goes, but some expect it will lead to a more savory future for the company.[7]
The person familiar with the company says today's deal is actually a premium of around 18% to Wednesday's closing price and that deal generously values Wendy's at 9.8 times expected 2008 earnings before interest, taxes, depreciation and amortization, or Ebitda.[7]
COLUMBUS, Ohio (AP) - The billionaire investor whose company is purchasing Ohio-based Wendy's is known for pushing corporations to make changes to boost their stock price.[29]
Wendy's gained $1.07 to $26.39 at 4:01 p.m. in New York Stock Exchange composite trading.[5] Triarc, based in Atlanta, is less than one-third the size of Wendy's on the New York Stock Exchange.[5]
Wendy's (NYSE:WEN) shares closed at $26.39 Thursday, up from Wednesday's close of $25.32, while Triarc (NYSE:TRY) shares closed at $6.47, up from $6.30 the day before. [2] If Pershing bought the 13.1 million shares in March ''' when Wendy's shares were usually below $24 ''' the fund probably believes that Wendy's is worth more, Paul said.[50] The offer represented a mere 6% premium to Wendy's shares, and a sharp discount to last year's highs.[41] Wendy's also posted earnings of 10 cents per share, down from 16 cents a year ago.[14] Apple ( AAPL ) shares rose 3.71% after the maker of iPods and Mac computers posted earnings of $1.16 per share, vs. 87 cents a year ago, as revenue rose 43%.[14] Ford Motor ( F ) unexpectedly posted a narrow profit Thursday, reporting earnings of 5 cents per share, vs. a 15-cent loss a year ago.[14]
Triarc shares rose 5 cents, or 0.79 percent to $6.35 in afternoon trading. [18] Triarc Class A stock rose 17 cents to $6.47. "The goal is to improve the company store margins from where they are today to the level generally that their franchises are delivering on a regular basis,'' Smith said in a telephone interview.[5] The merger would make Triarc a $12.5 billion company with 10,000 restaurants, the third largest in the quick-service category behind McDonald's and Yum Brands.[44] The combined company would have about 10,000 restaurant units and annual sales of 12.5 billion dollars, positioning it behind sector leaders McDonald's and Burger King. The new company expects to particularly focus on breakfast and global expansion for both brands, and growth through future acquisitions and new unit development, the statement said.[12] Wendy's and Arby's will continue to function as two separate business units, with headquarters in Dublin, Ohio, and Atlanta, respectively. According to a joint statement, the new company will pursue daypart expansion focused on breakfast, global expansion for both brands, growth through future acquisitions and new unit development.[44]
The agency retained Wendy's ratings, including the 'BB-' corporate credit rating, on creditwatch with negative implications. It added that the merger may lead to a one-notch downgrade of Wendy's debt, as Arby's has a weaker business profile and higher financial risk than Wendy's, and the new entity would be subject to significant integration risk.[54] The outlook also reflects business risks associated with the implementation of the managements plan to improve operating performance at Wendys and the risk that it could cause disruption and management distraction at Arbys, as well as uncertainty about the combined entitys future capital structure, liquidity, and financial policy should the merger close, Moodys said.[42]
After the merger, the two companies will consolidate some functions to save money. Mr. Smith said it's possible they will co-brand stores -- putting a Wendy's and an Arby's in one location -- as part of the chain's overseas expansions.[4] Margins on earnings before interest, taxes, depreciation and amortization need improvement, Smith said, noting that Wendy's franchisees are outperforming company stores in that measure. He said an Arby's strength is the restaurants' efficient operations. "We need to be able to operate restaurants from both a customer service and a bottom line profit perspective," he said.[38]
Profit margins, which have been falling, also need to be brought up to the levels of other fast food restaurants. "Wendy's may have lost its way a little bit since Dave Thomas died," said Morningstar analyst John Owens.[15] Wendy's founder Dave Thomas in front of the original East Broad Street restaurant in 1989.[6] Wendy's, whose founder Dave Thomas died in 2002, agreed to be acquired a year ago.[12] Wendy's founder Dave Thomas, well known in the company's ads, was a longtime Fort Lauderdale resident. He died at his home there in 2002.[9] Pam Thomas Farber, daughter of Wendy's founder Dave Thomas, called the news devastating.[36] Wendy's founder Dave Thomas celebrates the chain's 25th anniversary in 1994.[6] Wendy's, the nation's third-largest hamburger chain, was started in 1969 by Dave Thomas.[45]
The brand itself has been really anchored to Dave Thomas. Since his passing, I think it has been an opportunity to look at how should Wendy's really revitalize its image overall.[49] After the death of founder Dave Thomas in 2002, Wendy's tried repeatedly to find an ad campaign that could replace Thomas' popular TV work.[6] After Wendy's founder Dave Thomas died in 2002, Wendy's has suffered from an identity crisis.[15]
Thomas's 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. [11] Wendy's was unsuccessful when it came to connecting with consumers in several ad campaigns since Thomas' death in 2002. They had only limited success by adding new products to its breakfast menu.[45]
Wendy's has been seeking a buyer for 12 months, but the news that Peltz had won the company came as a surprise to Larry Miller of RBC Capital Markets because of the impasse the billionaire had seemed to have reached with the burger-slinger's directors.[24] Wendy's isn't the most financially appetizing company right now, but don't question Nelson Peltz's taste.[19]
The No. 3 hamburger chain began exploring strategic options last April and formally began searching for a buyer in June instead of pursuing other restructuring options. The talks with Peltz, who owned 9.8 percent of Wendy's, seemed dead last week after the fast-food chain rejected two of his proposals as too low.[37] Yesterday's disclosure of Pershing Square Capital Management's purchase of a 15 percent stake raised eyebrows because of the timing of the news: A day earlier, Wendy's agreed to be sold to Triarc Cos., parent of Arby's.[50] Although Wendy's headquarters will remain in Dublin, where as many as 600 people work, and Arby's will stay in Atlanta, Triarc will open a center in Atlanta for handling services duplicated between the companies.[6] Triarc's Arby's currently operates about 3,700 units, while Wendy's has 6,600 locations.[13]
Triarc's concerns were real. Another person familiar with the bidding said Kelso and Mr. Karam believed they had clinched a deal as the week began, but by Wednesday, Wendy's directors had chosen Triarc's offer instead.[4] Concerned that Wendy's directors would agree to a deal with Kelso, Triarc cobbled together what later proved to be the winning offer over the weekend, according to another person familiar with the situation.[4]
Wendy's, based in Dublin, Ohio, had rejected at least two buyout offers from Triarc.[33]
Wendy's local headquarters here will remain, as will the Triarc's current main office in Atlanta. Roland Smith, Triarc's CEO, will retain his title and take on the same role for the Wendy's chain.[13] Wendy's employs 550 regionally. Triarc CEO Roland Smith, 53, will retain that role and add Wendy's CEO to his titles.[2]
Restoring the luster to Wendy's brand should be first and foremost for Peltz and Triarc, UBS' Palmer said[15] Peltz, who runs the Trian Fund, gained three seats on the Wendy's board two years ago.[11] The Wendy's board has been studying strategic alternatives since early last year.[10]
Wendy's board put itself up for sale in April 2007 and by July, bankers had received a couple of dozen indications of interest from potential bidders, according to a person familiar with the situation.[4] Wendy's can use the help. The chain has been struggling with both sales and brand image of late.[55] The merger would create the third-largest fast-food restaurant chain in the United States, with about $12.5 billion in annual sales and more than 10,000 units, the companies said in a release Thursday.[23]
As Erika Miller report, the $2.4 billion all stock takeover completes Wendy's year-long search for a buyer.[49] Wendy's stock benefited from the Pershing filing, closing up 7.3percent yesterday, or $1.92, at $28.31.[50]
Pershing, led by William Ackman, became involved with Wendy's in 2005, when it acquired stock and options. Its stake eventually reached more than 10 percent, but by late 2006 it had sold most of its shares.[50] The stock of Wendy's International Inc. (NYSE: WEN ) was looking pretty poor yesterday morning.[46] Dublin, Ohio-based Wendy's International Inc. has agreed to be bought by the parent of the Arby's fast-food chain.[2] The market may not have much of a choice beyond warming up to the marriage of Wendy's with Arby's. The way things seemed to be going for the burger chain, it's a better future than living alone.[41] The No. 3 burger chain, which has been on the block for months, finally found a home at Triarc -- which also owns Arby's.[55]
Triarc said synergies from combining certain parts of the two chains will save up to $60 million a year.[19] One of Peltz's most lucrative achievements was buying Snapple for $300.0 million and reselling the drink maker for more than $1.0 billion just a few years later.[24] Sales were down slightly to $513.0 million from $522.0 million a year ago.[24] Revenue fell 1.4 percent, to $582.2 million, the fourth consecutive quarter of lower or little-changed sales.[32]
Wendy's may save $60 million by cutting duplicate corporate functions.[32] Let us hope that Trian doesn't screw too much with the Wendy's menue. Their chili is better than most chili restaurants and their $pricing brings in customers who order more than a single item.[7] In a tough environment for restaurants, the long battle by Peltz's Triarc ends with $2.34B all-stock agreement.[16] Triarc Companies Inc., is a holding company owned by Peltz, hopes to save 60 million dollars by doing away with duplicate corporate functions and streamlining support services.[45] Triarc is owned by super-investor Nelson Peltz who has helped revive companies like Heinz and Snapple.[55]
Wendy's has been seeking "strategic alternatives" for a year, and Triarc is the only one that has been vocal about winning Wendy's hand. [41] Atlanta-based Triarc is less than one-third the size of Wendy's on the NYSE.[32] Triarc's board of directors will be reconstituted with 12 members, including two directors nominated by Wendy's.[3] Needless to say we spent hundreds of millions of shareholder dollars with no resolution. How can the wendys board show their face in public? They slipped out in the middle of the night with their 55 million dollars compensation award.[7] Wendy's earnings have fallen; the shareholders unconcerned with the family's wishes.[52]
The family supported an alternate bid by Wendy's franchisee David Karam, president of Cedar Enterprises. "We knew what Dave Karam's commitment was to Wendy's, his family's commitment -- just as ours," Farber said. "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."[52]
Last year, sources told Reuters that two banks declined to fund Peltz's bid for Wendy's as the credit-crunch made deal-financing difficult to secure.[37] Wendy's could use even more guidance. Its shares are down by 21.4% over the past year.[19] Wendy's has been struggling for several years. It has failed to keep up with trends in the industry, such as boosting growth by focusing on breakfast and value menus. Last summer, while McDonald's ( MCD ) focused on making its franchises a convenient stop on the morning commute with its new and improved coffee, Wendy's served breakfast at only 500 of its 6,000-plus franchises.[15] After several years of meandering, McDonald's has been on fire in recent years, launching successful products (some of which copied Wendy's) and reasserting itself in the market. Even No. 2 Burger King, a former weak fast-food player, has gained momentum with its giant burgers, value breakfast menu and its plastic king mascot.[6] Kerrii Anderson, Wendy's CEO since 2006, failed to keep up with new product introductions from McDonald's, which added snack wraps and premium coffee, and Burger King, which offered a discount breakfast menu.[5]
Wendy's employees received the news yesterday morning in a meeting in the lobby of the company headquarters. They were told there will be changes, including possible layoffs, but that details will not be available for several months.[6] Wendy's, which was founded and based in Ohio, has been acquired by the parent company of Arby's.[1] Franchisees also are anxious, said Roger Webb, owner of Wenco Group, which owns 38 Wendy's restaurants in Florida and Alabama. "It's difficult to understand how the personality of Wendy's merging with Arby's would be good for Wendy's," Webb said.[6]
Longtime restaurant operators in the chain complained that Wendy's was getting away from the path cleared by Thomas.[6] Thomas became the public face of Wendy's, playing the role of a self-effacing boss plugging the chain's hamburgers, French fries and milk shakes. "Our strategy isn't to make me a hero, it's to tell people about our quality food, good service and clean restaurants,'' Thomas said in a 1996 Bloomberg interview.[5]
Get the inside scoop on the Berkshire Hathaway Annual Meeting. If you want a meatier stock than Wendy's, there is one fast-growing quick-service chain that has nearly doubled since it was recommended in both Rule Breakers and Motley Fool Hidden Gems.[41] "The announced agreement implies a mere 6% premium to Wendy's closing stock price, and promised merger synergies are vague as to content and the timing of realization," Levenson said. "Apart from increasing its scale and some potential cost savings, this appears to be a credit-harming outcome for Wendy's."[37]
Based on cash flow, the deal puts a price tag of about 8- to 8.5-times adjusted 2007 EBITDA on Wendy's, which is a valuation level reminiscent of the buyout peak.[37] JP Morgan and Greenhill provided financial advice to Wendy's International on the deal.[17]
The companies will continue to operate as separate business units, with Arby's in Atlanta and Wendy's in Dublin, Ohio. [23] Arby's and Wendy's will operate as autonomous brand business units headquartered in Atlanta, Georgia, and Dublin, Ohio, respectively.[12]
The structure of the combined companies will include Arbys and Wendys centers in Atlanta, Georgia, and Dublin, Ohio, respectively, focusing on operational improvements.[18]
Arby's Buys Wendy's for 2.34 Billion; Tria. Type in your e-mail address below to receive an automated reminder to come back and read this piece of content.[56]
Kerrii Anderson, Wendy's current chief executive, will remain with the company through the transition but will leave after that, Smith said.[6] "We need to try to recapture the premier status that Wendy's owned for years and years," Smith said.[6] Mr. Smith, a 53-year-old West Point graduate whose first job was cleaning bathrooms at a McDonald's, says a top priority will be fixing Wendy's advertising campaign. "Few brands are able to be everything to everyone all the time," he said.[4]
Pershing has had a stake in McDonald's in the past and has had success buying into undervalued restaurant companies, said John Owens, a Morningstar analyst. It looks as if Pershing is doing the same with Wendy's, he said.[50] Wendy's, which operates some 6,600 restaurants in the United States and Canada, was set up in 1969 by David Thomas. He died in 2002, and the restaurant's business was never the same after that.[40] Wendy's expansion efforts had mixed results, but experts say the overall push caused management to lose focus on its core burger business.[6]
Miller expects Peltz to franchise the stores Wendy's owns, sell some real estate, consolidate the duplicate back office, and come up with a plan to increase revenue.[24] Standard & Poor's analyst Mark Basham says Wendy's finally surrendered after a series of failed efforts to boost sales. MARK BASHAM, EQUITY ANALYST, STANDARD & POOR'S: They've changed their advertising a couple of times. They've tried to switch up the menu, to get, first to get higher premium products on the menu. When that didn't work, they tried a value approach to drive traffic. That really hasn't worked in my opinion.[49] Diners enjoy the food at the original Wendy's, 257 E. Broad St., on March 1, 2007, the day before it was closed forever because of lagging sales.[51] The average estimate of nine analysts surveyed by Bloomberg was for 17 cents. Wendy's reported earlier this month that sales at company- owned and franchises outlets dropped for the second quarter in a row.[5]
The deal comes as the nation's third-largest hamburger chain struggles with declining profits and weak sales compared with rivals McDonald's and Burger King.[29] The all-stock deal ends the involvement of the Thomas family, which started the chain in Columbus in 1969.[6]
BTW, this deal closed at about $3 below what we expected. Don't know yet if this will sail through shareholder approval, so this may not be over just yet.[7] I really expected the board of directors to hold out for $30 (you can read the full op-ed piece from right when the deal was announced).[46]
The new board will have 12 members, including two directors nominated by Wendys. [18] The Wendy's board had turned down at least two prior offers, according to the Associated Press.[16]
Wendy's U.S. margins before interest, taxes, depreciation and amortization were 8.1 percent in the first quarter.[5] The U.S. Department of Transportation has awarded Gulf Marine Repair of Tampa a $487,630 grant for four cranes and other manufacturing equipment under a program to cover 75 percent of business improvements for ship construction and repair.[34] In 2006, Pinellas' per capita personal income was 113 percent of the U.S. per capita personal income of $36,714.[34] The euro against the U.S. dollar fell 1.24% to $1.5692, while the price of gold dropped $19.60 to $889.40 per ounce.[14]
Eleven months of new homes are sitting on the market, the largest inventory since Sept. 1981, while the median sales price fell from $244,200 to $227,600.[14] Crude oil for June delivery fell $2.24, or 1.9%, to settle at $116.06 Thursday on the New York Mercantile Exchange. Hershey Co. said profit fell for the sixth consecutive quarter after its second price increase in a year failed to overcome higher costs for ingredients.[26]
Revenue was down slightly to $513 million from $522 million a year ago.[11] Total revenue dipped to $513 million from $522 million logged last year.[40]
The results, reported yesterday, showed that net income declined to $4.1 million in the period compared with $14.7 million a year earlier.[6]
The combination of the two chains may produce $100 million in additional operating earnings over time from reduced food, labor and operating expenses.[32]
If Peltz would have gotten the Trian Acquisition I Corp. (AMEX: TUX ) special purpose acquisition company (SPAC) involved, that $30 level could have probably been reached. [46] Minutes after the Delta/Northwest proposal was announced, speculation began that United and Continental airlines are working on a merger, which would make it the world's largest airline. It was announced that Liberty Mutual Group of Boston will purchase the Seattle-based Safeco insurance company for $6.2 billion in an all-cash acquisition.[52]
With a 10% stake in the company before the merger, Mr. Peltz stepped down from the board last year to avoid conflicts involved in a possible purchase.[44] On April 17, the board turned down two bids from Triarc and Trian Fund Management, which is Mr. Peltz's hedge fund.[4] Mr. Peltz, a food mogul and activist shareholder, then called for a meeting of the board of directors.[44]
Nelson Peltz is the worst thing that could have ever happened to WEN. You want to see a stock slide? Stay tuned.[7] Friday April 25, 2008: 7:00 A.M. ET--U.S. stock futures pointed towards a higher open as the dollar continues to gain strength today. Yesterday after the close, Microsoft (NASDAQ: MSFT) reported their third-quarter earnings of 47 cents a share, which was slightly ahead of the 44 cent forecast.[28] Thursday's heavy load of economic data and earnings news was both good and bad, but investors chose to focus on the positive, causing stocks to close solidly higher.[14] Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms.[37]
The investment firm owns enough stock to '''get the attention of other shareholders,''' who still must approve the deal, Lombardi said.[50]
Previously reported first-quarter same store sales at U.S. company-operated restaurants fell 1.6%, compared to a rise of 3.8% a year ago. [15] Triarc is the franchisor of the Arby's restaurant system which has 3,700 outlets in the U.S. and Canada.[12] Smith cited the 2005 acquisition of RTM Restaurant Group, Triarc's largest franchisee with 775 Arby's restaurants.[38]
Smith said the new company hopes to improve margins at company-owned stores and improve efficiency to create savings for the combined brands. "Through the execution of major operating improvements and the realization of synergies, we expect to generate substantial value for shareholders," he said. [9] Light sweet crude for June delivery jumped sharply today, closing up $2.46 to $118.52 a barrel, after news that a U.S. Naval ship fired warning shots at two Iranian boats in the Persian Gulf. Speculators worried that this may cause supply issues from an already unstable Middle-East region. A report on U.S. consumer confidence fell to 62.6 according to the University of Michigan index to its weakest point since 1982.[28] In Hillsborough County, per capita personal income grew to $35,079, up by 4.2 percent, while it grew to $27,476, up 6.4 percent, in Pasco County.[34] Data show that Pinellas County's per capita personal income grew to $41,448 in 2006, up 7.6 percent from 2005.[34]
The burger chain formed a special committee to decide the company's fate last year, and released a statement in January that the decision was nearly complete. [44] There are fewer locations open today than there were a year ago. In a nutshell, investors aren't going to like this exit strategy, but the company's lackluster performance wasn't going to smoke out higher bids in the near term.[41]
SOURCES
1. Columbus Based Wendys Bought Out by Atlanta Based Arbys | Cleveland Leader
2. Arby's to buy Ohio-based Wendy's - Business Courier of Cincinnati:
3. Deal of the Day
4. Arby's Owner Makes A Deal For Wendy's
5. Bloomberg.com: Worldwide
6. The Columbus Dispatch : Wendy's: End of an era
7. Deal Journal - WSJ.com : Here's the Beef: Competition Whetted Peltz's Appetite for Wendy's
8. eCanadaNow.com - Wendy's Merges With Arby's Parent Company
9. Arby's parent inks $2.3B deal for Wendy's - South Florida Business Journal:
10. FOXNews.com - Arby's owner buying Wendy's in all-stock deal - Business And Money | Business News | Financial News
11. TheStar.com | Business | Wendy's sells to Arby's owner
12. AFP: Triarc to gobble up US hamburger chain Wendy's
13. Arby's Parent Buying Wendy's In Stock Deal
14. Stocks Finish Higher
15. Will Triarc Save Wendy's?
16. Arby's-Wendy's Combo Finally Finds the Beef - - CFO.com
17. Financial News and Information from Financial News Online US
18. Arbys Parent Triarc Agrees to Buy Wendys for $2.3 Bln - International Business Times -
19. Food Billionaire To Buy Wendy's - Forbes.com
20. MidwestBusiness.com: Midwest Business & Technology News
21. Triarc Buying Wendy's In All-Stock Deal | News | WXMI.com | FOX 17 | Grand Rapids
22. Did Wendys Get Short-Changed? - Mergers, Acquisitions, Venture Capital, Hedge Funds -- DealBook - New York Times
23. Wendy's, Arby's parent will merge - Kansas City Business Journal:
24. Peltz Gets His Grill - Forbes.com
25. Triarc Companies Buys Wendy's - Restaurant News - QSR Magazine
26. United raises many fares | Freep.com | Detroit Free Press
27. WHKP 1450 AM Radio - Arby's Buys Wendys
28. News Briefs - Comtex SmarTrend Alert
29. Dayton, Ohio Weather, News, Sports and Entertainment WDTN.com, 2 On Your Side News and Weather: Arby's owner buying Wendy's for $2.34 billion stock deal
30. GoErie.com: XP might not get purged
31. FT.com | Peltz'''s Triarc buys Wendy'''s for $2.3bn
32. Billionaire Nelson Peltz's Triarc Cos. to buy Wendy's, will combine hamburger chain with Arby's -- chicagotribune.com
33. Owner of Arby's purchasing Wendy's | courier-journal | The Courier-Journal
34. Business Briefs
35. For some, Wendy's buyout unappetizing
36. Atlanta's Triarc to buy Wendy's for $2.34 billion | ajc.com
37. DealZone » Blog Archive » Wendy's auction ended with a busy final week | Blogs | Reuters.com
38. New Wendy's CEO promising improvements, better franchisee relations - Atlanta Business Chronicle:
39. Wendy's International (WEN) NewsBite - Wendy's Surges on Merger News
40. Arby's Buys Wendy's For $2.34B | April 27, 2008 | AHN
41. Arby's Gets the Red-Headed Girl
42. Arbys B1 rating affirmed on parent cos merger deal with Wendys - Moodys | Latest News | News | Hemscott
43. Arby's Restaurant creditwatch status revised to developing from negative - S&P; - Forbes.com
44. Wendys Merges With Triarc - Advertising Age - News
45. Arby's Owner Is Buying Wendy's - News |WJTV - News Channel 12 - Jackson, MS
46. Wendy's buyout: A huge score for Peltz,Triarc and its investors - BloggingBuyouts
47. Fast food restaurant Wendy's to be swallowed by rival Arby's - Business
48. Peltz trumps Kelso to buy Wendy's for $2.3bn
49. Nightly Business Report . Arby's Finds The Beef By Buying Wendy's | PBS
50. The Columbus Dispatch : Hedge fund is wild card in Wendy's sale
51. The Columbus Dispatch : Wendy's timeline
52. HeraldNet: As times get tougher, big business gets bigger
53. Arby's owner to buy Wendy's 3:41 PM | Local News | News for Charlotte, North Carolina | WCNC.com | Top Stories
54. Wendy's Intl still on negative watch after agreed merger with Arby's - S&P; - Forbes.com
55. Untitled
56. Arby's Buys Wendy's for 2.34 Billion; Triarc Square Roast Beef? - Associated Content
GENERATE A MULTI-SOURCE SUMMARY ON THIS SUBJECT:
Please WAIT 10-20 sec for the new window to open...
You might want to EDIT the default search query below:
Get more info on Will Triarc Save Wendy's? by using the iResearch Reporter tool from Power Text Solutions.
 |
|  |
|
