ATLANTA -- Another quick-service restaurant brand could be about to go on the block. Wendy's/Arby's Group Inc., the third-largest QSR company in the United States, has announced that it is exploring strategic alternatives for Arby's Restaurant Group Inc., including a sale of the brand. UBS Investment Bank is assisting in the process.
Earlier this week, Louisville, Ky.-based Yum! Brands Inc. said that its plans to place its Long John Silver's and A&W All-American Food Restaurants for sale. (Click here for previous CSP Daily News coverage.)
Arby's is the second-largest U.S. quick-service sandwich chain with nearly 3,700 restaurants. Arby's restaurants specialize in slow-roasted and freshly sliced roast beef sandwiches as well as Market Fresh deli-style sandwiches, toasted subs and salads, all with the convenience of a drive-through.
Nelson Peltz, chairman of Wendy's/Arby's Group, said, "We believe the way to maximize shareholder value is to focus all of our management and financial resources on continuing to build the Wendy's brand. Arby's is a good business, and we are making progress improving its performance, as evidenced by the 3.1% increase in company-operated same-store sales in the fourth quarter of 2010; however, despite Arby's positive momentum, the reality is that the Wendy's brand, given its relative size and scope, is the key driver of shareholder return, and we believe we should focus on the execution of the compelling growth opportunities at Wendy's."
Roland Smith, president and CEO of Wendy's/Arby's Group, said, "Wendy's currently has more than 6,500 restaurants in more than 20 countries and is one of the most attractive growth stories in the quick-service restaurant industry. A pure-play Wendy's will enable us to focus all of our energies on growing the Wendy's brand via new store growth both in North America and international markets, and with accelerated same-store sales through the introduction of new dayparts and core menu innovation."
Atlanta-based Wendy's/Arby's Group includes Wendy's International Inc., the franchisor of the Wendy's restaurant system, and Arby's Restaurant Group, the franchisor of the Arby's restaurant system. The combined restaurant systems include more than 10,000 restaurants in the United States and 24 countries and U.S. territories worldwide.
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