Wendy’s Announces the Sell Of Arby’s

America has been going through a period where consumers are continuously looking to improve their diet. Regardless of the changes around the country, fast food companies have continued to perform as normal. Unlike other major fast food corporations, Wendy’s Arby’s Group Inc. (NYSE:WEN) has not been able to venture into the international market and as a result, they have been losing their overall revenue. In addition, the US market has been changing slowly and as a result, Arby’s has been losing revenue. In January of this year the company announced that they were looking to sell their Arby’s branch as it has continued to under perform and hold back the growth of the rest of the company. Wendy’s on the other hand as continued to do well. In fact the fast food chain was recently voted as America’s favorite fast food restaurant, beating out McDonalds and Berger King. Wendy’s is known to have a unique menu which caters to all groups of people, however Wendy’s has not been able to develop and expand as much as they would have liked. As Arby’s has been up for sale for almost six months now, the company has not made any announcements regarding the sale until now. In a news conference, it has just been announced that an Atlanta based company has decided to make an offer that Wendy’s Arby’s Group could not refuse. Based on the terms of the sale, the buyers will pay approximately $130 million for a majority share of Arby’s and Wendy’s will still hold 18.5% shares of Arby’s. In addition, the new buyers will also take responsibility of the $190 million debt that Arby’s currently holds.

The fast food market is changing fast and even the federal government has stepped in to regulate how these companies will be able to work in the future. In an effort to keep up with the changing laws it is crucial for these companies to get rid of any portion that has not been performing well. Starting next ear, they will have to change the way they advertise and the way they attract their customers. In addition they will have to follow additional laws and change their menus so that they are able to inform their customers better, regarding the types of food they are selling. Wendy’s will have the additional funds from the sale in order to keep up with the changes.

Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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