Wendy's puts Arby's up for sale

wendysarbysYEAR.top.pngClick chart to track Wendy's/Arby's Group's stock. By Hibah Yousuf, staff reporter


NEW YORK (CNNMoney) -- Wendy's/Arby's Group shares spiked almost 6% Thursday morning after the fast food giant announced it may sell its struggling Arby's roast beef sandwich chain to focus resources exclusively on the Wendy's brand.

Sales at Arby's North American restaurants open at least 15 months fell 5.9% during the third fiscal quarter, following a 7.4% drop in the second quarter and an 11.5% decline in the first quarter.

Wendy's/Arby's (WEN) chairman Nelson Peltz said "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."

The company said it is working with UBS Investment Bank to explore "strategic alternatives" for Arby's, including a sale of the chain.

Last year, Peltz said he and his hedge fund, Trian Fund Management, which together hold a 22% stake in Wendy's/Arby's, were considering selling the restaurant group after receiving an "oral inquiry" from an unnamed party about a possible acquisition.

In 2006, Peltz pushed successfully for a spin-off of the Tim Hortons (THI) coffee chain and sale of ancillary brands, including Baja Fresh.

The news of a possible Arby's sale follows rival Yum! Brands (YUM, Fortune 500) announcement earlier this week that it plans to sell two smaller underperforming chains it owns -- seafood restaurant Long John Silver's and burger joint A&W Restaurants.  To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 17,057.09 -14.13 -0.08%
Nasdaq 4,495.99 -9.86 -0.22%
S&P 500 1,973.32 -4.48 -0.23%
Treasuries 2.49 -0.00 -0.04%
Data as of 12:42pm ET
Company Price Change % Change
Ford Motor Co 14.86 -0.24 -1.62%
eBay Inc 56.56 3.90 7.41%
Bank of America Corp... 17.02 0.01 0.06%
Apple Inc 100.87 0.76 0.76%
Facebook Inc 79.33 0.33 0.42%
Data as of 12:27pm ET

Sections

CNNMoney's Italian-American investing correspondents did a taste test of Olive Garden's food. They agree with hedge fund Starboard: It's not very appetizing. More

Even limited air operations could cost up to $4 billion a year, says a think tank, while large ground forces could cost $1.8 billion a month. More

Testing whether the iPhone 6 Plus BendGate controversy is real, some are testing it out in Apple Stores. More

On Wednesday, 17% of First Green Bank's 66 employees will get a raise under the company's new "living wage" program. The guarantee: At least about $30,000 a year. More

This mom of four only makes $29,000 a year and is losing $400 a month because the state is garnishing her paycheck over a debt. Now she is about to be evicted from her apartment. More

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.