Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

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

Search for Jobs

Index Last Change % Change
Dow 18,169.27 -53.76 -0.30%
Nasdaq 5,283.40 -26.43 -0.50%
S&P 500 2,143.16 -8.17 -0.38%
Treasuries 1.76 -0.01 -0.28%
Data as of 2:16am ET
Company Price Change % Change
Chesapeake Energy Co... 6.11 -0.25 -3.93%
Under Armour Inc 32.89 -5.01 -13.22%
Freeport-McMoRan Inc... 10.55 0.37 3.63%
Bank of America Corp... 16.72 -0.05 -0.30%
Apple Inc 118.25 0.60 0.51%
Data as of Oct 25


Donald Trump has repeatedly said he pays "tremendous" amounts in taxes, but when it comes to his properties, he fights to pay as little tax as possible. And that often comes with a cost to the towns or cities where Trump owns property. More

Food shortages, recession, skyrocketing inflation and a plummeting currency are just a few issues causing Venezuela to dive deeper into crisis. More

Apple's sales declined for the third consecutive quarter, but the company expects to grow again next quarter. More

People flying on Delta can now use the company's app to see where their luggage is in its journey to its final destination. More