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

Index Last Change % Change
Dow 21,438.31 28.28 0.13%
Nasdaq 6,248.54 14.59 0.23%
S&P 500 2,439.61 4.00 0.16%
Treasuries 2.15 -0.00 -0.09%
Data as of 2:54pm ET
Company Price Change % Change
Advanced Micro Devic... 14.28 0.30 2.15%
Oracle Corp 50.44 4.12 8.88%
Bank of America Corp... 22.98 -0.14 -0.63%
Chesapeake Energy Co... 4.58 0.07 1.44%
Ford Motor Co 11.18 0.14 1.27%
Data as of 2:39pm ET
Sponsors

Sections

It's a tale of two toy stocks. Mattel has tanked this year, despite hiring a new CEO from Google. But Hasbro's stock has soared and is trading near an all-time high. Hasbro has the kids that toys want and Mattel doesn't. More

The man running Britain's economy has warned that uncertainty over Brexit is stopping businesses from investing in the country. More

Mark Zuckerberg explains why Facebook is moving on from just friendships to community building. More

It's not just lower earners who find college unaffordable. New data reveals that wealthier families struggle as well. More