Where’s The Beef? Obviously Not At Arby’s As Wendy’s Sells Chain
Popular fast food restaurant Wendy's, who owns Arby's Fast food restaurants is selling the popular chain. Guess the Popular old slogan for Wendy's "Where's the Beef ?" didn't ring true for the Arby's Restaurant Chain.
NEW YORK (CNNMoney) -- The company that owns both Wendy's and Arby's is ditching the roast beef chain to focus on reinventing Wendy's.
Wendy's/Arby's Group (WEN) shares surged 6.9% in pre-market trading Monday after the fast food restaurateur announced it will sell most of its stake in the struggling Arby's chain.
Roark Capital Group, an Atlanta-based private equity firm, is buying 81.5% of Arby's in a deal estimated at $430 million. Wendys/Arby's Group will retain an 18.5% share in the company after the deal.
Roland Smith, president and CEO of Wendy's/Arby's Group, said in a release that the deal will "allow us to devote our full attention and resources on the exciting growth opportunities we have at Wendy's."
Smith also said he wants to revitalize Wendy's core menu, expand breakfast offerings and update its buildings as it goes toe-to-toe against rivals McDonald's (MCD, Fortune 500) and Burger King.
A Wendy's/Arby's spokesman said there are no current plans to close Arby's stores, other than those that would have been closed anyway due to leases expiring.
He also said the name of the company will eventually be changed, but that the new name won't be announced until the deal closes.
The announcement comes after top executives at the company said earlier this year, that they were searching for "strategic alternatives" for Arby's, after being approached by an unnamed buyer.
Which do you prefer, Arby's or Wendy's???