Wendy's Restaurants Sells Arby's Chain, Changes Name
ATLANTA (AP) - Wendy's/Arby's Group on Tuesday said it completed the sale of Arby's Restaurant Group to Atlanta-based private equity firm Roark Capital Group, and dropped the roast beef sandwich chain from its name.
The company will do business as The Wendy's Company effective Tuesday and continue to trade under the ticker "WEN" on the New York Stock Exchange.
The $130 million sale of 81.5% of Arby's was completed less than a month after it was announced. Wendy's kept an 18.5% stake in the fast-food chain, which Wendy's CEO Roland Smith said last month signals the company's confidence in Arby's future. Roark Capital also assumed $190 million worth of Arby's debt.
Wendy's and Arby's were combined in 2008 after Nelson Peltz and his investment firm, which already owned Arby's, bought the Atlanta-based Wendy's hamburger chain. The combined company struggled since its formation in the midst of the Great Recession, losing money seven of its 10 quarters.
Wendy's has about 6,600 restaurants; Arby's has about 3,600.
Arby's is the 11th food service company Roark has purchased. Its stable also includes Carvel Ice Cream, Cinnabon, Auntie Anne's, Moe's Southwest Grill and some Seattle's Best Coffee outlets. It acquired Corner Bakery Caf and Il Fornaio Restaurants and Bakeries last month.
Smith said Wendy's will now focus on its namesake chain, with plans to revamp the menu, including offering breakfast items, along with updating restaurants and building new locations in the U.S. and globally.
The company plans to release second-quarter financial results Aug. 11 before the market opens.
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