Arby’s sale being considered
Posted: Monday, January 24, 2011 6:01 pm
ATLANTA (AP) — Wendy’s/Arby’s Group Inc. is considering selling its struggling Arby’s business and concentrating more on its expansive Wendy’s hamburger chain. Its shares rose more than 9 percent in pre-market trading.
The Atlanta restaurant operator has experienced softness at both its Wendy’s and Arby’s locations, but Arby’s has long been suffering because its sandwiches can cost $5 or more, more expensive than many other fast-food offerings.
Diners have focused on value and price in the economic downturn, seeking cheaper alternatives.
While Wendy’s/Arby’s announced in November that Arby’s would be coming out with lower-priced options, the company has now decided to pursue strategic options and potentially shed the operations.
UBS Investment Bank will help Wendy’s/Arby’s as it explores alternatives for Arby’s.
The Arby’s sandwich chain has almost 3,700 restaurants and is known for its roast beef sandwiches.
The restaurants also serve deli-style sandwiches, toasted subs, salads and other items.
Chairman Nelson Peltz said in a statement last week that the company believes the best way to maximize shareholder value is to concentrate its efforts on Wendy’s.