WASHINGTON In separate but nearly identical letters sent to both the Wendy’s and Arby’s systems, chain officials said the two parties were making “good progress” on the operational details surrounding the pending buyout of Wendy’s by Arby’s parent Triarc Cos. Inc. The letters also were filed with federal regulators here.
Kerrii Anderson, outgoing chief executive and president at Wendy’s, and Sharron Barton, chief administrative officer at Arby’s and integration lead for the acquisition, said additional communication in about six weeks would detail the combined company’s organizational structure and staffing decisions.
“We know that everyone is anxious to know this information as quickly as possible,” the letters stated. “We are working diligently with that in mind, while still ensuring we exercise the due diligence and care required to align our resources with the great opportunities we will have in the future.”
Arby’s owner Triarc agreed in April to take over Wendy’s International Inc., corporate owner of the 6,600-unit Wendy’s chain, for about $2.34 billion, or $26.78 per share, in an all-stock deal. Triarc has already said it would likely cut jobs at Wendy’s to reduce costs and that it would place Roland Smith, Triarc’s chief executive, in charge of both chains. Triarc’s majority shareholder and nonexecutive chairman is Nelson Peltz, a billionaire investor who has owned a stake in Wendy’s for years and agitated for change at the restaurant company.
Plans remain to keep Wendy’s based in Dublin, Ohio, and to keep the 3,694-unit Arby’s chain based in Atlanta, the letters said. A shared corporate home in Atlanta also is planned.
The letters stated that Smith had spent six days in July “learning operations, meeting restaurant employees, and building a deeper ‘front line’ perspective of the rich opportunities for the Wendy’s brand.”
Wendy's, the No. 3 burger chain behind McDonald's and Burger King, is one of few quick-service brands that has been unable to capitalize on today's consumer need for lower-priced food in the midst of a troubled economy. While competitors have posted same-store sales increases in the mid-single digits, Wendy’s latest results included same-store sales upticks of 0.1 percent at corporate locations and 1.1 percent at franchised restaurants. Arby’s also has suffered on the same-store sales front, compared with other quick-service competitors, and most recently posted a 0.4-percent systemwide same-store sales increase for its first quarter.
The companies expect the acquisition to close in the second half of the year.