DUBLIN, OHIO Wendy’s International Inc., the emergence of two potential bidders to join the parent of Arby’s as suitors has heightened speculation about the No. 3 burger brand’s destiny. —After months of uncertainty and franchisee unrest over the future direction and ownership of
One would-be buyer of Wendy’s is a 134-unit Wendy’s franchisee, adding a dramatic twist to last month’s verbal attack on the Dublin-based franchisor by the owners of some 1,100 Wendy’s outlets. They claimed the company had ignored franchisees’ input on a possible sale of the brand while mismanaging the chain and making it vulnerable to a takeover. —After months of uncertainty and franchisee unrest over the future direction and ownership of
Also, three private-equity firms, one of which had teamed with others previously to buy Dunkin’ Brands and Aramark, reportedly joined a title insurance and investment company led by a former CKE Restaurants chairman and chief executive to prepare a potential bid to acquire Wendy’s. —After months of uncertainty and franchisee unrest over the future direction and ownership of
The Dunkin’ Brands and Aramark co-venturer, Thomas H. Lee Partners LP, has joined forces with Oaktree Capital Management LP, Ares Management LLC and Fidelity National Financial in that prospective deal, The Wall Street Journal reported Sept. 27. —After months of uncertainty and franchisee unrest over the future direction and ownership of
The latter firm is led by exCKE chief William Foley. In addition to heading Jacksonville, Fla.-based Fidelity, he is involved with the Montana-based holding company Glacier Restaurant Group LLC, which owns four fledgling chains: Mackenzie River Pizza Co., Mambo’s Italian, Craggy Range Bar and Grill, and Corner House Grille. —After months of uncertainty and franchisee unrest over the future direction and ownership of
Foley’s recent connection to that group marked his first foray in foodservice since his 2005 departure from CKE, parent of the Hardee’s and Carl’s Jr. brands, 12 years after he began making major investments in that company. —After months of uncertainty and franchisee unrest over the future direction and ownership of
Thomas H. Lee Partners’ link to a potential bid for Wendy’s gives such a deal added gravity because of the Boston-based firm’s role in teaming up with other large buyout specialists in the multibillion-dollar acquisitions in 2005 and 2006, respectively, of Dunkin’ Brands and Aramark Corp. —After months of uncertainty and franchisee unrest over the future direction and ownership of
Word of the Lee-Oaktree-Ares-Fidelity group’s interest in Wendy’s came a day after J. David Karam, president of Wendy’s franchisee Cedar Enterprises Inc. of Columbus, Ohio, revealed its plans to join with two private-equity firms, Kelso &Co. and Oak Hill Capital Partners, to prepare a possible bid for Wendy’s. —After months of uncertainty and franchisee unrest over the future direction and ownership of
The third acknowledged suitor, out of more than 12 parties that are said to have signed confidentiality pacts with Wendy’s to consider a buyout, is Arby’s parent Triarc Cos. Inc. Its potential offer of as much as $3.6 billion, or $41 a share, has been spearheaded publicly by its nonexecutive chairman, Nelson Peltz, whose Trian Fund Management already controls a 9.8-percent stake in Wendy’s. —After months of uncertainty and franchisee unrest over the future direction and ownership of
Industry observers have speculated that still more bidders could come forward, despite a credit crunch that has made many banks wary of lending large sums for leveraged buyouts. —After months of uncertainty and franchisee unrest over the future direction and ownership of
Some industry watchers have expressed surprise that few potential bidders for Wendy’s have been identified in the months since the company said it might do a major recapitalization or consider a buyout. —After months of uncertainty and franchisee unrest over the future direction and ownership of
“I think it’s surprising that you have a significant player, and that you have heard from only three bidders,” said foodservice analyst and consultant Ron Paul, president of the Chicago-based Technomic Inc. research firm. “I’m surprised we haven’t seen anything from someone like Yum! Brands that doesn’t have a significant burger concept and has an opportunity to grow Wendy’s worldwide.” —After months of uncertainty and franchisee unrest over the future direction and ownership of
Unidentified sources said to be involved in discussions with Wendy’s about a possible sale have been quoted as indicating that the slow pace of developments reflects difficulties Wendy’s is having in arranging prepack-aged financing for prospective buyers —a seller-directed option for such deals that is known as “staple financing.” —After months of uncertainty and franchisee unrest over the future direction and ownership of
Peltz, for his part, has expressed concern that Wendy’s apparent adherence to that approach would hinder bidders who wished to arrange their own financing. —After months of uncertainty and franchisee unrest over the future direction and ownership of
Officials of all the newly identified investor groups and firms could not be reached for comment immediately. —After months of uncertainty and franchisee unrest over the future direction and ownership of
A Wendy’s spokesman said the franchisor would not discuss the developments. —After months of uncertainty and franchisee unrest over the future direction and ownership of
Earlier last month 16 Wendy’s franchisees, representing about 24 percent of the U.S. franchised outlets of the 6,015-unit chain, wrote to Wendy’s board, castigating it and senior management for a variety of alleged misdeeds, including a purported disregard for the financial risks franchisees faced as the brand was in play. —After months of uncertainty and franchisee unrest over the future direction and ownership of
Wendy’s chairman James Pickett and chief executive Kerrii Anderson each refuted the group’s claims in written statements. —After months of uncertainty and franchisee unrest over the future direction and ownership of
Of the known suitors, only Columbus-based Cedar Enterprises is said to have the support of Wendy’s founder Dave Thomas’ widow and children, who have publicly expressed concern about a potential sale. The franchisee’s president is the son of Joseph Karam, who was a contemporary of Thomas’ and became a Wendy’s operator in 1975, six years after the chain’s founding, also in Columbus. —After months of uncertainty and franchisee unrest over the future direction and ownership of
