This Just In: Arby's Swallows Wendy's Whole

This Just In: Arby's Swallows Wendy's Whole

"After two past rejections, the owner of Arby's shaved roast beef sandwich restaurants is buying Wendy's, the fast-food chain famous for its made-to-order square hamburgers and chocolate Frosty dessert, for around $2 billion.
Triarc Companies Inc., which is owned by billionaire investor Nelson Peltz, said Thursday it will pay about $2.34 billion in an all-stock deal for the nation's third-largest hamburger chain started in 1969 by Dave Thomas. Wendy's had rejected at least two buyout offers from Triarc."

Full Article:

http://ap.google.com/article/ALeqM5iT9QC30xf9EMWG2Kbg4gKrpNUXjwD9089AP80

I like both Arby's and Wendy's for what they are. (I'd still rather have "real" food rather than "fast" food) However, I would rather NOT see Wendy's swallowed up by another chain. I think the best would have been if they had been purchased by David Karam, as noted in the article. Oh well, let's hope they don't screw it up.

Dan

R.I.P. Wendy's...you will be missed!

Oh no! Now Wendy's is going to suck! Oh wait, it does already.

Funny how these folks are upset and devastated by shareholders doing what shareholders do. If they wanted to run it their way they shouldn't have gone public.

Now me, I'm wondering what the deal means to the guy who lives across the road from me. He's an executive pilot for Wendy's -- flying their jets around.

There is another thread about this on the FF Forum. It looks like the wendy's stockholders are getting a decent exchange. However in all 'mergers' look out for the personnel cuts that are bound to come.

2 billion in stock sound too cheap. I guess if most stores are francisee' owned that cuts dwn the real real property holdin immensly. AT first I thought of all the stores nationwide and and didnt stop to think.
britt

quote:

Originally posted by Al-The Mayor-Bowen

There is another thread about this on the FF Forum. It looks like the wendy's stockholders are getting a decent exchange. However in all 'mergers' look out for the personnel cuts that are bound to come.

Yes, and I posted it about 1 1/2 hours before this thread was begun!

;-))

talk about corporate decisions and such is fine...but most of us just care about what this will di to Wendy's. I'm not a big fan of Wendy's,but when I eat there I find the food OK,for what it is...but Arby's is garbage by most definitions of the word...and the company that sells that "beef" cold cut-mystery meat sandwich...what will they do to the girl with the Red Pigtails...I think they just turned gray!!

How did Arby's get $2 billion? How often does anyone see a crowded Arby's?

Dearfolk,
In this area, almost all Wendy's share lotspace with Captain D's Seafood, because the same franchisee owns both. I wonder how this will affect that arrangement, or if it will at all.
I really shouldn't care, because my days of eating in either restaurant are over, unless I am utterly forced to do so to stave off starvation... it seems that every time I'm forced into chain-(tr)eatment, I'm less enamored with the entire mediocrily-predictable concept... give me something, anything original and even quirky, and I'll be happy.
Unchained (My Heart), Set Free Ort. Carlton in Ray-Charles-Performed-Here-At-Least-Seven-Times Athens, Georgia.

Not sure why the complaints about this deal...shareholders are getting a significant premium over current market value, and on a stock that hasn't performed otherwise in quite a while. Its also worth noting that the board did the right thing--this deal was by far the richest one on the table among several competing offers, and they did right by their shareholders by taking it.

If you don't like the food/service at Wendy's, then you should be happy with a management change--the primary purpose of an operations-focused buyout is to improve operations and product, and thus hopefully win back patrons.

As for the comment that Wendy's is going away, that's very unlikely. This offer represents a significant premium over book value, meaning the buyer is after the brand as much anything. So the last thing they are likely to do is do away with the Wendy's concept.

I feel sorry for Dave Thomas' family as much as anyone--he was a true gentleman. But his successors didn't perform and in the world of public companies, you hit the numbers or you go home.

quote:

Originally posted by Ort. Carlton.

Dearfolk,
... it seems that every time I'm forced into chain-(tr)eatment, I'm less enamored with the entire mediocrily-predictable concept... give me something, anything original and even quirky, and I'll be happy.

"Sticks and stones may break my bones, but whips and chains excite me!"

wendy is okay( not as good or as much personality as in and out or white castle) but better than most of the ilk...arby's though yucc...what is that stuff they call roast beef??? now RoyRogers, mostly gone I think had roast beef- arby's has shaved plastic!

quote:

Originally posted by Robearjr

How did Arby's get $2 billion? How often does anyone see a crowded Arby's?

It's not Arby's. It's the guy who owns the company that owns Arby's.

Ok, then how would someone who is a principal investor in Arby's have $2 billion.

I am slightly perplexed that someone could be successful and think investing in Arby's is a good idea.

Q. Want to know how to get a billion dollars owning Wendy's?










A. Spend two billion dollars for it.

quote:

Originally posted by Robearjr

Ok, then how would someone who is a principal investor in Arby's have $2 billion.

I am slightly perplexed that someone could be successful and think investing in Arby's is a good idea.

Nelson Peltz is a multi-billionaire who has made millions from his investment in Arby's. That's what he does -- he buys companies for a living.

quote:

Originally posted by Robearjr

Ok, then how would someone who is a principal investor in Arby's have $2 billion.

I am slightly perplexed that someone could be successful and think investing in Arby's is a good idea.

Nelson Peltz, in fact, has made a substantial profit on his Arby's investment. You have to distinguish between a bad company and a bad investment...they are not the same thing. A company with a reputation for poor quality and operations may be discounted in the equity markets more than it should, based on analysis of intrinsic value and free cash flow. This makes such a firm attractive to someone like Peltz, who can arbitrage the difference. Also, as an activist investor, he can buy companies which he feels have strategy and/or management problems, at a perceived discount because of these problems, fix them, and then sell them. Its difficult and risky but that's why he's a billionaire...

Let's see, I'll have a roast beast sandwich, give me a couple of sauces, some homestyle fries and some Wisconsin cheese soup please.

Sesame Bun
Enriched Wheat Flour (Wheat Flour, Malted Barley Flour, Niacin, Reduced Iron, Thiamin Mononitrate,
Riboflavin, Folic Acid), Water, High Fructose Corn Syrup, Soybean Oil, Salt, Wheat Gluten, Nonfat
Milk, Yeast, Malt Powder, Sodium Stearoyl Lactylate, Azodicarbonamide, Monoglycerides, Ammonium
Chloride, Calcium Propionate, Corn Starch, Calcium Sulfate, Calcium Peroxide, Sesame Seeds.

Roast Beef
Trimmed Boneless Beef Chunks (Minimum 70%) Combined With Chopped Beef For a Maximum of
12% Fat. Contains up to 9.0% of a Self-Basting Solution of Water, Salt, Sodium Phosphate.

Horsey Sauce
Soybean Oil, Water, High Fructose Corn Syrup, Distilled Vinegar, Corn Syrup, Egg Yolks, Modified
Food Starch, Salt, Spices, Horseradish Powder, Sodium Benzoate (Preservative), Artificial Flavor,
Calcium Disodium EDTA.

Au Jus (Prepared)
Maltodextrin, Modified Food Starch, Partially Hydrogenated Soybean Oil, Salt, Sugar Hydrolyzed Plant
Proteins (Corn Gluten, Soy Protein, and Wheat Gluten), Beef Flavor Extract (Beef Stock, Yeast Extract,
Lactic Acid Powder [Lactic Acid, Calcium lactate], Sodium Phosphate, Caramel Color, Disodium
Inosinate and Disodium Guanylate), Beef Bone Fat (With TBHQ and Citric Acid for Stability), Roast
Beef Flavor (Yeast Extract, Soy Sauce [Soybeans, Wheat, Salt], Partially Hydrogenated Soybean and
Cottonseed Oil, Dextrose), Onion Powder, Caramel Color (With Sulfites), and Less Than 2% of Beef
Stock, Beef Extract, Milkfat, Black Pepper, Garlic Powder, Yeast Extract, Natural Flavor, Mono- and
Di-Glycerides, Disodium Inosinate and Disodium Guanylate, DATEM, Sodium Phosphate, Lactic Acid,
Silicon Dioxide.

Homestyle Fries
Potatoes, Partially Hydrogenated Vegetable Shortening (Soybean Oil and/or Canola Oil), Modified Food
Starch, Rice Flour, Dextrin, Salt, Leavening (Disodium Dihydrogen Pyrophosphate, Sodium
Bicarbonate), Dextrose, Xanthan Gum.


Wisconsin Cheese Soup
Water, Dried Whey, Celery, American Cheese (Cultured Milk, Salt,
Enzymes), Vegetable Shortening (Partially Hydrogenated Soybean and
Cottonseed Oils, Mono- and Diglycerides, Polysorbate 60), Modified Food Starch, Bacon fat. Contains
2% or less of Enriched Flour (Wheat Flour,Niacin, Reduced Iron, Thiamine Mononitrate, Riboflavin,
Folic Acid, Green Peppers, Salt, Imitation Bacon Bits, (Soy Flour, Partially
Hydrogenated Soybean Oil, Salt, Dried Yeast, Natural and Artificial
Flavors, Caramel Color, Yeast Extract, Red 3), Rehydrated Onions,
Pasteurized Process Cheese Spread (Cheddar Cheese [Milk, Cheese
Culture, Salt, Enzymes], Skim Milk, Sodium Phosphate, Whey, Milkfat,
Salt, Sodium Alginate, Sorbic Acid [Preservative], Apocarotenal
[Color]), Soy Lecithin, Mechanically Separated Chicken, Cheddar Cheese
(Cultured Milk, Salt, Enzymes), Cream, Sugar, Artificial Bacon
Flavoring (Lactic Acid, Natural Smoke Flavor, Hydrolyzed Vegetable
Proteins [Corn and Wheat Gluten, Soy], Salt, Natural Flavor, Thiamine
Hdrochloride, Acetic Acid, Extractives of Coffee, Artificial Flavor,
Caramel Color), Yeast Extract, Sodium Stearoyl Lactylate, Spice, Lactic Acid, Disodium Inosinate and
Disodium Guanylate, Natural Smoke
Flavoring, Natural Flavors, Annatto (Color), Dehydrated Parsley,
Garlic, Disodium Phosphate, Yellow 5 and 6, Turmeric (Color and
Flavoring), Fish Gelatin, Canthaxanthin. (J)

That'll be two billion dollars please



Drat! That replacement for celery eludes me!

I just hope the Wendy's franchisees get together NOW and form a franchisees association to shake down Nelson Pelz the minute he tries to screw them.

quote:

Originally posted by Rick F.

quote:

Originally posted by Ort. Carlton.
... it seems that every time I'm forced into chain-(tr)eatment...

"Sticks and stones may break my bones, but whips and chains excite me!"

Dearfolk,
You're now looking at a broken man.
Dealt A Crushing Blow, Ort. Carlton in Too-Hilly-To-Be-Rolled-Flat Athens, Georgia.

What's a, "Wendy's"? Or for that matter, what's an, "Arby's"?

What you don't know,in this case, won't hurt you, or make you sick!!

quote:

Originally posted by uncledaveyo

Oh no! Now Wendy's is going to suck! Oh wait, it does already.

Sure its not Wendy swallows Arby...makes more sense.

quote:

Originally posted by MilwFoodlovers

Let's see, I'll have a roast beast sandwich, give me a couple of sauces, some homestyle fries and some Wisconsin cheese soup please.

Great post. You know the Feds or some states (I forget who) are trying to get signs on menu boards showing what you posted.

I can't image ordering after reading those ingredients unless I had just driven for 6 hours and there was nothing else on the horizon.

Baconator with horsey sauce?