In two days, the fast food landscape has radically changed. Yesterday, KFC owner Yum Brands announced they were looking to divest themselves of their two lowest-performing units by selling the seafood chain Long John Silver’s and the burgers and dessert joint A&W American Food. That’s sparked a selling spree among fast food outlets, as today Wendy’s has announced plans to sell off its ownership of Arby’s. It’s a value meal of corporate sell-offs!
Given the shake-ups in the fast food lineup and the reticence for Arby’s to start discounting products when everyone else did during the recession, Arby’s in-sales stores have taken a huge hit and have been dragging down the profits of the combined Wendy’s/Arby’s Group. Wendy’s/Arby’s chairman Nelson Peltz, whose Trian Fund Management LP owns 24% of the restaurant chain, is admitting defeat and dumping Arby’s, which Wendy’s merged with in 2008. Maybe the recently privatized Burger King is interested in picking up some value-priced roast beef and seafood?
“It became clear that by removing Arby’s, the true growth story of Wendy’s can be represented,” said an insider of the deal. Wendy’s is seen as the property with the greatest international growth potential, so Wendy’s is getting the board’s full attention.
Tags: Wendy’s, Arby’s, Long John Silver’s, A&W, Yum Brands, Wendy’s looking to sell Arby’s, Yum Brands to sell Long John Silver’s and A&W, A&W American Food, fast food chains for sale, Nelson Peltz, Trian Fund Management LP
