COLUMBUS, Ohio - The owner of Arby's said Thursday it is buying Wendy's International Inc. in an all-stock deal worth $2.34 billion that comes after the burger chain's board rejected at least two earlier offers by the company.
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Triarc Companies Inc., which is owned by billionaire investor Nelson Peltz, will pay about $26.78 per share for the company, which has about 87 million shares outstanding. The price is a premium of 6 percent from the company's closing price of $25.32 Wednesday.
Pam Thomas Farber, 53, daughter of Wendy's founder Dave Thomas, said the family was devastated by the news.
"It's a very sad day for Wendy's, and our family. We just didn't think this would be the outcome," she said.
If her father were alive to hear news of the buyout, "he would not be amused," Farber said.
Wendy's deferred comment to Triarc, which said it would discuss the deal later Thursday.
Under the terms of the deal, shareholders at Wendy's, the nation's No. 3 hamburger chain, will receive 4.25 shares of Triarc Class A stock for each share of Wendy's stock they own.
Atlanta-based Triarc said its shareholders will have to approve a charter amendment in which each share of its Class B stock will be converted into Class A stock.
Triarc said it will also change its name to include the Wendy's name.
The Wendy's board has been studying strategic alternatives since early last year. Sales have slid in struggling economy that has hurt many restaurant chains.
Wendy's shares fell 32 cents to $25 in electronic premarket trading.
Farber said the family had a supported an alternate bid led by Wendy's franchisee David Karam, president of Cedar Enterprises Inc.
"We knew what Dave Karam's commitment was to Wendy's, his family's commitment — just as ours. His dad was a very good friend of our dad's and was one of the very first franchisees, so there's a lot of history."
Wendy's also reported first quarter earnings fell 72 percent in part because of expenses tied to a board committee's search for alternatives that would boost the company's shares.
Wendy's said Thursday that its profits totaled $4.1 million, or 5 cents, a share for the quarter ended March 30 compared with a profit of $14.7 million, or 15 cents a share, a year ago. Revenue was down slightly to $513 million from $522 million a year ago.
WHAT THIS MEANS
On the one hand, Wendy's is going to have widely different menus and prices from city to city. And it will be excellent in some areas and suck balls in others. Also look for them to start carrying RC Cola, at least in some cities. Seriously, Arby's is the most inconsistent fast food chain in the world.
On the other hand, Sleazer now has an opening for all sorts of jokes about Wendy's beef drapes.
On the one hand, Wendy's is going to have widely different menus and prices from city to city. And it will be excellent in some areas and suck balls in others. Also look for them to start carrying RC Cola, at least in some cities. Seriously, Arby's is the most inconsistent fast food chain in the world.
I didn't catch making this up earlier. Newsbot pretty much nailed this one. It's a great fast food joint in Charlotte, an incredibly mediocre dive (but with great sub sandwiches) in Roanoke, and a fucking overpriced gourmet fast food chain in Richmond. Seriously, they have rotisserrie chicken and full-on restaurant seating there, and they had $5 milkshakes long before Carl's and Jack started doing that.
Arby's is totally different everywhere. It's strange that they're actually owned by a company big enough to buy out fucking Wendy's.
Can't say I don't blame Wendy's at all for their woes. What the fuck was up with those "idiots in red wigs kicking trees and jumping into pits while eating burgers that sing Air Supply" commercials?
*--For behavior unbecoming anyone, perpetrated in real time over an extended--AH, FUCK IT! MORE MALIBU, BITCHES!!
anarky wrote:Can't say I don't blame Wendy's at all for their woes. What the fuck was up with those "idiots in red wigs kicking trees and jumping into pits while eating burgers that sing Air Supply" commercials?
the red wig thing was trying to make their own "the king" type of mascot. with the halloween appeal that "the king" generated, i think they were going for that. i guess it didn't work. i thought it was rather funny, but they had too many different campaigns going at the same time. that just confuses people, wendy!!!
anarky wrote:They should've had Zombie Dave as their mascot.
"Man, this Double with Cheese is awesome!"
"It's almost as good as this baked potato! Great work, Dave!"
"Rrrrurrrrrr.... brains...."
FUCK YEAH!!! that would've rocked. though i'm not sure if it would've actually sold anything. "rotting undead flesh" doesn't necessarily equate to "sumptuous meal" in the minds of most. of course, going with my theory that advertisers have lost the notion that you should sell the product as opposed to go for the cheapest gag possible regardless of whether or not it actually points out an intrinsic flaw in the product, they probably will be doing that campaign in the near future.
When they first started staying open late, and had the motto "Wendy's rules the night," a friend and I came up with this entire ad campaign for them about how they ruled the night because "Wendy's is the restaurant of EVIL!"
I don't recall too many specifics, but Dave would be dressed as a Herman Munsters-ish vampire, and all the voiceovers would be Christopher Guest (the same voice he used for the six-fingered man).
And they'd be shit like, "Our burgers start with one half pound of pulverized flesh from a freshly-killed cow...." And, "We now accept cash, ATM, and firstborn children."
Oh, and there'd be a commercial where someone's ordering a combo, and the cashier says, "Would you like to super-size that for just YOUR MORTAL SOUL?"
*--For behavior unbecoming anyone, perpetrated in real time over an extended--AH, FUCK IT! MORE MALIBU, BITCHES!!
Newsbot pretty much nailed this one. It's a great fast food joint in Charlotte, an incredibly mediocre dive (but with great sub sandwiches) in Roanoke, and a fucking overpriced gourmet fast food chain in Richmond. Seriously, they have rotisserrie chicken and full-on restaurant seating there, and they had $5 milkshakes long before Carl's and Jack started doing that.