The $430 million sale of Arby’s Restaurant Group Inc. to Roark Capital could be qualified as addition by subtraction for both the 3,600-unit Arby’s and its former sister chain, the 6,600-unit Wendy’s.
Restaurant securities analysts noted that the terms of the brands’ separation — with Arby’s leaving parent company Wendy’s/Arby’s Group Inc., and Wendy’s remaining — represented a fair value for Arby’s and will allow both chains to go their own ways with fresh infusions of cash.
Atlanta-based Wendy’s/Arby’s Group now can focus solely on Wendy’s growth initiatives, a goal that company executives said motivated the January announcement that
Wendy’s/Arby’s Group would seek strategic alternatives for Arby’s.
Areas of focus for Wendy’s will include its test of a new breakfast platform, currently in six markets, with a goal of being in 1,000 stores by year-end; expanding internationally to as many as 8,000 locations; and adding as many as 1,000 US restaurants over the next few years, while remodeling many units along the way.