The owner of Wendy's (
to sell Arby's so that it can devote more attention and resources
to upgrading the hamburger chain and challenging two rivals.
Arby's, an Atlanta-based roast beef sandwich shop considered the
U.S.' second-largest quick service chain, was acquired by Roark
Capital Group for approximately $430 million. Roark, also of
Atlanta, is a private equity firm with a focus on franchises and
"This transaction provides substantial value to our stockholders,
as it is expected to be accretive to earnings, deleverage the
balance sheet and allow us to devote our full attention and
resources on the exciting growth opportunities we have at Wendy's,"
according to Roland Smith, Wendy's/Arby's Group president and chief
executive officer. "These opportunities include revitalization of
our core menu, expanding breakfast, modernizing our facilities,
building new restaurants in the United States and pursuing global
The sale marks the achievement of a well-planned effort as the
ownership group has long sought to reduce its involvement in
Wendy's is aiming to better compete with McDonald's (MCD) and
When the deal closes, Wendy's will receive about $130 million in
cash while also holding on to 18.5 percent of the roast beef
chain's common stock interest, which is worth about $30 million.
Roark will take on about $190 million of the debt held
by Arby's, much of which revolves around obligations germane
to capital lease and sale lease back.