Wendy's is now thinking Arby's

[Raph's Girl]

http://www.tennessean.com/apps/pbcs.dll/article?AID=/20080425/BUSINESS01/804250384

After at least two rejections, billionaire Nelson Peltz has finally succeeded in landing Wendy's in a $2.3 billion deal that would add the chain known for its square burger and chocolate Frosty dessert to his ownership of Arby's and its roast beef sandwiches.

Now, the investor known for agitating corporations to boost their stock price has to figure out how to make both profitable while the economy slumps and more Americans are saving money on food and fuel by staying home to eat.
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Atlanta-based Triarc Companies Inc., owned by 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.

Thomas' daughter Pam Thomas Farber 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," said Farber, 53.

If her father were alive to hear news of the buyout, "he would not be amused," she said.

Triarc will pay about $26.78 per share for the company, which has about 87 million shares outstanding. Wendy's shares rose 4 percent to $26.39 in trading Thursday. They traded as high as $42.22 last summer, not long after Wendy's announced the formation of a special committee to boost its stock price.

The offer is well below the $37 to $41 per share that Peltz said last summer that he was ready to offer for Wendy's.

Under the terms of the deal, expected to close in the second half of the year, Wendy's shareholders will receive 4.25 shares of Triarc Class A stock for each share of Wendy's stock. 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.
Wendy's has struggled

Peltz has pushed for change at Wendy's — including the spinoff of the Tim Hortons coffee-and-doughnut chain and cutting corporate expenses — since 2005 to increase the company's stock price. His Trian Fund and his allies own 9.8 percent of Wendy's stock.

It's a similar tactic Peltz has used at other companies where Trian has become a significant investor, such as Cadbury Schweppes PLC and H.J. Heinz Co. Trian also owns shares of Tiffany & Co. and the Cheesecake Factory Inc., according to regulatory filings.

The deal comes as Wendy's struggles with declining profits and weak sales compared with rivals McDonald's Corp. and Burger King Holdings Inc.

Wendy's said Thursday that its first quarter profit was down 72 percent to $4.1 million, or 5 cents a share, in part because of expenses tied to the work of a special board committee that has been studying ways to boost the company's stock. Revenue fell to $513 million from $522 million a year ago.

Sales at company-owned stores opened at least a year, considered a key indicator of a retailer's strength, fell 1.6 percent in the quarter and 0.1 percent at U.S. franchise restaurants. Wendy's also has failed to connect with consumers in several advertising campaigns that have been tried since Thomas' death in 2002 and it has had limited success in adding new products and with its breakfast menu. Thomas, always wearing a white short-sleeved shirt and red tie, became a household face when he began pitching his burgers and fries in television commercials in 1989.

Still, even with a slumping economy in which other restaurant chains have seen sales decline recently, there is value, analysts say.

"We've always felt Wendy's had a decent chance of a turnaround in its business," said John Owens, an investment analyst with Morningstar, citing its new chicken wrap sandwich and the addition of breakfast at many restaurants.

Improved cost controls over food, labor and other expenses should generate $100 million a year in operating profits over time, Triarc said in the statement announcing the deal.

Eliminating duplicate corporate functions and streamlining support services are expected to save $60 million, said Triarc, which operates 3,700 Arby's restaurants.

Triarc also said expansions for both brands are planned for the U.S. and overseas and that the company will look at a dual-concept unit in high-cost real estate markets. Triarc said it will also change its name to include the Wendy's name.

Wendy's deferred comment to Triac, which had nothing further to say right away.

[Buslady]

Wendy's has been going down hill since Dave Thomas died. They dont use "Biggie" sizes anymore, they're touting "never frozen" beef trying to compete with In N Out- which there is to competition when it comes to a CA institution like INO...around here you just don't think, you go to INO.
:P

They can't get an order right, they forgot my kiddo's burger few nights ago. We avoid it now. Their beef is actually precooked and recooked when you order it to make it appear fresh. Their fries are WAY too salty. Their salads though are pretty good and frosties, about time they got vanilla.

[Warhorse]

Wendy's has been going down hill since Dave Thomas died. They dont use "Biggie" sizes anymore, they're touting "never frozen" beef trying to compete with In N Out- which there is to competition when it comes to a CA institution like INO...around here you just don't think, you go to INO.
:P

They can't get an order right, they forgot my kiddo's burger few nights ago. We avoid it now. Their beef is actually precooked and recooked when you order it to make it appear fresh. Their fries are WAY too salty. Their salads though are pretty good and frosties, about time they got vanilla.

Down here in Florida, they have been using some sort of "healthy" oil to cook their foods, and now all of their fried foods taste bad, especially the fries.

Maybe Arbys will add some flavor back to their food. Arby's I always thought had pretty good sandwiches. Especially the french dip! Yum!

[VaughnMichael]

Down here in Florida, they have been using some sort of "healthy" oil to cook their foods, and now all of their fried foods taste bad, especially the fries.

Maybe Arbys will add some flavor back to their food. Arby's I always thought had pretty good sandwiches. Especially the french dip! Yum!
I was at a McDonalds that did that with their fries the other night and they where just about the nastiest thing I've ever had!:dead:

[Warhorse]

I was at a McDonalds that did that with their fries the other night and they where just about the nastiest thing I've ever had!:dead:

That's horrible to hear. Especially about America's favorite fries! Wendy's is one thing, but McDonalds were always my favorite fries, while Burger King had the better burgers.

[Raph's Girl]

Arby's sandwiches are NUUUMO! Whenever Im thinking Arby's I just take a short jaunt around the block and bam Im there :D

There's a Wendy's not far but I've never had any good service from any Wendy's in any state so my entire family has basically been boycotting em for years.

[Roseangelo]

I used to go to Wendy's religiously for the cheese baked potatoes. But then they took the cheese baked potato off the menu and I've been there maybe once or twice since.

Well, there's one connected to a gas station I stop at when I drive down to LA. I'll sometimes stop in there for a Frosty, but that's it.

[愛]

I live for Wendy's. I eat there at least three times a week. Peanut knows what I'm talking about!

As for bad service and bad food, I dunno what kind of ass-backwards town you guys live in, but I'm always satisfied...and I go to the restaurants in Philly. The employees give you dirty looks just when you order, let alone complain about something. As a man who is hungry and doesn't get all wahhhmbulence about getting an order wrong, I really don't care, as long as I get food.

[Drtooth]

Wendy's has been going down hill since Dave Thomas died. They dont use "Biggie" sizes anymore, they're touting "never frozen" beef trying to compete with In N Out- which there is to competition when it comes to a CA institution like INO...around here you just don't think, you go to INO.

And

Down here in Florida, they have been using some sort of "healthy" oil to cook their foods, and now all of their fried foods taste bad, especially the fries.



Yeah, that's not so mcuh Wendy's fault as much as the entire "obesity epidemic" stuff. So, to slap the wrists of people who are seriously addicted to food, they have to punch the casual Fast Food eater in the mush. Getting rid of Biggie sizing? That's something that happened after McD's got rid of theirs. Trans-fat Free oil? Ditto. When a bunch of towns decided to ban it, they had no choice.

As for the Merger.... well, I hate mergers. Can anyone say, less competition? As long as they don't change the name (which I doubt they would), things should be alright. The food may dip lower into quality, though.

[CudleyCowlick]

Yeah... I loved the Wendy's back home in Vermont, and I gladly drove like 45 minutes with a car full of my cronies to get there, but the one near me here in NY has got to be the worst one ever. I went in there for a Spicy Baconator and it was like they literally just squished it all into a ball and wrapped it up. The cheese was not even on the burger, just stuck to the wrapper. Plus, the fries were cold and soggy and the worst part... I waited like 10 minutes for it! Two more trips after that, hoping I would get a better meal proved fruitless.

And Arby's has always tasted like swamp a$$.

So to sum it up... I now eat only at Burger King when I want greasy junk food.

[Mr. Snackpants]

Wendy's has been going down hill since Dave Thomas died. They dont use "Biggie" sizes anymore, they're touting "never frozen" beef trying to compete with In N Out- which there is to competition when it comes to a CA institution like INO...around here you just don't think, you go to INO.

They can't get an order right, they forgot my kiddo's burger few nights ago. We avoid it now. Their beef is actually precooked and recooked when you order it to make it appear fresh. Their fries are WAY too salty. Their salads though are pretty good and frosties, about time they got vanilla.

1) Who the hell needs "Biggie Size". No one needs a pound of fries.

2) So your Wendy's forgot a burger...that automatically means Wendy's is a terrible place to eat? You get bad service at any fast food place because you have brain dead people behind the counter.

Wendy's is f*cking amazing. They have a great variety, some even semi-healthy. Their food is much better than McDonalds and BK, the problem is they just are as wide spread as those two and they're a bit more expensive. But what do I know, I only eat out once every couple weeks. You people act like you eat out every other day :dead:.

[Guitar_Raph]

Not only Dave Thomas is turning over his grave, but also the legendary Clara Peller (Where's the beef?).

Last time I went to Wendy's, I was surprised that they now have expanded their Frosties to vanilla as well as topping them with either M&Ms or Oreos.

[NightwatchersOnlygirl]

Wendy's was in the UK as well

[Buslady]

First off i don't mean huge proportions of food when i say "biggie" sizes. They used to use the size names "Biggie" and "Great Biggie" for their size names instead of "Small, Medium and Large"

And no they've forgotten and screwed orders many times over, and many different stores. They are pretty dim. I ask for a Classic Bacon Cheeseburger they think I want the new Baconator.

Yes i know others are pretty bad but when they check the bag and STILL screw up the order? Come on.

I never said their food was crap, I like some of it. But for the past 15 years or so, it's quality is up & down. But it is like that with others too. I know. I'ts mostly service...
they do precook their beef and fry it up a 2nd time to make it appear fresh.

There is another element though, I'm not bashing but this is a fact - most of our fast food places are manned by poorly speaking Hispanic folks - this leads to poor service. They're hard to understand, and you wonder if they understand you as you order.

Yes I do eat out often, I'm on the road alot more than most folks are. Gotta eat when I can.
Just about all the burger fast food joints are pure crap using frozen food, crappy help who can't even keep a lobby clean and the dining room worse. They tout "healthy healthy" crap..yea whatever. Those lettuce wrapped burgers? Not their idea! They stole it from INO's protein burger! INO invented this style.

Only one place has never ever screwed an order up, In N Out.

[Raph's Girl]

Wendy's screwing up orders is quit a common occurance in Utah and Washington State.

I just go to Arby's or Jack in the Box. Both are just around the corner (so's Burger King and McDonald's). So if I ever need any fast food...well Im surrounded (there's also a Taco Bell/Pizza Hut just up the street).

There's a Wendy's but they hardly ever get any service. Mostly cuz of the competition from the dozen pizza places around here. Now if Wendy's decided to sell pizza like Quizno's and Subway...then they'd probably get people. *lol*

And incidentally there are NO In N Out burger joints in the area. Never even heard of the place.

But if you want pizza then come on over. You name the place we probably got it. There's a dozen pizza places within 3 miles of me. *lol*

[Leonardo Mystic]

There are three Wendy's within a four mile radius of where I live, and there's at least a couple of more around the city in other places. I go to eat there about every other week, and I've rarely had a problem with wrong orders or missing food. The only complaint I have is sometimes they put too much salt on the fries, but they are almost always hot and fresh.

I live in Central-West Georgia.

[Peanut]

Wendy's is f*cking amazing and anyone who says otherwise is a filthy communist!

[Jo Dawn]

I used to love Wendy's. Unfortunately, I get sick every time I eat there. So I had to stop. I don't know what preservative or whatever they use...

[GK Punk]

One of my friends used to Manage a Wendy's, so I got to eat there for free all the time. And She'd randomly bring me food from there.

[Drtooth]

Wendy's screwing up orders is quit a common occurance in Utah and Washington State.

Do the words "minimum wage" mean anything to you?

I still love the place, but I'm disappointed that they don't enforce their 99 cent value menu in every location. All the ones near me are now 1.19- 1.50 value menus now. I thought the appeal of Fast Food was that every place had a set price. Mall locations not included. they can charge whatever they bloody well feel like there. Not just Wendy's, but McD's and BK's always have had that problem. Wendy's just stared having that recently.

I hope this merger, if anything, keeps the prices from being so widespread and different from location to location.

[Buslady]

Wendy's is f*cking amazing and anyone who says otherwise is a filthy communist!

I hope you enjoy your refried burgers.

:lol:

[Deathknight]

Wendy's is awesome though it has gone downhill in the past year. Stuff isn't as good anymore. Still, I'm sad to hear it was bought out like that.

[Warhorse]

Actually, when I think of it, I think Wendy's is on the brink of bankrupsy. I've noticed many of the resturaunts here have closed up. They aren't being taken over by anyone else, they are just plain abandoned.

And there are only a couple of Arby's in my city, and my city is pretty big. The resturaunt that seems to be doing real good is Taco Bell, along with the two big burger chains, Micky Dee's and The King.

[Drtooth]

Actually, when I think of it, I think Wendy's is on the brink of bankrupsy. I've noticed many of the resturaunts here have closed up. They aren't being taken over by anyone else, they are just plain abandoned.

Strangely enough, the only fast food chains I really see closing up stores around here are BK's. And one wound up re-opening anyway. But then again, up here, we only get the basics- Wendy's, McD's, BK, Taco bell, KFC, Subway- and a couple others in the Mall. In Massachusettes, we do not have any of these Sonic Burgers, In N Outs, or Jack In the Boxes. Heck, we finally got a Popeye's back a while ago... but I'm NEVER eating there again. We have a sub chain called DiAngello's, and a Pizza Chain called Papa Ginos. But that's basically it. If anything, More Wendy's are popping up around here.

Actually, we did have a brief run in with Long John Silver's for 3 months. Food was okay the first time, but got subsiquently worse every time I went. After about 4 trips, I gave up, and apparently everyone else did too. I guess you can't compete with the hundreds of other places that offer fresh cooked Fried Fish in the area.

[Raph's Girl]

Strangely enough, the only fast food chains I really see closing up stores around here are BK's. And one wound up re-opening anyway. But then again, up here, we only get the basics- Wendy's, McD's, BK, Taco bell, KFC, Subway- and a couple others in the Mall. In Massachusettes, we do not have any of these Sonic Burgers, In N Outs, or Jack In the Boxes. Heck, we finally got a Popeye's back a while ago... but I'm NEVER eating there again. We have a sub chain called DiAngello's, and a Pizza Chain called Papa Ginos. But that's basically it. If anything, More Wendy's are popping up around here.


Within 3 miles of me theres:
Pizza Hut (2 of em)
Taco Bell (which is a combo with one of the Pizza Huts)
Pizza Time
Blimpies
Subway
Wendy's
KFC/A&W
Church's Chicken (which is oddly right next door to KFC/A&W. Just opened a couple months ago.)
Little Caesar's (just got this last summer)
Papa Murphy's
Papa John's
Arby's
McDonald's
Burger King
Jack In the Box
Taco Del Mar (mmm...num! )
Quizno's
Long John Silver's
Panda Express
Garlic Jim's (a local pizza joint. Nummo! )
Herfy's Burgers (a recent aquisition from the East Coast.)
Popeye's

And then there's like 7 Terryaki places, a German Deli, regular ole family restauraunts, and a bunch of bars. *lol*

There's no In N Out, no Sonics (there's 2 in the entire state and they're both in Eastern Washington! ), and probably tons of other places I've never heard of.

[RAM BAM]

I used to love Wendy's. Unfortunately, I get sick every time I eat there. So I had to stop. I don't know what preservative or whatever they use...

I have a similar problem with KFC. I seem to get a upset stomach when I eat there.

With Wendy's I find they sometimes undercook their fries at the one near my office. That's why I opt for a side salad now. My Labatt lump (gut) thanks me.

[Peanut]

I hope you enjoy your refried burgers.

:lol:

I only eat the SCS! No burgers for me. And I wouldn't care if they were refried.

[愛]

SCS FTUW! I also get the Club sometimes. Depends if I wanna die faster or slower!

[Ninjinister]

Frisko Freeze ftw, guys. Other than them, fast food joints can go to hell.

[Buslady]

INO is primarily a West coast place, I think Gag in the Bag is too.
For back east, I liked Steak & Shake....I wasn't dissapointed with them.

Were cutting out fast food now, we decided we're pretty much addicted to life and wanna live.

[Sewer Bull]

I believe neither Wendy's nor Arby's are present in Europe... unless there are some restaurants somewhere in the UK.

Do we lose much?

[Raph's Girl]

I believe neither Wendy's nor Arby's are present in Europe... unless there are some restaurants somewhere in the UK.

There used to be Wendy's in the UK but the last one closed in January. :lol:

But Wendy's is found all over the world (except the UK and Australia).

Arby's however is a North American chain only. They're nummy and slightly better than Subway. :D

[Drtooth]

I have a similar problem with KFC. I seem to get a upset stomach when I eat there.

I have a humongous probroblemo with fast food fried Chicken. Chicken Nuggets and Strips I can handle... but there's just something in there my digestive juices don't like at all. But enough of that.

I will say this- When Boston Chicken (a once just local chain) was bought out by McDonald's, the quality sl-i-i-i-i-pped..... Haven't eaten there in years, actually.

[Tinuvielsdreams]

Wendy's was actually my first after school job when I was 15, my best friend and I were so excited cause we could work shifts together. I mostly took money at the drive through but let me tell you on the sandwich line I made those darn burgers pretty...haha
I don't see them suffering around here too much, it's hard to even get in at lunch sometimes.
I like Wendy's I hope they don't change it too much, if I could still eat there after working there it must be okay

[Ninjinister]

Jack in the Box actually has always made me physically ill, but I'll eat at other fast food joints only if others I'm with are going.

Unless it's the aforementioned FF :D I'd go there anytime.

[Newton Gimmick]

Gay. Not that I hate Arbys, but Dave Thomas made Wendy's it's own thing. It's always been different and now they're gonna start shoving them together, just like Pepsi has done with KFC and Pizza Hut. And the quality will go down the crapper.

[Buslady]

yeah once a decent joint gets bought out and smooshed with the other half dozen fast food joints the quality goes down.

Speakin of chicken, the best chicken IMO is Chik-Fil-A but it's kinda $$. They use peanut oil & pressure cook, but some folks can't take the peanut oil...but they got the best nuggest cos its not chopped & formed but cut pieces of breast meat.

Church's likes to servce green chicken (hubby had it like that once, that was just plain bad)

Popeyes, i'm okay with, the nuggets are pretty decent.

[Type 97 Chi-ha]

Steak and Shake has good stuff. So does Arby's, though I much prefer their non-beef sandwiches. Wendy's was good until after Dave Thomas died, now they've gone way downhill. Burger King is the only fast food place I eat out at when I'm travelling though.

[RAM BAM]

Steak and Shake is awesome! So is Culver's!

[Hannah]

I don't think I've ever eaten anything but the baked potatoes at Wendy's. But those potatoes... they're f*cking delicous.