Chain Restaurants

Arby's to buy Wendy's?

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Chain Restaurants 2

Arby's to buy Wendy's?

KevinB | Jun 2, 2008 06:29 PM

According to Bill Ackman, of Pershing Square Capital, Wendy's has agreed to be taken over by Triarc Corporation, the company that controls Arby's restaurants.

Given that Triarc has lost over $50 million its latest quarter (on sales of $1.26 billion), and for the previous year had a profit margin of 3%, and Wendy's had a profit margin of 3% in its latest quarter, in an industry segment where the average is over 8%, and McD's enjoys a margin over 10% despite significantly higher advertising costs, is this a case of two losers getting together? Many people have suggested that Wendy's quality has gone down since Dave Thomas passed away; is the current management throwing in the towel?

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