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Wendy’s Going Solo.

January 20, 2011

Arby's and Wendy'sYou know how every great group always has an obvious leader who later goes solo and out-shines the others? Like Phil Collins of Genesis, Boy George of Culture Club, Bobby Brown of New Edition, and the most popular Nick Jonas of The Jonas Brothers. Well, the same goes for Arby’s and Wendy’s.

Arby’s parent, Triarc Companies Inc., who back in 2008 actually owned quite a bit of Wendy’s stock, saw potential in Wendy’s and pushed them to make some adjustments to their portfolio. First, it was spinning off the Tim Hortons coffee and doughnut chain and then they pressured them to sell its money-losing Baja Fresh Mexican Grill. When all had been done, Triarc bought the remaining shares of the company. Triarc then married Wendy’s and Arby’s, forming Wendy’s/Arby’s Group. Along the way, with a little help from the real Wendy Thomas appearing in commercial spots and the introduction of Natural Cut Fries, Wendy’s unsurprisingly outperformed Arby’s and I guess Triarc said, “I’m no longer thinking Arby’s!”

Nelson Peltz, chairman of Wendy’s/Arby’s Group said in a QSR Magazine interview, “We believe the way to maximize shareholder value is to focus all of our management and financial resources on continuing to build the Wendy’s brand. Arby’s is a good business, and we are making progress improving its performance, as evidenced by the 3.1 percent increase in company-operated same-store sales in the fourth quarter of 2010. However, despite Arby’s positive momentum, the reality is that the Wendy’s brand, given its relative size and scope, is the key driver of shareholder return, and we believe we should focus on the execution of the compelling growth opportunities at Wendy’s.”

The company is planning to issue a news release after the market closes on January 26 followed by hosting an Investor Day on January 27 in New York City. The Investor Day presentations can be seen via webcast live from the investor relations page of the company’s website.

Hopefully Arby’s gets picked up and becomes a hit. Sort of like JC Chasez only better.

One Comment leave one →
  1. Thaddeus George permalink
    January 30, 2011 4:37 PM

    It will be interesting to see how this move affects Wendy’s logo and brand development from here on out. Restaurant branding is essential, especially when trying to rebrand oneself. I was recently in the process have rebranding my small restaurant in Sydney with the help of a great graphic design team, DPM Creative Group, and the result was phenomenal. If you are able to pull of the Re-brand then the results can be great, if you fail however, your business may be devastated.

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