Skip to comments.Update: Wendy's/Arby's Group to sell Arby's to Atlanta-based Roark Capital Group
Posted on 06/13/2011 11:24:54 AM PDT by Red Badger
Atlanta-based Wendy's/Arby's Group agreed to sell most of its Arby's division to a buyer formed by Roark Capital Group, an Atlanta-based private equity firm with $1.5 billion of equity capital under management. Roark's portfolio includes Moe's Southwest Grill, Schlotzsky's, Wingstop and other restaurant companies.
The deal, valued at $430 million, will break up a fast-food company that was formed less than three years ago and arguably never reached its full potential. About 40 jobs at the Wendy's/Arby's headquarters will be eliminated, but more than 300 people will either join Roark or stay with the Wendy's brand in Atlanta. The headquarters of the Wendy's brand will remain in Ohio.
Wendy's/Arby's had previously said it planned to explore alternatives, including a sale of Arby's, to allow it to focus its resources on the larger Wendy's brand. The parent company wants to update the core menu at Wendy's, modernize restaurants, add breakfast items, build new Wendy's restaurants in the U.S. and expand globally.
Meanwhile, Arby's has posted six months of sales growth at established stores in the United States. Executives say that is an indication that the brand's turnaround is underway, after it was caught with an overpriced menu in a budget-killing recession.
In an interview with The Atlanta Journal-Constitution, Roland Smith, chief executive of Wendy's/Arby's Group, said the company had proved doubters wrong by finding a willing buyer.
(Excerpt) Read more at ajc.com ...
Howard Roark laughed.
Schlotskys? I think someone has a case of the Mondays!
Sometimes I feel like I’m dumber than a hamster. Reference the Simpson’s episode where Lisa was doing a science experiment to show that a hamster was smarter than Bart. The hamster quickly learned not to touch the food due to the resulting shock, while Bart kept trying for the cupcake, getting shocked over and over and over.
How does this relate to me? Every few years I seem to go to an Arby’s thinking “Maybe I won’t get sick this time.”
Will all of the Arby’s and Schlotsky’s stores be converted to neoclassical architecture?
I’ve never had a problem at Arby’s. Go there frequently. Maybe it’s your particular Arby’s that is unclean or maybe mine is exceptional.
Or it could be the ton of Horsey Sauce I use that kills all bacteria.............................
Ah those were days!
I had their roast beef with cheddar once long ago. The cheese looked like plastic. I couldn't finish it. Never been a big Arby's fan since.
You must have bought a lot of fries.....................
Arby's went started going down hill a couple of decades ago when they started expanding their menu into an "all things to all people" menu, and lost their focus on sliced roast beef sandwiches.
A roast beef sandwich, potato cakes, and Jamoca shake was once their core menu item, and pretty much all they needed.
The last time I went into an Arbys and ordered a roast beef sandwich, it was like "wtf is this?"
They need to get back to basics. Throw out all the fried chicken and specialty sandwiches and get back to sliced roast beef. Add sliced turky or chicken, and maybe sliced ham, and build the menu from there.
"You want sliced beef, turkey, or ham? What side item would you like: potato cakes or curly fries? Would you like a coke or milkshake?" Do just a few things and do them well.
***Every few years I seem to go to an Arbys thinking Maybe I wont get sick this time.***
Ah for the days when there was Roy Rogers’ Roast Beef and Minnie Pearl’s Fried Chicken!
Meanwhile I like Arby’s.
***and Jamoca shake ***
OH! A JAMOCA SHAKE! I must go get one now!
I hate fast food anyway. Their menus are just aggravating. Combo1....combo 15..... supersized?..........
I'll say it's overpriced. I'm cheap, but Arby's is a once a year visit for me except for their coupon deals (which can be good value).
for those who cannot follow this without a scorecard:
-Dave Thomas passed away in 2002
-The new management ran Wendys Corp into the ground
within just a few years
- Wendys filed for bankruptcy and was bought by Arbys
- Arbys nursed them back to health and quickly found Wendys to be a much more profitable enterprise than Arbys
- So Arbys is selling off Arbys and becoming Wendys. Wendys will be the company formerly known as Arbys while Arbys is taken over by this group from Atlanta.
Our city got an Arby’s six months ago and it just closed. Opening 200 feet from a Sonic wasn’t a good plan.
LOL! I was thinking about Roy's roast beef and chicken too! Didn't Marriot close them down or sell them and then they closed? I loved their chicken.