Arby's Could Be for Sale

In an attempt to drive shareholder value, according to a company release, Wendy's/Arby's Group, Inc. (NYSE:WEN), is exploring strategic alternatives for Arby's Restaurant Group, Inc., including a sale of the brand. A quick-service sandwich chain, Arby's operates nearly 3,700 restaurants. In contrast, Wendy's operates 6,500 restaurants in more than 20 companies.

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The news comes as Arby's posted a 3.1 percent increase in same store sales for its 2010 fourth quarter. "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," said Nelson Peltz, chairman of Wendy's/Arby's Group.

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An iconic part of the United States' restaurant community, Arby's is known for its freshly sliced roast beef sandwiches. In recent years the restaurant chain has continued to update its menu, including the addition of its Market Fresh deli-style sandwiches, toasted subs and salads in an attempt to satisfy customers' changing tastes.
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