Wendy's Considers Sale of Chain
Profit Plunged 71% in First Quarter; Directors to Consider 'All' Options
By Kate MacArthur
Published: April 25, 2007
CHICAGO (AdAge.com) -- Wendy's International is considering selling its namesake restaurant chain following a 71% profit decline in the first quarter.
No time frame
On the eve of its annual shareholder meeting, the fast-food chain said a group of independent directors will "investigate all strategic options" for the company, including "revisions to the company's strategic plan, changes to its capital structure, a possible sale, merger or other business combination." The committee will be led by Chairman James V. Pickett.
"A number of stakeholders have offered suggestions about strategies to improve performance and create additional value," Mr. Pickett said. He said there was no specific time frame to complete the review, nor are there constraints to the options under review.
The move comes despite a succession of steps the company has taken to turn around its fortunes. Wendy's has faced shareholder pressure from Nelson Peltz, whose Trian Investments won three board seats. As part of its turnaround plan, Wendy's replaced its CEO, trimmed more than 500 positions, spun off its Tim Hortons doughnut chain and shed the flagging Baja Fresh Mexican Grill. In January, the marketer replaced ad agency McCann Erickson with Publicis Groupe's Saatchi & Saatchi and media sibling MediaVest.
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