Wendy’s sells back stake in Inspire Brands for $450mn

By Olivia Minnock
US fast food chain Wendy’s has agreed to sell its ownership interest in Inspire Brands, Inc back to the parent company for $450mn. Wendy’s will le...

US fast food chain Wendy’s has agreed to sell its ownership interest in Inspire Brands, Inc back to the parent company for $450mn.

Wendy’s will let go of its 12.3% stake in Inspire, which owns 4,600 restaurant brands including Arby’s, Buffalo Wil Wings, and R Taco for a 38% premium based on the firm’s previous evaluation of the investment.

See also:

Yum brands beats analyst estimates in second quarter

Tim Horton’s to conquer Chinese coffee market with 1,500 new restaurants

Read the latest issue of Food, Drink and Franchising magazine!

Nelson Peltz, Chairman of the Board of Directors, said: “The sale of our stake in Inspire Brands for over $450mn is a great return on investment for our shareholders.”

President and CEO of Wendy’s, Todd Pengor, added: “We have benefitted from and enjoyed our partnership with Inspire, and we wish Paul Brown and the team continued success in the future. The opportunity to monetise our investment in Inspire Brands will allow us to invest in future growth for the Wendy’s brand and company, which is our top priority.

“The flexibility provided by the sale proceeds and the additional share repurchase authorisation through 2019 will also allow us to continue to create value for our shareholders.”

Wendy’s, which has been in operation for almost 40 years, currently operates across 6,537 locations in North America and beyond, including company-owned premises and franchises.

 

 

 

Share

Featured Articles

Nestlé 'Meeting Sustainability Targets on Nescafé Coffee'

Nestlé is meeting targets on sustainably-sourced Nescafé coffee, & has donated 21mn plants as part of global ESG initiatives, a company report claims

Coffee Prices Soar as Extreme Weather Hits Brazil & Vietnam

Global coffee supplies hit by high rainfall in Brazil and a heatwave in Vietnam, and Smart Cube analyst Kanica Goel says situation unlikely to improve soon

Guinness & Carlsberg Back Drought Resistant Grain for Beer

Guinness and Carlsberg collaborate with Brooklyn Brewery on brewing beers using drought-resistant grain that requires no irrigation

Tyson Foods Shares Plummet in Face of Costs & Inflation

Food

Nestlé ESG Programme 'Boosting Cocoa Farmers' Income'

Sustainability

Mars Wrigley's Procurement-Sustainability 'Balancing act'

Sustainability