Wendy’s (NYSE:WEN) completed its divestiture of Arby’s to Roark Capital Group. The press release says it was according to previously announced terms and conditions. Wendy’s retains some 18% of Arby’s so it gets a ride up if as and when something good happens to Arby’s. The position will probably be diluted as any problem child spin-off usually needs capital immediately if no sooner.
Roland Smith, President and Chief Executive Officer of The Wendy’s Company, said, “The sale of Arby’s® provides substantial benefits to our stockholders…” He also continued by saying “…With the transaction now behind us, we look forward to devoting our full attention and resources toward realizing Wendy’s® exciting growth prospects…”
The stock is at its 52 week high and you have a blood sweat and tears scenario in the near term. Investors will be watching carefully as you execute. The quick service is highly competitive. Wendy’s has a lot to prove and it needs to be soon, very soon.
Disclosure: George Gutowski writes from a caveat emptor perspective. I hold no positions in stocks mentioned in this post. I have no plans to initiate new positions within the next 72 hours.