Published On: Sun, Aug 19th, 2018

Hamburger fast food chain Wendy’s sells stake in Inspire Brands for $450m

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Restaurant industry news : US-based hamburger fast food chain Wendy’s said that it sold a stake of 12.3% it owned in multi-brand restaurant company Inspire Brands back to Inspire Brands for $450 million.

Inspire Brands, which is majority owned by Roark Capital Group, in turn owns fast food company Arby’s, casual dining restaurant and sports bar franchise Buffalo Wild Wings, and fast food chain R Taco.

Wendy’s has been a minority owner in Inspire Brands until the transaction. Founded in Founded in 1969, Wendy’s along with its franchisees have a workforce of hundreds of thousands of people in over 6,600 restaurants across the world. The company is considered to be among the top hamburger fast food chains globally.

Wendy’s menu mainly features hamburgers, chicken sandwiches, frozen dairy dessert Frosty, French fries and beverages.

Flagship restaurant of hamburger fast food chain Wendy's in Dublin, Ohio
Flagship restaurant of hamburger fast food chain Wendy’s in Dublin, Ohio. Photo courtesy of Nheyob/Wikipedia.org.

Todd Penegor – Wendy’s President and CEO said: “We have benefited from and enjoyed our partnership with Inspire, and we wish Paul Brown and the team continued success in the future.

“The opportunity to monetize 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 authorization through 2019 will also allow us to continue to create value for our shareholders.”

The hamburger fast food chain said that the deal has been approved by its board of directors with the transaction amount representing a 38% premium on its previous valuation of the investment.

Nelson Peltz – Chairman of the Board of Directors of Wendy’s, said: “The sale of our stake in Inspire Brands for $450 million is a great return on this investment for our shareholders.

“Over the past seven years, Wendy’s and its shareholders have benefitted from more than $100 million in distributions and the monetization of this investment carries a 38 percent premium over its most recent valuation.”

For more restaurant industry news on Inspire Brands and Wendy’s, keep following Business-News-Today.com.

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