Arbys Parent Triarc (NYSE:TRY) to Acquire Wendys International Inc (NYSE:WEN)

Wendy’s International Inc (NYSE:WEN) has agreed to be acquired by Triarc Companies, Inc (NYSE:TRY) in a deal worth $2.3 billion.  The deal was approved by both boards and Wendy’s shareholders will receive 4.2 shares of Triarc class A common stock for each Wendy’s share of common stock.

Although the companies will join together, they will continue to operate separately.  Together the companies will have 10,000 restaurants and an annual sales rate of over $12.5 billion but will only be equal to half of the industry’s leader McDonalds (NYSE:MCD).

The companies will be expanding their breakfast items and pursue global opportunities, acquisitions and new unit development.  An Atlanta based support center will oversee central service functions in addition to public company responsibilities.

Chief executive officer, Roland Smith, will assume the role of CEO for Wendy’s.  “We believe the combination of Arby’s and Wendy’s will create a powerful new restaurant company and a ‘must own’ restaurant stock with significant upside potential,” Smith announced. 

Wendy’s first quarter earnings fell 72% on Thursday to $4.14 million from $14.7 million compared to one year ago.  

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