DUBLIN, Ohio — Wendy’s International Inc. said Tuesday it plans to spin off its remaining 82.75 per cent stake in Tim Hortons Inc. to Wendy’s shareholders around Oct. 1.
The Ohio-based company also disclosed Tuesday that same-store sales at its Wendy’s and Baja Fresh restaurants will be lower than expected in the second quarter, which ends this week.
Wendy’s also said it will have lower net income contribution from Tim Hortons in the second quarter, due to the spinoff of 17.25 per cent of the company through an initial public offer, as well as higher expenses related to the reorganization
“The board’s unanimous decision to spin off the remaining shares of Tim Hortons confirms the commitment that we initially made to shareholders,? Wendy’s chairman Jim Pickett said Tuesday. The spinoff of Tim Hortons, acquired more than a decade ago by Wendy’s, is part of an agreement made between Wendy’s major shareholder Trian Partners. Nelson Peltz, head of Trian, had been pushing Wendy’s to speed up the process.
Pickett said the spin off of the remaining Tim Hortons stake this fall “will quickly deliver value to shareholders and enable the management teams of both companies to focus on their respective strategies, operations and growth agendas,? Pickett said.
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