Wendy’s International struggling but failing to keep up with the tremendous sales and stock surge of rival McDonald’s on Wednesday made a surprise announcement that the chain could be on the block.
In the announcement after the close of the stock markets — and just one day before its annual meeting — the No. 3 burger chain said it was forming a special committee of directors to consider several options, including a possible sale, merger or other business combination.
Shares of Wendy’s were up 15%, or $4.82, to $37.50 in trading Thursday morning on the New York Stock Exchange, its highest level since the spin off of its Tim Hortons coffee-and-doughnut chain last fall.
That committee will be chaired by James Pickett, who was named board chairman last year, the company said.
“We believe the company has done a good job of delivering value to the shareholders, and the formation of this special committee is just another step in our continuing efforts to further enhance value for our shareholders,” Pickett told investors Thursday at the company’s annual meeting, held at the corporate headquarters in this Columbus suburb.
FranchiseBrief.com on April 27th, 2007 at 3:20 am
There is a lot of money at stake here… Who’s gonna buy? Private equity fund?? Probably…