Fast Food Looks For Growth

Seeking Alpha:

From time to time, we like to check back in with our senior restaurant industry analyst, Ann Northrop, CFA, to find out where the strengths and weaknesses within this market are likely to be found in the near term.

What’s new in the “fast-food,” or quick-service restaurants [QSRs], under your coverage?

Well, this may not be very new, but it’s still substantial: after two failed attempts, Nelson Peltz, Chairman of Triarc, the franchisor of Arby’s restaurant chain, was able to strike a buyout deal with Wendy’s. Under the agreement announced April 24th, Wendy’s shareholders will receive 4.25 shares of Triarc Companies for each share of Wendy’s they own. This equates to $28.18 per share at Triarc A shares’ current price, an 11.8% premium to Wendy’s share price at the close the day before the announcement. On June 2nd, the Federal Trade Commission approved the deal and it is expected to close in the second half of 2008.

Are you seeing any QSRs making strides internationally, in places such as China? Continue reading.