Wendy’s Future Remains Clouded

Columbus Dispatch:

If shareholders of Wendy’s International do the expected tomorrow and sign off on the company’s sale, the burger chain’s new owners will have much work ahead.

Turning around Wendy’s lackluster performance will be difficult, observers and stakeholders said. But combining with Arby’s will offer some advantages that could make it easier.

Shareholders of both Wendy’s and Triarc Cos., the buyer, will meet tomorrow to vote on the transaction. It’s the culmination of more than a year of wrangling over the company’s future.

Triarc is led by billionaire investor Nelson Peltz, whose involvement with Wendy’s began in late 2005 when he bought a stake in the company and agitated for change. In April 2007, Wendy’s formed a special committee to consider options for the company’s future, and a year later the committee announced its decision to sell to Triarc.

“There’s a tremendous amount of opportunity if the Wendy’s brand can be revitalized,” said Larry Miller, an analyst with RBC Capital Markets. “The Wendy’s brand really needs a repositioning.” More.