News

Arby's parent company pays $450 million for Wendy's stake in brands

August 16, 2018

The owner of Arby's, Buffalo Wild Wings and R Taco — Inspire Brands — is buying back Wendy's 12.3 percent ownership stake in the brand for $450 million. Wendy's Company board members approved the sale, which represents a 38 percent premium on Wendy's previous valuation of the investment.

"The sale of our stake in Inspire Brands for $450 million is a great return on this investment for our shareholders," Wendy's board Chairman Nelson Peltz, said in a news release. "Over the past seven years, Wendy's and its shareholders have benefitted from more than $100 million in distributions and the monetization of this investment carries a 38 percent premium over its most recent valuation."

Wendy's President and CEO Todd Penegor said it has been a beneficial partnership, but it was time to move on.

"The opportunity to monetize our investment in Inspire Brands will allow us to invest in future growth for the Wendy's brand and company, which is our top priority," Penegor said. "The flexibility provided by the sale proceeds and the additional share repurchase authorization through 2019 will also allow us to continue to create value for our shareholders."