Not on investors’ super value menu
TEXT OF STORY
Scott Jagow: Another well-known brand is up for sale: Wendy’s. But yesterday, Wendy’s said next quartera€™s performance won’t be very good. So finding a buyer might a little difficult. Jill Barshay reports.
Jill Barshay: Wendy’s profits aren’t pretty. But speculators have pushed the company’s market value up by a third since April.
John Hamburger publishes Franchise Times Magazine. He says Wendy’s may be too expensive now.
John Hamburger: I think they can’t find a buyer at what Wall Street was expecting.
Wendy’s founder Dave Thomas famously asked the question: Where’s the beef? Mr. Hamburger says Wendy’s problem is that executives took their eye off the beef.
Hamburger: They really haven’t focused as much on the Wendy’s business since Dave Thomas died. And if you look at all that’s being going on at Wendy’s over the last couple years, it’s really been a zoo there.
Wendy’s dumped donut chain Tim Hortons, and lost almost $250 million when it sold Mexican restaurant Baja Fresh.
It’s not that private equity firms don’t have an appetite for fast food — they made a bundle on Burger King. But at $40 a share, Wendy’s isn’t exactly appetizing.
In New York, I’m Jill Barshay for Marketplace.
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