Wendy’s Ponders Arby’s Sale, Signs Argentina Deal

Wendy’s/Arby’s Group is exploring strategic alternatives, including possible sale, for the 3,700-unit Arby’s chain. The Atlanta-based company says that selling the Arby’s chain would help provide capital for reinvestments at Wendy’s, including new breakfast and burger lines, restaurant remodels, a new store prototype and international growth.

On that point, the company hopes to expand Wendy’s international presence from its current base of 340 restaurants to as many as 8,000 over several years. Since June 2009, Wendy’s/Arby’s Group subsidiaries have signed long-term development agreements with franchisees for North Africa, the eastern Caribbean, the Middle East, Russia, Singapore and Turkey.

Wendy’s kicked off its global push by inking an agreement with Desarrollos Gastronomicos S.A. to develop 50 Wendy’s units in Argentina during the next decade; the first location will open this year in Buenos Aires. Overall in ’11, Wendy’s expects to open approximately 50 new international franchise stores. On the domestic front, it anticipates 20 new company stores and 45 franchise stores.