Wendy’s sells its stake in Arby’s owner Inspire Brands for $450m

The Wendy’s Company has sold its stake in Inspire Brands, the holding company of restaurant chains Arby’s and Buffalo Wild Wings, for $450 million.

The burger chain will offload its 12.3% ownership back to Inspire Brands. The sale price represents a 38% premium on Wendy’s previous valuation of the investment, it said.

Wendy’s added that it views the transaction as one that will provide the company with future flexibility to invest in the growth of the Wendy’s brand.

Inspire Brands was founded earlier this year by Roark Capital after the investment firm’s Arby’s bought Buffalo Wild Wings for $2.9 billion.

Wendy’s chairman of the board of directors Nelson Peltz said: “The sale of our stake in Inspire Brands for $450 million is a great return on this investment for our shareholders.

“Over the past seven years, Wendy’s and its shareholders have benefitted from more than $100 million in distributions and the monetisation of this investment carries a 38% premium over its most recent valuation.”

Wendy’s CEO Todd Penegor added: “We have benefited from and enjoyed our partnership with Inspire, and we wish Paul Brown and the team continued success in the future.

“The opportunity to monetise 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.

“The flexibility provided by the sale proceeds and the additional share repurchase authorisation through 2019 will also allow us to continue to create value for our shareholders.”