Arby’s, Wendy’s merger complete

Atlanta-based Triarc Cos., parent company of Arby’s Restaurant Group, and Ohio-based Wendy’s International completed a merger Monday that creates the third-largest U.S. fast-food company.

The new company, Atlanta-based Wendy’s/Arby’s Group, is expected to start trading Tuesday on the New York Stock Exchange under the ticker symbol WEN.

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Brant Sanderlin/bsanderlin@ajc.com

Atlanta based Triarc, owner of Arby’s brand, celebrated the acquisition of Wendy’s by treating employees to a lunch from the Wendy’s mobile truck. Roland Smith, former chief executive officer of Triarc and now president and CEO of Wendy’s/Arby’s Group, partakes.

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The merger, orchestrated by billionaire Nelson Peltz, raises Atlanta’s status on the fast-food map. Peltz was chairman and leading stockholder of Triarc before seeking to add Wendy’s to his holdings.

Wendy’s/Arby’s Group trails only McDonald’s Corp. and Yum Brands, owners of Taco Bell, KFC and Pizza Hut, in annual systemwide U.S. sales.

“Overnight, we’ve become what we believe is a significant force in the industry, and hopefully, from an investor’s standpoint, a stock that people can’t pass up,” said Roland Smith, former chief executive officer of Triarc and now president and CEO of Wendy’s/Arby’s Group.

Smith, who had been head of Arby’s, also became Monday the CEO of the Wendy’s brand. He’ll split time between Dublin, Ohio, and Atlanta. Tom Garrett, former president and chief operating officer of the Arby’s Restaurant Group, takes over as Arby’s CEO.

To celebrate the merger, a Wendy’s taste tour truck treated employees to lunch Monday outside of Arby’s Atlanta headquarters.

Wendy’s/Arby’s is creating a shared services group that will consolidate some functions, such as accounting, investor relations and human resources, Smith said. The group and most of its employees will be based in Atlanta, he said.

About 100 people could be added to the Wendy’s/Arby’s Group headquarters just outside the Atlanta perimeter, Smith said. Arby’s and Triarc already have about 400 employees at the site.

Wendy’s, though, will keep its Ohio headquarters, and the brands will remain distinct, Smith said. Wendy’s will be burgers, salads and Frosty desserts. Arby’s will be roast beef sandwiches, Jamocha shakes and curly fries, he said.

“We’re not going to lose the great things that got us to where we are,” Smith said.

Wendy’s will focus on improving store profit margins and stressing fresh products, Smith said. With 6,600 stores, expansion will be modest, he said.

“What we hopefully can do is reconnect with the customer and remind them what a great brand Wendy’s is,” Smith said. “People have forgotten that the beef is fresh, never frozen, and the produce is all fresh.”

Arby’s, which has 3,700 stores, will be in expansion mode. It hopes to hit 5,000 stores in the next four to five years.

“We still have a very aggressive development schedule before we think domestically we’ve run out of opportunities,” Garrett said.

Wendy’s and Arby’s stores could share space in a few U.S. markets where prime real estate is hard to find, but co-branded domestic outlets are not a major part of the strategy, Smith said.

Wendy’s and Arby’s could be paired together in international markets, he said. Neither has a strong presence outside of North America.

A separate group reporting directly to Smith will oversee international expansion for both brands. “We have a huge international opportunity where Wendy’s and Arby’s are underdeveloped,” Smith said.