Wendy’s explores sale
Wendy’s International has announced that a special committee of its board of directors will begin exploring the possibility of selling the company.
“Our goal is to move forward expeditiously and to minimize disruption to the company and its operations,” said James Pickett, chairman of the burger chain. “While a sale remains only one of the alternatives under consideration, we believe it merits more thorough examination.”
In addition to a possible sale, members of the special committee are also exploring possible securitization financing or recapitalization of the company.
The company said it has hired JP Morgan and Lehman Brothers Inc. to act as advisers on the sale process.
In addition to offering itself up, the Dublin, Ohio-based firm also told investors that lower-than-expected sales and rising costs have led the company to cut its 2007 earnings outlook.
The company said it expects to make $1.09 to $1.23 per share, down from its earlier estimate of $1.26 to $1.32 a share. – TRACIE STONE