Investizmo » wendy’s http://www.investizmo.com Tue, 01 Jun 2010 13:00:40 +0000 en hourly 1 http://wordpress.org/?v=3.2.1 Weird Merger Of The Day: Arby’s eats Wendy’s http://www.investizmo.com/2008/04/24/weird-merger-of-the-day-arbys-eats-wendys/ http://www.investizmo.com/2008/04/24/weird-merger-of-the-day-arbys-eats-wendys/#comments Thu, 24 Apr 2008 17:18:31 +0000 iGuru http://www.investizmo.com/index.php/?p=43 I didn’t see this one coming. Roast Beef purveyor Arby’s parent company is buying Wendy’s for $2.34 billion, and a mountain of curly fries.

Here’s where things get weird and wonderful.

- Wendy’s International has a market capitalization of about $2.2 billion USD (market cap is simply the value of the company based on share price multiplied by # of shares outstanding)

- Arby’s parent company Triarc Cos. has a market cap of $597 million USD.

So Arby’s is buying Wendy’s even though it is worth about one quarter LESS. Those wacky Investment Bankers sure know how to do the strange and seemingly impossible.  

I don’t really eat this kind of fast food and I have no idea if these two brands will make a successful marriage. All I know is that I’m getting hot and can use a Frosty.  Maybe I can offer 25% of the listed price, or 3 curly fries instead of cash…..

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