The Wendy's Company
|The Wendy's Company|
|Traded as||NASDAQ: WEN
S&P 400 Component
|Headquarters||Dublin, Ohio, U.S.|
|Nelson Peltz, Chair
Peter May, Vice Chair
Todd Penegor, President & CEO
|Revenue||$2 billion USD (2014)|
|$161.1 million USD (2015)|
Number of employees
|37,000 (2,500 salaried, 34,500 hourly)|
The Wendy's Company, is an American holding company for the major fast food chain, Wendy's. Its headquarters are in Dublin, Ohio. The company was known as Deisel-Wemmer Co. from 1884 to 1929, Deisel-Wemmer-Gilbert Corporation from 1929 to 1946, DWG Cigar Corporation from 1946 to 1966, DWG Corporation from 1966 to 1993, Triarc Companies, Inc. from 1993 to 2008, and Wendy's/Arby's Group, Inc. from 2008 to 2011.
The company's principal subsidiary, Wendy's International, is the franchisor of Wendy's restaurants. The company is also a franchisor of T.J. Cinnamons and the Pasta Connection, owns 243 T.J. Cinnamons outlets and 6 Pasta Connection outlets and is a minority owner (18.5%) of the Arby's fast food roast beef sandwich chain.
The Wendy's Company traces its history back to several predecessors, the oldest of which (Deisel-Wemmer Co., a cigar manufacturer and importer based in Ohio) was founded in 1884. By January 23, 1929, Deisel-Wemmer incorporated as Deisel-Wemmer-Gilbert Corporation (DWG) when acquired by an investment group. DWG was a small outfit and just to keep up market share purchased other small cigar companies like Odin cigars in 1930 and the Bernard Schwartz Cigar Corporation in 1939. The Company on May 15, 1946, changed its name to a simple name, DWG Cigar Corporation. Another series of acquisitions started in 1948 with the Nathan Elson Company following with A. Sensenbrenner & Sons in 1955 and in 1956 Chicago Motor Club Cigar and Reading, Pennsylvania-based Yocum Brothers. With the weakening of the cigar market due to medical advisories, many smokers switch to cigarettes, which were then believed to be safer. DWG then steamlined cigar operations and began looking for other businesses that might suite DWG's wholesale and distribution strength. The New York Stock Exchange delisted DWG in 1965 after an attempt at purchasing Allegheny Pepsi bottling company failed. DWG, thus free from NYSE reporting requirements, sold their remaining cigar operations or closed them in 1966. Renamed as DWG Corporation, DWG used its cash from the cigar operation sale to purchase a 12% share of the National Propane Corporation. Security Management Company, headed by Victor Posner, a major investor in DWG saw potential with the company as it was bold to sell its main operation. Posner saw it as a good takeover vehicle and became the controlling interest of DWG.
|National Propane Corporation||gas||1966||12% share|
|Wilson Brothers||shirtmaker||January 1967||controlling interest|
|National Propane Corporation||gas||1967||77%|
|Southeastern Public Service Company||medium-size utility maintenance and storage company||1969||40%|
|Southeastern Public Service Company||medium-size utility maintenance and storage company||1970||11%|
|Graniteville Company||textile manufacturer||1982||51%+|
|Evans Products||fiber group||1984|
|Fischbach Corp.||electrical contracting||1985|
- Southeastern Public Service Company subsidiaries
|Arby's||fast food chain||1984||100%|
|a Texas grapefruit grove||produce||1984|
Posner usually placed himself as chairman of the board and president of each company that his Security Management Company subsidiaries, DWG or NVF, a vulcanized fiber manufacturer that controls the other half of Posner's companies. So while collecting reasonable compensation at each company, Posner's overall compensation surpassed major corporation executive pay like General Motors. NVF controlled Sharon Steel Corporation, one of the country's largest specialty steel manufacturers, which led to legal trouble. Posner sat on Sharon Steel's pension trustee board and directed the pension board to invest in Posner-owned properties. In 1971 the SEC sued, after which Posner then agreed not to sit on any pension board for any of his companies. Posner basically let those companies that could get by with minimum maintenance and nothing more do just that. With the run of acquisitions from 1982 and 1985, DWG faced heavy debt. Posner approached one of his backers, Carl Lindner, Jr., for assistance. Instead in 1986, Lindner's American Financial Corporation had acquired warrants for more than 30 percent of DWG's shares. Linder backed down from exercising the warrants but forced Posner to reduce his pay from DWG. Posner also started selling off DWG assets: Foxcroft and Enro shirt groups and the citrus operation. A deal for Royal Crown fell through.
An investor that Posner contacted to help get Sharon Steel out of bankruptcy, indicated that his lawyer, Andrew Heine, might want to buy Fischbach Corp. Just short of Fischbach being sold, Heine's Granada Investments Company made a bid for all of DWG at $22 per share. Posner converted all DWG options into voting shares but was unable to vote them due to an Ohio judge's order. Granada sued Posner for not taking the bid serious and Posner sued back stating the bid had no merit. Posner lost the case in 1991 and was forced to pay $5.5 million to Granada. Further more, the judge noting other investigations in illegal stock trading in the Fischbach acquisition and of Posner's compensation added three court-appointed directors to DWG's board as audit, compensation, and intercorporate transactions committees.
Posner stopped the appointed directors from presenting their report to the full board forcing Judge Lambros to convert 50% of Security Management Company ownership in DWG to preferred shares and to sell the remaining common stock. Posner resigned as chair of DWG in 1992 and sold his shares to Trian Group, a New York-based investment partnership led by Nelson Peltz and Peter May. Shareholders agreed to drop their longstanding lawsuits claiming that DWG was raided and stripped.
In 1993, DWG's name was changed to Triarc Companies, Inc. Peltz served as CEO of the company from 1993 through 2007, during which time the company sold several holdings in order to focus on food and beverage operations after initially deciding on focusing on soft drinks, fast food, textiles, and liquefied petroleum gas.
Triarc in August 1995 purchased Mistic Brands, Inc. from Joseph Victori Wines, Inc. for $97 million, adding to its beverage holdings of Royal Crown Cola, and turned Mistic Brands around with the addition of new products. Triarc sold off its textiles by 1997.
In 1997, Triarc acquired Snapple Beverages from Quaker Oats, which had bought the company from leveraged buyout firm Thomas H. Lee Partners in 1994 for $1.7 billion. Quaker discontinued the Wendy the Snapple Lady (Wendy Kaufman) advertisements and sold Snapple to Triarc for $300 million in 1994. Triarc reintroduced Wendy the Snapple Lady. Cable Car Beverage Corporation, maker of Stewart's Root Beer and other flavors, was purchased by Triarc in November 1997.
National Propane Corporation was sold in 1999.
Snapple, Mistic, and Stewart's (formerly Cable Car Beverage) was sold by the company to Cadbury Schweppes in 2000 for $1.45 billion In October of that same year, Cadbury Schweppes purchased Royal Crown from Triarc.
On April 24, 2008, Triarc announced the acquisition of Wendy's, the international fast food company. The transaction was part of the company's strategy to transition from a holding company for varied businesses into a true food and beverage company. The purchase was finalized on September 15, 2008, when shareholders of both Triarc and Wendy's agreed to the terms. As part of the terms, the name was changed to Wendy's/Arby's Group, Inc.
The Wendy's Company
In January 2011, the group announced it was divesting itself of the Arby's chain, which had seen lackluster sales growth since the acquisition of Wendy's in 2008. It was officially announced the companies had split on January 21, 2011. On June 13, 2011, Wendy's/Arby's Group Inc. announced that it would sell the majority of its Arby's chain to Roark Capital Group, maintaining an 18.5% stake in the company. On August 2011, The Wendy's Company announced it would move its corporate headquarters from Sandy Springs, Georgia to their Dublin Restaurant Support Center (Wendy's International's headquarters) in Dublin, Ohio. This resulted in 50 jobs being moved to Ohio. On December 1, 2011, the company announced it would close the Atlanta Restaurant Support Center in Sandy Springs and consolidate all headquarters operations to the Dublin Restaurant Support Center in Ohio. This resulted in an additional 170 jobs being moved from Sandy Springs to Dublin.
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- "American Fast Food: From Supersize to Downsized – Yahoo!". yahoo. Retrieved January 21, 2011.
- Jargon, Julie; Gasparro, Annie (June 13, 2011). "Wendy's Parts With Arby's Roast-Beef Chain". The Wall Street Journal.