Wendy's considers options

Analysts think a sale is the likely scenario.
DUBLIN, Ohio (AP) -- In the past year, Wendy's International Inc. has spun off its Tim Hortons coffee-and-doughnut chain, dumped its Baja Fresh Mexican Grill and laid off employees at its corporate office. The company may now seek a boost to its stock price with another tactic -- selling off what's left of the nation's third largest hamburger chain.
"We've had a lot of initiatives, and we've executed them well over the last two years," Chief Executive Kerrii Anderson said.
The company announced Wednesday that a special board committee had been formed to study company option, including a possible sale.
The developments mark a whirlwind year for Anderson, who took over as chief executive after longtime CEO Jack Schuessler abruptly retired last year. She completed a flurry of transactions, including Tim Hortons' initial public offering and eventual spinoff, and quickly rededicated the chain to promoting the core business of signature square hamburgers and the Frosty, a dessert in a cup.
"We believe the company has done a good job of delivering value to the shareholders, and the formation of this special committee is just another step in our continuing efforts to further enhance value for our shareholders," board chairman James V. Pickett told investors Thursday at the company's annual meeting at the corporate headquarters.
Stock increases
Thursday, one day after the announcement, Wendy's shares shot up more than 16 percent, or 5.31, to close at 37.99 on the New York Stock Exchange, its highest level since the spinoff of Tim Hortons last fall when the stock reached a record 67.19.
Billionaire investor Nelson Peltz's Trian Partners, which owns a big chunk of Wendy's stock, has pushed for changes to boost shares and received three seats on the board in March 2006. His company Triarc Cos. controls fast-food chain Arby's.
While the new committee might decide against a sale, analysts believe is the probable outcome.
"We believe the sale of Wendy's to private equity, rather than a strategic buyer," but any sale probably would not be completed by the end of the year, analyst Larry Miller of RBC Capital Markets said in a note Thursday. He pegged the company's value at 38 a share, slightly above Thursday's trading price.
Family reactions
The sale would be a disappointment for the restaurant's namesake and daughter of founder Dave Thomas, Wendy Thomas, who attended the shareholder's meeting along with her mother and siblings.
"I hope it doesn't happen, but everything is going to work out the way it's meant to be," said Wendy Thomas, who, along with her four siblings, owns 32 restaurants.