Tuesday, June 14, 2011

Investopedia: Can Arby's Ever Find A Stable Home?

Normally the decision of Wendy's/Arby's Group (NYSE:WEN) to sell off Arby's to a private investment group would not interest me all that much. After all, it's a struggling (and not notably well-run) business selling off a non-core asset that itself has seemingly spent more years struggling than thriving since its founding. 

And yet, there is something interesting about this story that investors in the restaurant sector probably should not ignore. Not only is there is a lesson about the durability of brands, but also just how difficult it is to crack into the rarefied air of those chains that really matter.


The Long Strange Trip of Arby's
There are more than a few weird stories in the annals of restaurants - from flatulent tortoises at Rainforest Cafe (now owned by Landry's), weird animatronics, lawsuits and bankruptcies at CEC Entertainment's (NYSE:CEC) Chuck E. Cheese's, and the mass-market success of Hooters. Nevertheless, Arby's still manages to stand out. 



To continue, please follow the link:
http://stocks.investopedia.com/stock-analysis/2011/Can-Arbys-Ever-Find-A-Stable-Home--WEN-CEC-MCD-YUM-CKE-DMZ-SBUX0614.aspx

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