Business Feedstuffs, July 11, 2011
7
Arby’s sold; Wendy’s renamed
By ROD SMITH resources toward the fran-
Key Points chise’s growth, including
L
AST week, Wendy’s/ modernizing or building new
Arby’s Group Inc. an- ■ Wendy’s/Arby’s Group
becomes The Wendy’s restaurants, core menu re-
nounced completion of
Co. vitalization, expanding the
the sale of the Arby’s restau-
■ Wendy’s will retain breakfast and other dayparts
rants to Roark Capital Group,
effective July 4, in a cash 18.5% interest in Arby’s. and global growth. The com-
transaction that totals $130 ■ New Wendy’s logo will pany said its new logo, which
million and gives Roark 81.5% use Quality is Our Reci- will incorporate the origi-
of the system. pe Worldwide tagline. nal Wendy’s red-haired girl
Roark will also assume $190 cameo, will carry the tagline
million of Arby’s debt. “Quality is Our Recipe World-
Subsequent to the an- wide.”
Wendy’s/Arby’s, which was
Photo: The Wendy’s Co.
established three years ago nouncement last week, the Arby’s had 3,649 restau-
in the merger of Arby’s Res- company said it is changing rants in the U.S. and world-
taurant Group and Wendy’s its name to The Wendy’s Co., wide at the end of last year
International Inc. (Feedstuffs, effective immediately, and will and $1.064 billion in sales.
Oct. 6, 2008), announced trade on the New York Stock It will join Roark’s lineup of
earlier this year that it was Exchange as “WEN.” restaurants that includes Cin-
Wendy’s said it will retain nabon, Corner Bakery, II For- ON THE EXPANSION: The Wendy’s Co. plans to expand its
considering strategic options
an 18.5% interest in Arby’s to naio, McAlister’s Deli, Moe’s Wendy’s Old Fashioned Hamburger restaurants worldwide,
for the Arby’s business (Feed-
benefit from the brand’s con- Southwest Grill, Schlotzsky’s including the Russian market, which it entered with this unit
stuffs, Jan. 31) and reported
last month that Roark had tinuing turnaround and “fu- and Wingstop. last month.
agreed to acquire majority ture success.” Wendy’s, the third-largest
ownership (Feedstuffs, June Wendy’s said it now will quick-service restaurant sys- stores in the U.S. and 25 other year and $1.981 billion in
20). devote full attention and tem in the U.S., had 6,576 countries at the end of last sales. ■
Merck renames animal health business
By ROD SMITH growth opportunities that merger, especially given earlier acquisition of Orga-
can be leveraged across both lengthy regulatory scrutiny non BioSciences N.V., which
MERCK & Co. has renamed animal and human health. and the probable product combined Schering-Plough’s
its Intervet/Schering-Plough The announcement said divestitures that would have animal health business with
Animal Health business as the name change follows the been required (Feedstuffs, Organon’s Intervet animal
Merck Animal Health, effec- decision earlier this year by March 28). health business (Feedstuffs,
tive June 29, according to an explained Merck Animal Merck and sanofi-aventis not Merck Animal Health was Nov. 26, 2007).
announcement. Health president Raul Ko- to merge Intervet/Schering- established in Merck’s ac- Merck Animal Health,
The company will be Plough and sanofi’s Merial
han. quisition of Schering-Plough headquartered De Soto,
known outside the U.S. and Animal Health into Merial-
“We are unwavering in our Corp. and its Intervet/ Kan., is the second-largest
Canada as MSD Animal Intervet, which would have
commitment to producers, Schering-Plough business animal health company in
Health, the announcement been decisively the largest
veterinarians, pet owners (Feedstuffs, Nov. 9, 2009). In- the world and recorded 2010
said. animal health company in
and society, (and) we aim tervet/Schering-Plough was sales that totaled $2.9 bil-
The name change reflects the world with $5.5 billion in
to generate additional value formed in Schering-Plough’s lion. ■
Merck’s commitment to the sales.
animal health business and and sustained growth,” he The two companies made
its complementary role to said. that decision due to the in- Stock Summary
Merck’s overall business, Kohn said the business has creasing complexity of the Feedstuffs-Moskow Stock Indexes July 6 June 28 Year ago
Agribusiness 368.80 361.40 309.00
Baking 159.00 152.5 142.30
Hormel reports 20% Fertilizer
Meat
Poultry
Packaged Foods
758.80
346.50
192.80
154.20
732.10
342.50
193.00
151.10
414.80
256.70
176.70
132.30
increase in earnings Dow Jones Industrials
NASDAQ
S&P 500
12,626.00
2,834.02
1,339.20
12,189.00
2,729.31
1,296.70
10,018.00
2,159.47
1,060.30
FINANCIAL REPORT — Hor- ity costs pressured results in pared with $125.7 million and -------2010-11------- July 6 June 28
Highs Lows* close close
mel Foods Corp. has reported the quarter, but core products $1.786 billion the year before. Andersons, The 50.16 31.67 42.97 41.22
a 20% increase in earnings for such as the SPAM line of prod- For its Jennie-O Turkey ADM 37.65 25.78 30.75 29.60
its fiscal 2011 second quarter ucts, Dinty Moore stew, Horm- Store division, Hormel report- Balchem 44.49 23.99 44.15 42.83
and a 28% increase in earn- el bacon toppings and Hormel ed second-quarter operating Bunge Ltd. 75.44 46.29 70.38 67.17
Cagle’s 11.64 3.85 3.85 4.15
ings for its six months, report- Mary Kitchen hash delivered profits and sales of $46.7 mil- Cal-Maine Foods 33.93 26.74 32.56 31.26
ing that growth was led by its strong performances. lion and $366.0 million, com- Church & Dwight 42.05 30.16 40.99 40.26
meat and turkey divisions. For grocery products, Hor- pared with $32.2 million and ConAgra 25.99 21.14 25.99 25.72
For its quarter ended May 1, mel said six-month operating $292.6 million the year before. Corn Product 57.14 28.49 56.95 55.12
CSX 26.81 15.82 26.71 25.51
Hormel reported net earnings profits and sales were $87.6 Hormel said results were Digital Angel 0.61 0.17 0.23 0.20
of $109.6 million, or 40 cents million and $537.2 million, due to better commodity DuPont 56.79 34.05 55.20 52.66
per share, on revenues of compared with $87.2 million meat markets and improved Hormel 30.29 20.75 30.29 29.49
$1.959 billion, compared with and $518.3 million the year operating efficiencies, with IGI 1.80 1.00 1.14 1.11
Internatl Flavors 65.24 42.04 64.33 62.81
$77.9 million, or 29 cents per before. On an adjusted basis, value-added sales up in all KC Southern 61.87 32.38 61.87 57.17
share, on revenues of $1.700 grocery profits the year be- three sales channels. Kraft Foods 35.85 28.25 35.85 34.53
billion in its 2010 second fore were $96.9 million. For the turkey division, Hor- Lilly 39.15 33.59 37.66 37.35
Merck 37.58 31.08 35.53 34.91
quarter. For its refrigerated foods di- mel said six-month operating Monsanto Co. 76.05 45.12 74.79 66.90
For the six-month period, vision, which houses its fresh profits and sales were $120.5 Mosaic 89.06 39.13 68.23 65.17
Hormel reported net earnings and processed meat prod- million and $730.5 million, MWI Veterinary Supply 84.30 47.40 83.20 81.71
of $258.4 million, or 95 cents ucts, Hormel reported sec- compared with $65.4 million Neogen 46.75 25.41 46.75 44.87
Novartis 64.52 48.55 61.58 59.98
per share, on revenues of ond-quarter operating profits and $612.5 million the year Omega Protein 14.81 4.26 13.80 13.97
$3.881 billion, compared with and sales of $70.3 million and before. Pfizer 21.45 14.29 20.78 20.55
$189.1 million, or 70 cents per $1.041 billion, compared with Hormel also reported Philip Morris 28.06 20.54 26.82 26.36
share, on revenues of $3.427 $55.5 million and $893.5 mil- strong results for its inter- Pilgrims Pride 8.40 4.05 4.93 5.08
Potash Corp. 63.31 28.20 57.10 54.95
billion in its 2010 first half. lion the year before. national and specialty foods Sanderson Farms 53.20 38.59 47.17 47.55
For its grocery products di- Hormel said its results were divisions, although operating Sara Lee 19.66 13.43 19.43 18.85
vision, Hormel reported sec- mainly due to higher margins profits slipped for specialty Seaboard 2,443.00 1,387.05 2,409.00 2,408.00
ond-quarter operating profits for fresh pork, but Hormel foods due to higher commod- Smithfield Foods 24.76 13.79 22.43 21.99
Strategic Diag. 2.63 1.54 2.14 1.99
and sales of $39.0 million and Cure 81 hams, Hormel Natural ity costs. Tejon Ranch 37.26 21.24 34.75 33.96
$260.3 million, compared with Choice deli meats and Hormel Hormel also announced Tyson Foods 19.92 14.84 19.24 19.16
$33.0 million and $256.7 mil- party trays also made strong that its board of directors has YUM! Brands 56.75 38.70 56.15 55.37
lion the year before. On an contributions. approved a cash dividend of The Feedstuffs Stock Summary indexes and stock quotes are provided by
adjusted basis, grocery prof- For refrigerated foods, Hor- 12.75 cents per share on the Credit Suisse First Boston (CSFB), New York, N.Y. Moskow Stock Indexes
its the year before were $42.8 mel said six-month operating company’s common stock, are developed exclusively for Feedstuffs by Rob Moskow at CSFB. E-mail
million. profits and sales were $166.4 payable Aug. 15 to holders of robert.moskow@credit-suisse.com.
*Highs and lows are as of July 6.
Hormel said high commod- million and $2.051 billion, com- record July 23. ■