COLUMBUS Ohio A 134-unit Wendy’s franchisee has revealed that it is one of the parties that could make a bid for franchisor Wendy’s International Inc. David Karam, president of Cedar Enterprises Inc., told the Associated Press that he and representatives of two allied private-equity firms intend to meet with Wendy’s management for a second time in anticipation of submitting an offer for the No. 3 burger brand as early as next month.
The son of an original investor in Wendy’s, Karam reportedly is supported in his acquisition effort by the family of chain founder Dave Thomas. Cedar is based in Columbus, which is near Wendy’s headquarters in Dublin, Ohio.
If the Cedar group makes a bid, it could find itself in competition with billionaire investor Nelson Peltz, whose Trian Fund Management holds a 9.8-percent stake in Wendy’s. Peltz has described Arby’s parent Triarc Cos., in which he owns a 34-percent interest, as a “natural, strategic buyer” of Wendy’s. Peltz has said the firms with which he is affiliated might pay between $37 and $41 for each share of Wendy’s stock, which would value the company at $3.2 billion to $3.6 billion.
Karam did not tell the AP how much his group might be willing to pay for the company, but he indicated that he regarded the current stock price as high. Wendy’s shares were trading Wednesday at around $33.
Cedar posted estimated sales of $178.5 million in fiscal 2006, according to Nation’s Restaurant News’ annual Top 200 survey.
Cedar is backed by two private-equity firms, Kelso & Co. and Oak Hill Capital Partners. According to a recent report in the Wall Street Journal, at least a dozen suitors are interested in placing bids for Wendy’s, which operates or franchises 6,600 units worldwide.
Wendy’s disclosed earlier this year that it was seeking a sale or other means of boosting the value of its stockholders’ investment.
