Employees of Wendy's International Inc. should prepare for job cuts as the acquisition of the nation's third-largest hamburger chain by the owner of Arby's roast beef sandwich restaurants moves forward, the incoming CEO said Monday.
Roland Smith, the chief executive of Atlanta-based Triarc Companies Inc., said in a letter to Wendy's employees that job cuts will come as the company examines ways to become more efficient.
"There will be job cuts at Wendy's," he said. "I don't know how to put it any other way and say that I am acting with integrity. We will continue to be truthful with you about these as they come up."
Triarc, which owns Arby's, announced last month that it is acquiring Wendy's in an all-stock deal worth about $2.34 billion. Under the deal, Wendy's International Inc. will continue to be based in Dublin.
Smith will be CEO of both brands. He told Wendy's employees he'll be moving his family to the Columbus area.
Triarc, which is owned by billionaire investor Nelson Peltz, operates 3,700 Arby's restaurants. Wendy's operates about 6,600 restaurants in the United States and abroad. It trails McDonald's Corp. and Burger King Holdings Inc. in the burger business.
The acquisition is expected to close in the second half of the year.
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