Wendy’s/Arby’s Group, Inc. (WEN), the third largest quick-service restaurant company in the U.S., recently announced that its board of directors increased the company’s stock repurchase authorization by $75 million to a total of $325 million.
Since the board of directors initiated the stock repurchase program in August 2009, the company has repurchased 47 million shares of its common stock for approximately $223.1 million, at an average price of $4.73 per share. Wendy’s/Arby’s has approximately $102 million available for stock repurchases under the board’s authorization.
As of April 4, 2010, before the announcement of the new stock repurchases authorization, Wendy’s/Arby’s had 340 million shares of common stock outstanding. The current common stock repurchase program will remain in effect through January 2, 2011.
The increase in stock authorization is encouraging for the shareholders as it is likely to increase shareholder’s value.
Wendy’s/Arby’s is one of the leading quick-service restaurant companies in the U.S. The company was formed through the merger of Triarc, the franchisor of the Arby’s restaurant chain, and Wendy’s, the owner-operator-franchisor of the eponymous fast food chain. Wendy’s and Arby’s continue to operate independently, with Wendy’s headquartered in Dublin, Ohio and Arby’s in Atlanta, Georgia. The combined restaurant systems include more than 10,000 restaurants in the U.S. and 24 other countries as well as territories worldwide.
We maintain a Zacks #3 Rank on Wendy’s/Arby’s, which translates into a short-term Neutral recommendation.
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