(Wendy's/Arby's sale to private-equity group Roark Capital Group report updated with further analysis and background.)
NEW YORK (TheStreet) -- Wendy's/Arby's (WEN - Get Report) sale of its struggling Arby's chain to private-equity group Roark Capital Group shows that the fast-food restaurant operator is looking to deleverage its balance sheet and finally divest a brand that's been dragging on its financials for years.
"You just have a lot more competition from the fast-casual space and from Subway," Saleh said. Roark certainly faces headwinds as it takes on the Arby's brand, perhaps most notably in the area of rising ingredient costs which have hit a roster of food and beverage companies across the sector from McDonald's ( MCD - Get Report) and Starbucks ( SBUX - Get Report) to Jack in the Box ( JACK - Get Report) and Panera Bread ( PNRA).
>>See our new stock quote page. Get more stock ideas and investing advice on our sister site, Stockpickr.com.