(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) 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) and Starbucks ( SBUX) to Jack in the Box ( JACK) and Panera Bread ( PNRA).
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