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Triarc to Replace Wendy's Chief After Merger

Source: Reuters
28/07/2008

Los Angeles, 28 July, 2008 - Wendy's International Inc franchisee J. David Karam will assume day-to-day operations from Kerrii Anderson, Wendy's president and chief executive, when Triarc Cos Inc closes its purchase of Wendy's later this year, Triarc said Friday.

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Triarc, the investment arm of billionaire investor Nelson Peltz, appointed Karam, 50, president of the third-largest hamburger chain in the U.S.

When the $2 billion deal was announced in April, Triarc said its CEO, Roland Smith, would become Wendy's CEO.

The announcements spelled the end of Anderson's tenure at the top of Wendy's -- a position she has held since late 2006.

Incoming Wendy's President Karam is a minority shareholder in Wendy's and president of Cedar Enterprises Inc, which owns and operates 135 Wendy's restaurants in Indianapolis, Las Vegas, San Antonio, Hartford and Seattle.

Karam in September told reporters he wanted to make a bid for Wendy's and that he had backing from two private equity firms.

Triarc, which eventually prevailed in the lengthy bidding war for Wendy's, also said that Stephen Farrar, 57, will become chief operating officer of Wendy's when the merger is completed. Farrar returned to Wendy's as chief of North American operations in April after retiring in 2006.

Additionally, Triarc said that Ken Calwell, 46, will take up the role of chief marketing officer. He was most recently chief marketing officer at Dominos Pizza.

Wendy's, known for using fresh beef, has struggled since the 2002 death of company founder Dave Thomas, who was an advertising cult hero and starred in more than 800 commercials starting in 1989.

The pending merger, announced in April, would put the two fast-food chains under the same umbrella and could help the No. 3 hamburger restaurant lower costs as it struggles to regain market share lost to rivals like McDonald's Corp, Burger King Holdings Inc and CKE Restaurants Inc's Carl's Jr.

In midday trading on the New York Stock Exchange Wendy's shares were up 17 cents to $22.89, while Triarc's stock was down 2 cents to $5.44.



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