Page last updated at 15:56 GMT, Thursday, 24 April 2008 16:56 UK

Wendy's chain bought for $2.3bn

Wendy's sign
Wendy's has faced tough rivalry from other firms

Burger chain Wendy's is to be bought by Triarc, the parent firm of Arby's restaurants for $2.34bn (1.18bn).

The news came after Wendy's saw a 72% fall in first quarter profits to $4.14m from $14.7m a year earlier. Wendy's said the deal would help to cut costs.

Wendy's and fellow fast-food chain Arby's will remain as separate brands.

Wendy's has been hit by tough competition from McDonald's, which has widened its menu and Burger King, which has offered a cheaper breakfast menu.

Triarc's chief executive officer Roland Smith, who will take over that role for Wendy's as well, said the new firm would focus on global growth and offer more breakfast items.

"We also expect to drive significant synergies and improve efficiency, resulting in substantial annual savings for our combined organization," he said.

Wendy's board had earlier rejected two former offers from Triarc, which is owned by billionaire Nelson Peltz.

The deal is set to be complete in the second half of 2008, following regulatory approval.

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