Triarc Companies Inc. (TRY)

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Triarc swings to 1Q loss on Deerfield-related charge
Date : 05/09/2008 @ 1:39PM
Source : TFN
Stock : Triarc Companies (TRY)
Quote : 6.35 -0.03 (-0.47%) @ 11:35AM
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Triarc swings to 1Q loss on Deerfield-related charge




ATLANTA (AP) - Triarc Cos., which is buying Wendy's International Inc., said
Friday it swung to a first-quarter loss due to a charge related to Deerfield
Capital Corp.
The owner and operator of the Arby's fast-food chain also said it expects
the Wendy's acquisition to close during the second half of the year.
Triarc, whose chairman and largest shareholder is billionaire investor
Nelson Peltz, is buying Wendy's, the nation's third-largest hamburger chain, in
an all-stock deal worth about $2.34 billion.
Triarc reported a first-quarter loss of $67.5 million, or 73 cents per
share, compared with a profit of $7.1 million, or 7 cents per share, in the
prior year.
For the period ended March 30, revenue edged up 0.3 percent to $302.9
million from $302 million.
In December, Deerfield Capital completed its acquisition of its external
manager, Deerfield & Co. LLC, from Triarc, paving the way for Triarc to become a
pure-play restaurant company. Triarc was in the midst of a restructuring to shed
Deerfield & Co., a Chicago-based fixed income asset manager, so it could focus
on the restaurant business.
Quarterly results included an investment loss of $68.1 million related to
Deerfield.
In March Triarc's board approved the distribution of Deerfield common stock
to its shareholders, which occurred last month.
Systemwide same-store sales rose 0.4 percent during the quarter.
Same-store sales, or sales at stores open at least a year, is a key
indicator of retailer performance because it measures growth at existing stores
rather than newly opened ones.
Shares of Triarc shed a penny to $6.40 in afternoon trading.

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