This week’s announcements that YUM will shop the Long John Silver’s (LJS) and A&W Brands, and the announcement that Arby’s will be shopped by Wendy’s/Arby’s means that multi-brand chain restaurant operator decombination is continuing.
Less is More: The stronger are jettisoning the weaker since there is some deal capability present and because it makes sense. This is a continuation of long-term conglomerate disentanglement. Look at the difference between all the brands McDonald’s had in 2002 (several) versus now (one), and its performance. For example. Many of today’s and yesterday’s weak or essentially out of chains trace their problems back to M&A hell and a lack of focus.
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