Shares of DuPont Co. rose modestly this morning to above $65.50 — a 13-year high — after last night’s announcement that the Wilmington-based chemical giant plans to spin off its profitable but volatile Performance Chemicals business, and its related fluorochemicals and titanium-dioxide (white-paint-base) factories, including a TiO2 plant at Edge Moor, Del., over the next year and a half. The new company will have sales of around $7 billion a year, vs. $28 billion for what’s left of DuPont.
Two major US fast food conglomerates are looking for ways to maximize profits. Selling off several chains that do not fit into their long-range plans are being considered.
Yum Brands is looking for a buyer for their A&W and Long John Silver’s restaurant chains. Yum Brands is concentrating on overseas development and neither Long John Silver’s or A&W have an international presence. That would leave Yum Brands with KFC, Taco Bell and Pizza Hut, which all have international locations. A&W and Long John Silver’s have a combined total of 1, 630 locations nationwide.
Wendy’s is looking to sell Arby’s so they can concentrate on Wendy’s development. Wendy’s/Arby’s combined have over 10,000 restaurants. Wendy’s is the larger chain with over 6,500 restaurants. Arby’s is struggling because they tend to be more expensive than other fast food chains and offer less of a dollar menu.
Wendy’s/Arby’s is also the target for a potential takeover bid after receiving an inquiry to buy the chain in June of last year.