Wendy's International Inc., under pressure from shareholders to boost its stock price, plans to offer a stake in its Tim Hortons doughnut chain to the public and close or sell about 450 hamburger restaurants.
The company's shares surged 14%, their biggest gain in almost 18 years.
Wendy's will sell as much as 18% of Tim Hortons in an initial offering that could raise $900 million, Chief Executive Jack Schuessler said in an interview. Wendy's, the No. 3 hamburger chain, also plans to sell the real estate at 217 sites leased to franchisees, buy back an additional $1 billion in shares and raise its dividend by 25%.