Peltz Rides to the "Rescue" of Carl's Jr., Hardee's -- Although The Brands May Not Survive It

Just last week, it looked like CKE Restaurants (CKR), owner of burger joints Carl's Jr. and Hardee's, was going to have to swallow a lowball takeover offer from retail investment specialist Thomas H. Lee Partners. Now, though, a white knight -- activist food investor and Wendy's/Arby's chair Nelson Peltz -- looks to be riding to the rescue. Which means a food fight might be ready to break out over the fast-food chains.

Should a rival Peltz bid materialize, the two slumping burger chains could find themselves the subject of a bidding war. While that would be great for CKE shareholders, what's really interesting are the business possibilities that would open up once one side finally wins.

Suppose, for instance, that Peltz put Wendy's, Arby's, Carl's Jr. and Hardee's all under one umbrella. These chains all operate in a similar niche, slightly upscale of McDonald's (MCD) and Burger King (BKC) -- and in Arby's case with a different menu. It's hard to imagine that Peltz would maintain all three burger brands, and he might well consolidate them under the biggest brand name of the three: Wendy's. Another possible option might be to give the burger brands more variety and healthy menu items by adding Arby's roast-beef items. This could bolster Arby's brand awareness and help the chain -- or it might begin its slow fading away as a stand-alone brand in favor of becoming a menu selection at the burger chains.

Or suppose Lee takes over and puts Carl's and Hardee's in its portfolio with Dunkin' Donuts and Baskin-Robbins. If the burger chains could offer Dunkin's doughnuts for breakfast and B-R ice cream for dessert, they'd have a major point of differentiation that could bring more diners in the door and help them grow average ticket prices.

Under CKE's deal with Lee, the company has until April 6 to review other offers. That leaves the door open for a few more weeks. We'll see if CKE sticks with Lee's original offer, or finds a bid from Peltz -- or another contender -- more appealing. Photo by Flickr user Robert Banh, CC 2.0