UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES  EXCHANGE
    ACT OF 1934

For the quarterly period ended September 26, 2004

                                       OR

( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE
    ACT OF 1934

For the transition period from ______________ to _______________

Commission file number: 1-2207

                             TRIARC COMPANIES, INC.
                            ------------------------
             (Exact name of registrant as specified in its charter)

            Delaware                                             38-0471180
            --------                                             ----------
  (State or other jurisdiction of                            (I.R.S. Employer
   incorporation or organization)                           Identification No.)

  280 Park Avenue, New York, New York                              10017
  -----------------------------------                              -----
(Address of principal executive offices)                         (Zip Code)


                                 (212) 451-3000
                                 --------------
              (Registrant's telephone number, including area code)


              ----------------------------------------------------
              (Former name, former address and former fiscal year,
                          if changed since last report)

     Indicate  by check mark  whether the  registrant  (1) has filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days.

                                                                 (X) Yes ( ) No


     Indicate by check mark whether the registrant is an  accelerated  filer (as
defined in Rule 12b-2 of the Exchange Act).

                                                                 (X) Yes ( ) No

     There were 23,232,306 the registrant's  Class A Common Stock and 41,231,083
the registrant's Class B Common Stock outstanding as of October 29, 2004.


PART I. FINANCIAL INFORMATION
Item 1. Financial Statements.

                     TRIARC COMPANIES, INC. AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS



                                                                                       December 28,          September 26,
                                                                                         2003 (A)                2004
                                                                                         -------                 ----
                                                                                                  (In Thousands)
                                                                                                    (Unaudited)
                                     ASSETS
                                                                                                      
Current assets:
     Cash and cash equivalents.........................................................$   560,510          $   419,087
     Short-term investments............................................................    173,127              167,948
     Receivables  .....................................................................     13,070               28,081
     Inventories.......................................................................      2,416                2,327
     Deferred income tax benefit.......................................................     11,284               11,153
     Prepaid expenses, restricted cash and other current assets........................     12,575                5,323
                                                                                       -----------          -----------
        Total current assets...........................................................    772,982              633,919
Restricted cash equivalents............................................................     32,467               32,866
Investments............................................................................     37,363               66,073
Properties.............................................................................    106,231              104,450
Goodwill ..............................................................................     64,153              123,773
Asset management contracts.............................................................          -               26,615
Other intangible assets................................................................      8,115                9,193
Deferred costs and other assets........................................................     21,654               20,031
                                                                                       -----------          -----------
                                                                                       $ 1,042,965          $ 1,016,920
                                                                                       ===========          ===========

                      LIABILITIES AND STOCKHOLDERS' EQUITY

                                                                                                      
Current liabilities:
     Notes payable.....................................................................$         -          $    16,610
     Current portion of long-term debt.................................................     35,637               36,774
     Accounts payable..................................................................     16,314               13,405
     Accrued expenses and other current liabilities....................................     86,462               80,341
     Current liabilities relating to discontinued operations...........................     24,004               15,499
                                                                                       -----------          -----------
        Total current liabilities......................................................    162,417              162,629
Long-term debt.........................................................................    483,280              455,942
Deferred compensation payable to related parties.......................................     29,144               31,233
Deferred income taxes..................................................................     48,697               25,796
Other liabilities, deferred income and minority interests in consolidated
  subsidiaries.........................................................................     31,821               33,772
Stockholders' equity:
     Class A common stock..............................................................      2,955                2,955
     Class B common stock..............................................................      5,910                5,910
     Additional paid-in capital........................................................    129,572              133,361
     Retained earnings.................................................................    341,642              345,691
     Common stock held in treasury.....................................................   (203,168)            (223,464)
     Deferred compensation payable in common stock.....................................     10,160               43,553
     Accumulated other comprehensive income............................................        535                  754
     Unearned compensation.............................................................          -               (1,212)
                                                                                       -----------          -----------
        Total stockholders' equity.....................................................    287,606              307,548
                                                                                       -----------          -----------
                                                                                       $ 1,042,965          $ 1,016,920
                                                                                       ===========          ===========


(A) Derived from the audited  consolidated  financial  statements as of December
    28, 2003.


                See accompanying notes to condensed consolidated
                              financial statements.


                     TRIARC COMPANIES, INC. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS



                                                                   Three Months Ended            Nine Months Ended
                                                               --------------------------  --------------------------
                                                               September 28, September 26, September 28, September 26,
                                                                   2003         2004           2003          2004
                                                                   ----         ----           ----          ----
                                                                       (In Thousands Except Per Share Amounts)
                                                                                   (Unaudited)
                                                                                                
Revenues:
    Net sales..................................................$  51,093     $  52,324       $150,988       $ 151,709
    Royalties and franchise and related fees...................   23,542        26,721         68,181          73,992
    Asset management and related fees..........................        -         6,915              -           6,915
                                                               ---------     ---------       --------       ---------
                                                                  74,635        85,960        219,169         232,616
                                                               ---------     ---------       --------       ---------
Costs and expenses:
    Cost of sales, excluding depreciation and amortization.....   38,295        40,902        112,139         119,891
    Cost of services, excluding depreciation and amortization..        -         2,042              -           2,042
    Advertising and selling....................................    4,412         3,971         11,555          12,767
    General and administrative, excluding depreciation and
      amortization.............................................   23,402        28,713         70,681          77,495
    Depreciation and amortization, excluding amortization
      of deferred financing costs..............................    3,379         4,804         10,176          11,619
                                                               ---------     ---------       --------       ---------
                                                                  69,488        80,432        204,551         223,814
                                                               ---------     ---------       --------       ---------
           Operating profit....................................    5,147         5,528         14,618           8,802
    Interest expense...........................................  (10,032)       (5,017)       (27,857)        (23,655)
    Insurance expense related to long-term debt................   (1,025)         (934)        (3,163)         (2,883)
    Investment income (loss), net..............................    4,014        (3,730)        10,884           7,439
    Gain (costs) related to proposed business acquisitions not
      consummated..............................................    2,994           (26)         2,064            (793)
    Other income, net..........................................      449           373          1,424           1,901
                                                               ---------     ---------       --------       ---------
           Income (loss) from continuing operations
               before income taxes and minority interests......    1,547        (3,806)        (2,030)         (9,189)
(Provision for) benefit from income taxes......................   (1,052)       15,618           (985)         16,559
Minority interests in (income) loss of consolidated
  subsidiaries.................................................        -          (663)           112            (653)
                                                               ---------     ---------       --------       ---------
           Income (loss) from continuing operations............      495        11,149         (2,903)          6,717
Gain on disposal of discontinued operations....................        -        10,823              -          10,823
                                                               ---------     ---------       --------       ---------
           Net income (loss)...................................$     495     $  21,972       $ (2,903)      $  17,540
                                                               =========     =========       ========       =========

Basic income (loss) per share:
     Class A common stock:
           Continuing operations...............................$     .01     $     .16       $   (.05)      $     .10
           Discontinued operations.............................        -           .16              -             .16
                                                               ---------     ---------       --------       ---------
           Net income (loss)...................................$     .01     $     .32       $   (.05)      $     .26
                                                               =========     =========       ========       =========
     Class B common stock:
           Continuing operations...............................$     .01     $     .18       $   (.05)      $     .11
           Discontinued operations.............................        -           .18              -             .18
                                                               ---------     ---------       --------       ---------
           Net income (loss)...................................$     .01     $     .36       $   (.05)      $     .29
                                                               =========     =========       ========       =========
Diluted income (loss) per share:
     Class A common stock:
           Continuing operations...............................$     .01     $     .16       $   (.05)      $     .09
           Discontinued operations.............................        -           .15              -             .15
                                                               ---------     ---------       --------       ---------
           Net income (loss)...................................$     .01     $     .31       $   (.05)      $     .24
                                                               =========     =========       ========       =========
     Class B common stock:
           Continuing operations...............................$     .01     $     .17       $   (.05)      $     .10
           Discontinued operations.............................        -           .17              -             .17
                                                               ---------     ---------       --------       ---------
           Net income (loss)...................................$     .01     $     .34       $   (.05)      $     .27
                                                               =========     =========       ========       =========


                See accompanying notes to condensed consolidated
                             financial statements.

                     TRIARC COMPANIES, INC. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


                                                                                                   Nine Months Ended
                                                                                           --------------------------------
                                                                                           September 28,      September 26,
                                                                                               2003               2004
                                                                                               ----               ----
                                                                                                   (In Thousands)
                                                                                                     (Unaudited)
                                                                                                      
Cash flows from continuing operating activities:
Net income (loss).......................................................................$     (2,903)       $    17,540
     Adjustments to reconcile net income (loss) to net cash provided by (used in)
       continuing operating activities:
         Operating investment adjustments, net (see below)..............................     (17,647)            51,808
         Depreciation and amortization of properties....................................       9,203              9,833
         Amortization of other intangible assets and certain other items................         973              1,786
         Amortization of deferred financing costs and original issue discount...........       1,666              1,954
         Deferred compensation provision ...............................................       2,740              1,240
         Release of income tax and related interest accruals ...........................           -            (18,934)
         Deferred income tax benefit....................................................        (658)            (3,455)
         Equity in earnings of investee.................................................      (1,025)            (1,724)
         Unfavorable lease liability recognized.........................................      (1,131)            (1,208)
         Deferred vendor incentive recognized...........................................      (1,420)              (438)
         Minority interests in income (loss) of consolidated subsidiaries...............        (112)               653
         Collection of non-current receivables..........................................       1,667                378
         Gain on disposal of discontinued operations....................................           -            (10,823)
         Other, net.....................................................................         606              1,437
         Changes in operating assets and liabilities:
             Increase in receivables....................................................        (485)            (1,292)
             (Increase) decrease in inventories.........................................        (104)                89
             Decrease in prepaid expenses and other current assets......................       1,100                 56
             Decrease in accounts payable and accrued expenses and other current
               liabilities..............................................................      (5,046)            (2,572)
                                                                                        ------------        -----------
                Net cash provided by (used in) continuing operating activities..........     (12,576)            46,328
                                                                                        ------------        -----------
Cash flows from continuing investing activities:
     Investment activities, net (see below).............................................       1,635            (57,352)
     Capital expenditures...............................................................      (3,465)            (7,892)
     Cost (adjustment to cost in 2003) of business acquisitions less cash acquired......        (200)           (93,768)
     Other, net.........................................................................         (62)              (302)
                                                                                        ------------        -----------
                Net cash used in continuing investing activities........................      (2,092)          (159,314)
                                                                                        ------------        -----------
Cash flows from continuing financing activities:
     Repayments of notes and long-term debt.............................................     (34,717)           (26,666)
     Issuance of long-term debt.........................................................     175,000                  -
     Dividends paid  ...................................................................      (4,238)           (13,491)
     Repurchases of common stock for treasury...........................................     (41,700)            (1,381)
     Exercises of stock options.........................................................      10,422             13,354
     Transfers from restricted cash equivalents collateralizing long-term debt..........         127                 65
     Deferred financing costs...........................................................      (6,525)                 -
     Class B common stock distribution costs............................................        (910)                 -
                                                                                        ------------        -----------
                Net cash provided by (used in) continuing financing activities..........      97,459            (28,119)
                                                                                        ------------        -----------
Net cash provided by (used in) continuing operations....................................      82,791           (141,105)
Net cash provided by (used in) discontinued operations..................................       4,767               (318)
                                                                                        ------------        -----------
Net increase (decrease) in cash and cash equivalents....................................      87,558           (141,423)
Cash and cash equivalents at beginning of period........................................     456,388            560,510
                                                                                        ------------        -----------
Cash and cash equivalents at end of period..............................................$    543,946        $   419,087
                                                                                        ============        ===========
Detail of cash flows related to investments:
     Operating investment adjustments, net:
       Proceeds from sales of trading securities........................................$    206,465        $   161,913
       Cost of trading securities purchased.............................................    (220,724)          (114,394)
       Net recognized (gains) losses from trading securities and short positions in
         securities.....................................................................        (372)               832
       Other net recognized (gains) losses, net of other than temporary losses .........      (3,042)             5,267
       Net (accretion of discount) amortization of premium on debt securities...........          26             (1,810)
                                                                                        ------------        -----------
                                                                                        $    (17,647)       $    51,808
                                                                                        =============       ===========
Investing investment activities, net:
       Proceeds from sales and maturities of available-for-sale securities and other
         investments....................................................................$    128,006        $   171,587
       Cost of available-for-sale securities and other investments purchased............    (129,610)          (217,252)
       Proceeds of securities sold short................................................      28,777             19,539
       Payments to cover short positions in securities..................................     (21,720)           (38,493)
       (Increase) decrease in restricted cash collateralizing obligations for short
          positions in securities.......................................................      (3,818)             7,267
                                                                                        ------------        -----------
                                                                                        $      1,635        $   (57,352)
                                                                                        ============        ===========

     See accompanying notes to condensed consolidated financial statements.


                     TRIARC COMPANIES, INC. AND SUBSIDIARIES
              Notes to Condensed Consolidated Financial Statements
                               September 26, 2004
                                  (Unaudited)

(1)   Basis of Presentation

     The accompanying  unaudited condensed  consolidated financial statements of
Triarc  Companies,  Inc.  ("Triarc"  and,  together with its  subsidiaries,  the
"Company")  have been prepared in accordance  with Rule 10-01 of Regulation  S-X
promulgated  by  the  Securities  and  Exchange   Commission  (the  "SEC")  and,
therefore,  do not include all  information  and footnotes  necessary for a fair
presentation  of financial  position,  results of  operations  and cash flows in
conformity with accounting principles generally accepted in the United States of
America.  In the opinion of the Company,  however,  the  accompanying  condensed
consolidated  financial  statements contain all adjustments,  consisting only of
normal  recurring  adjustments,   necessary  to  present  fairly  the  Company's
financial  position as of December 28, 2003 and September 26, 2004,  its results
of operations for the  three-month  and nine-month  periods ended  September 28,
2003 and September 26, 2004 and its cash flows for the nine-month  periods ended
September 28, 2003 and September 26, 2004 (see below).  This information  should
be read in  conjunction  with the  consolidated  financial  statements and notes
thereto included in the Company's Annual Report on Form 10-K for the fiscal year
ended December 28, 2003 (the "Form 10-K").

     The Company reports on a fiscal year consisting of 52 or 53 weeks ending on
the  Sunday   closest  to  December  31.   However,   Deerfield  &  Company  LLC
("Deerfield"),  in which the Company  acquired a 63.6% capital  interest on July
22, 2004 (see Note 3),  reports on a calendar  year  ending on December  31. The
Company's first nine-month  period of fiscal 2003 commenced on December 30, 2002
and ended on September 28, 2003,  with its third quarter  commencing on June 30,
2003. The Company's first nine-month period of fiscal 2004 commenced on December
29, 2003 and ended on September 26, 2004,  with its third quarter  commencing on
June 28,  2004,  except that for each of these  periods,  Deerfield  is included
commencing  July 23, 2004  through its quarter end of September  30,  2004.  The
periods  from June 30,  2003 to  September  28,  2003 and  December  30, 2002 to
September  28, 2003 are  referred to herein as the  three-month  and  nine-month
periods ended September 28, 2003,  respectively.  The periods from June 28, 2004
to September  26, 2004 and December 29, 2003 to September  26, 2004 are referred
herein as the  three-month  and  nine-month  periods  ended  September 26, 2004,
respectively.  Each  quarter  contained  13  weeks  and each  nine-month  period
contained 39 weeks. The effect of including Deerfield in the Company's condensed
consolidated  financial  statements through Deerfield's quarter end of September
30, 2004  instead of the  Company's  quarter end of  September  26, 2004 was not
material.

(2)  Significant Accounting Policies

Stock Based Compensation

     The Company  maintains  several  equity  plans (the "Equity  Plans")  which
collectively  provide or provided for the grant of stock  options,  tandem stock
appreciation  rights and  restricted  shares of the  Company's  common  stock to
certain officers,  other key employees,  non-employee  directors and consultants
and shares of the Company's common stock pursuant to automatic grants in lieu of
annual retainer or meeting attendance fees to non-employee directors.

     The  Company  measures  compensation  costs  for its  employee  stock-based
compensation under the intrinsic value method rather than the fair value method.
Accordingly,  compensation  cost for the Company's  stock options is measured as
the excess,  if any, of the market price of the  Company's  class A common stock
(the "Class A Common  Stock" or "Class A Common  Shares")  and/or class B common
stock,  series 1 (the  "Class B Common  Stock" or "Class B Common  Shares"),  as
applicable,  at the date of grant,  or at any subsequent  measurement  date as a
result of certain types of modifications to the terms of its stock options, over
the amount an employee must pay to acquire the stock. Such amounts are amortized
as  compensation  expense over the vesting  period of the related stock options.
Any  compensation  cost is  recognized  as expense only to the extent it exceeds
compensation expense previously recognized for such stock options.



     A summary  of the effect on net  income  (loss)  and net income  (loss) per
share in each period  presented  as if the fair value method had been applied to
all outstanding and unvested stock options that were granted  commencing January
1, 1995 is as follows (in thousands except per share data):


                                                                  Three Months Ended             Nine Months Ended
                                                             ----------------------------  ----------------------------
                                                             September 28,   September 26, September 28,  September 26,
                                                                 2003           2004          2003           2004
                                                                 ----           ----          ----           ----

                                                                                              
      Net income (loss), as reported.........................$      495     $   21,972    $   (2,903)     $    17,540
      Reversal of stock-based employee compensation expense
        determined under the intrinsic value method included
        in reported net income or loss, net of related income
        taxes................................................       110              -           159              157
      Recognition of total stock-based employee compensation
        expense determined under the fair value method, net
        of related income taxes..............................    (1,297)          (609)       (3,980)          (1,786)
                                                             ----------     ----------     ---------      -----------
      Net income (loss), as adjusted.........................$     (692)    $   21,363     $  (6,724)     $    15,911
                                                             ==========     ==========     =========      ===========

      Net income (loss) per share:
        Class A Common Stock:
           Basic, as reported................................$     .01      $      .32    $     (.05)     $       .26
           Basic, as adjusted................................     (.01)            .31          (.11)             .24
           Diluted, as reported..............................      .01             .31          (.05)             .24
           Diluted, as adjusted..............................     (.01)            .30          (.11)             .22
        Class B Common Stock:
           Basic, as reported................................$     .01      $      .36    $     (.05)     $       .29
           Basic, as adjusted................................     (.01)            .35          (.11)             .27
           Diluted, as reported..............................      .01             .34          (.05)             .27
           Diluted, as adjusted..............................     (.01)            .33          (.11)             .25


     Stock  options   granted  prior  to  a  stock   distribution   (the  "Stock
Distribution")  during the third  quarter of 2003 of two shares of the Company's
Class B Common Stock for each share of the Company's  Class A Common  Stock,  as
adjusted for the Stock Distribution, are each exercisable for one share of Class
A Common Stock and two shares of Class B Common Stock (the  "Package  Options").
Stock options granted  subsequent to the Stock  Distribution are exercisable for
one share of Class A Common  Stock (the "Class A Options") or one share of Class
B Common  Stock (the "Class B Options").  The fair value of these stock  options
granted  under the Equity Plans on the dates of grant were  estimated  using the
Black-Scholes  option  pricing  model  (the  "Black-Scholes   Model")  with  the
following weighted average assumptions for options granted during the nine-month
periods ended September 28, 2003 and September 26, 2004:



                                                                                      Nine Months Ended
                                                                         -------------------------------------------
                                                                         September 28, 2003      September 26, 2004
                                                                         ------------------    ---------------------
                                                                              Package          Class A       Class B
                                                                              Options          Options       Options
                                                                              -------          -------       -------

                                                                                                   
        Risk-free interest rate.......................................        2.90  %          3.96  %       3.87  %
        Expected option life in years.................................           7                7             7
        Expected volatility...........................................        17.5  %          19.6  %       32.7  %
        Dividend yield................................................        None(a)          2.41  %       2.63  %
- ------------------

(a)     The grants of Package Options occurred prior to the commencement in the
        third quarter of 2003 of the payment of quarterly cash dividends.

     The Black-Scholes Model has limitations on its effectiveness including that
it was developed for use in  estimating  the fair value of traded  options which
have no  vesting  restrictions  and are  fully  transferable  and that the model
requires the use of highly subjective assumptions including expected stock price
volatility.  The Company's  stock-based awards to employees have characteristics
significantly  different  from  those  of  traded  options  and  changes  in the
subjective  input  assumptions  can materially  affect the fair value  estimate.
Therefore, in the opinion of the Company, the existing models do not necessarily
provide a reliable single measure of the fair value of its stock-based awards to
employees.

     During the nine-month  period ended September 28, 2003, the Company granted
24,000  Package  Options and during the  nine-month  period ended  September 26,
2004,  the Company  granted  43,000 Class A Options and 239,000  Class B Options
under the Equity Plans at exercise prices equal to the market price of the stock
on the grant dates.  The weighted average grant date fair value of each of these
stock options,  using the  Black-Scholes  Model with the  assumptions  set forth
above,  were  $7.56,  $2.23  and  $3.33,  respectively.

Update  to  Significant Accounting Policies

     As a result of the acquisition of a 63.6% capital interest in Deerfield, an
alternative  asset  manager,  the  Company has  adopted  certain new  accounting
policies.  The  following  disclosure  is  supplemental  to Note 1,  "Summary of
Significant Accounting Policies," in the Form 10-K.

      Principles of Consolidation

     The condensed  consolidated  financial  statements  include the accounts of
Deerfield with minority interests commencing July 23, 2004.

      Short-Term Investments

     Deerfield holds  investments in preferred shares of several  collateralized
debt  obligation  instruments  ("CDOs") for which it is the collateral  manager.
Such  investments are considered  financial assets subject to prepayment and are
therefore  accounted  for  similar  to debt  securities  and are  classified  as
"available-for-sale"  securities.  Interest  income is accreted on the preferred
shares over the respective lives of the CDOs using the effective yield method.

      Revenue Recognition

     Asset  management  and  related  fees  consist  of the  following  types of
revenues  generated  by  Deerfield  in its  capacity as the trading  manager for
various  investment funds and private  investment  accounts  (collectively,  the
"Funds") and as the collateral  manager for various CDOs:  (1) management  fees,
(2) incentive fees and (3) other related fees. Management fees are recognized as
revenue when the management  services have been performed for the period and all
contingencies  have been resolved,  including the generation of sufficient  cash
flows by the CDOs to pay the fees  under  the  terms of the  related  management
agreements.  Incentive fees are based upon the performance of the Funds and CDOs
and are  recognized as revenues when the amounts  become fixed and  determinable
upon the  close of a  performance  period  for the Funds or the  achievement  of
performance   targets  for  the  CDOs.  Other  related  fees  primarily  include
structuring  and warehousing  fees earned by Deerfield for services  provided to
CDOs and are  recognized as revenues upon the rendering of such services and the
closing of the respective CDO.

(3)  Business Acquisition

     On July 22, 2004 the Company  completed the  acquisition of a 63.6% capital
interest in Deerfield  (the  "Deerfield  Acquisition")  for an aggregate cost of
$94,782,000,  consisting  of  payments  of  $86,532,000  to  selling  owners and
estimated  expenses of $8,250,000,  including  expenses  reimbursed to a selling
owner.   Deerfield,   through  its  wholly-owned  subsidiary  Deerfield  Capital
Management  LLC, is an  alternative  asset  manager  offering a diverse range of
fixed income and credit-related strategies to institutional investors. Deerfield
currently  provides asset management  services for CDOs and Funds but may expand
its  services  into  other  types of  investments.  As of  September  26,  2004,
Deerfield has over $8 billion of assets under management, consisting principally
of CDOs and, to a much lesser  extent,  Funds.  Deerfield  represents a business
segment of the Company (see Note 12).

     The following table (1) summarizes on a preliminary basis the allocation of
the purchase price of Deerfield to the assets acquired and  liabilities  assumed
in the Deerfield  Acquisition  and remains  subject to  finalization  due to the
recent date of the  acquisition  and (2) provides a  reconciliation  to "Cost of
business  acquisitions  less  cash  acquired"  in  the  accompanying   condensed
consolidated statement of cash flows (in thousands):


                                                                                                   As of
                                                                                               July 22, 2004
                                                                                               -------------
                                                                                             
         Current assets.........................................................................$   30,877
         Restricted cash equivalents............................................................       400
         Investments............................................................................        49
         Properties.............................................................................       739
         Goodwill...............................................................................    59,620
         Asset management contracts.............................................................    27,199
         Other intangible assets................................................................     1,394
         Other assets...........................................................................       590
                                                                                                ----------
               Total assets acquired............................................................   120,868
                                                                                                ----------
         Current liabilities....................................................................    24,039
         Deferred income and minority interests in Deerfield....................................     2,047
                                                                                                ----------
               Total liabilities assumed........................................................    26,086
                                                                                                ----------
                     Net assets acquired........................................................    94,782
         Less cash acquired.....................................................................     1,014
                                                                                                ----------
         Cost of business acquisitions less cash acquired.......................................$   93,768
                                                                                                ==========


     The Deerfield  Acquisition resulted in $59,620,000 of goodwill,  which will
be fully  deductible  for income tax purposes  and was assigned  entirely to the
Company's new asset  management  business  segment.  Such goodwill  reflects the
substantial value of Deerfield's  historically  profitable  investment  advisory
brand and the  Company's  expectation  of being able to grow  Deerfield's  asset
management  portfolio thereby increasing its asset management fee revenues.  All
of the acquired identifiable  intangible assets,  aggregating  $28,593,000,  are
amortizable and principally include (1) asset management  contracts for Funds of
$14,946,000,  (2) asset management contracts for CDOs of $12,253,000,  (3) asset
management computer software systems of $890,000 and (4) non-compete  agreements
of $413,000.  Each of those amounts  represents the Company's  63.6% interest in
the fair value of the respective  intangible  asset, as determined in accordance
with a preliminary  independent appraisal.  The acquired identifiable intangible
assets have a weighted  average  amortization  period of approximately 11 years,
reflecting a weighted average of approximately 12 years for the asset management
contracts and approximately 4 years for the other intangible assets.

     Deerfield's results of operations,  less applicable minority interests, and
cash flows  subsequent  to the July 22, 2004 date of the  Deerfield  Acquisition
through  September  30, 2004 have been  included in the  accompanying  condensed
consolidated  statements of operations  and cash flows for the  three-month  and
nine-month periods ended September 26, 2004.

     The  following   supplemental  pro  forma  condensed  consolidated  summary
operating  data (the "As Adjusted  Data") of the Company for each of the periods
presented herein has been prepared by adjusting the historical data as set forth
in the  accompanying  condensed  consolidated  statements  of operations to give
effect to the  Deerfield  Acquisition  as if it had been  consummated  as of the
beginning of each respective period (in thousands except per share amounts):



                                                                              Three Months Ended
                                                             -------------------------------------------------------
                                                                September 28, 2003             September 26, 2004
                                                             --------------------------    -------------------------
                                                             As Reported    As Adjusted    As Reported   As Adjusted
                                                             -----------    -----------    -----------   -----------

                                                                                             
      Revenues...............................................$    74,635   $   81,367    $    85,960     $    87,476
      Operating profit.......................................      5,147        5,192          5,528           4,605
      Income from continuing operations......................        495          154         11,149          10,695
      Net income.............................................        495          154         21,972          21,518
      Basic income per share:
        Class A Common Stock:
           Continuing operations.............................        .01            -            .16             .15
           Net income........................................        .01            -            .32             .31
        Class B Common Stock:
           Continuing operations.............................        .01            -            .18             .17
           Net income........................................        .01            -            .36             .35
      Diluted income per share:
        Class A Common Stock:
           Continuing operations.............................        .01            -            .16             .15
           Net income........................................        .01            -            .31             .30
        Class B Common Stock:
           Continuing operations.............................        .01            -            .17             .17
           Net income........................................        .01            -            .34             .33




                                                                                Nine Months Ended
                                                             -------------------------------------------------------
                                                                September 28, 2003             September 26, 2004
                                                             --------------------------    -------------------------
                                                             As Reported    As Adjusted    As Reported   As Adjusted
                                                             -----------    -----------    -----------   -----------

                                                                                             
      Revenues...............................................$   219,169   $  241,097    $   232,616     $   260,135
      Operating profit.......................................     14,618       15,332          8,802          15,990
      Income (loss) from continuing operations...............     (2,903)      (3,475)         6,717           8,902
      Net income (loss)......................................     (2,903)      (3,475)        17,540          19,725
      Basic income (loss) per share:
        Class A Common Stock:
           Continuing operations..........................          (.05)        (.06)           .10             .13
           Net income (loss).................................       (.05         (.06)           .26             .29
        Class B Common Stock:
           Continuing operations............................        (.05)        (.06)           .11             .15
           Net income (loss)................................        (.05)        (.06)           .29             .33
      Diluted income (loss) per share:
        Class A Common Stock:
           Continuing operations..........................          (.05)        (.06)           .09             .12
           Net income (loss)................................        (.05)        (.06)           .24             .28
        Class B Common Stock:
           Continuing operations............................        (.05)        (.06)           .10             .14
           Net income (loss).................................       (.05)        (.06)           .27             .31


     This As Adjusted Data is presented for  comparative  purposes only and does
not purport to be indicative of the Company's  actual  results of operations had
the Deerfield  Acquisition actually been consummated as of the beginning of each
of the respective  periods presented above or of the Company's future results of
operations.

     Deerfield granted  membership  interests in future profits effective August
20,  2004 (the  "Profit  Interests")  to  certain  of its key  personnel,  which
effectively  increased  the  minority  interests  in any  profits  of  Deerfield
subsequent to August 19, 2004 by 2.1% to 38.5% from 36.4%.  The  estimated  fair
value at the  date of  grant of the  Profit  Interests,  in  accordance  with an
independent  appraisal,  was  $2,050,000,  which resulted in aggregate  unearned
compensation  of  $1,260,000,  net of minority  interests,  being charged to the
"Unearned  compensation"  component  of  "Stockholders  equity"  with  an  equal
offsetting  increase  in  "Additional  paid-in  capital."  The vesting of Profit
Interests  varies by employee  either vesting ratably in each of the three years
ended August 20, 2007,  2008, and 2009 or 100% on August 20, 2007.  Accordingly,
this unearned  compensation is being amortized as compensation expense as earned
over periods of three or five years.

     The  Company  owns 63.6% of the capital  interests  and 61.5% of the Profit
Interests in Deerfield.  The remaining economic interests in Deerfield are owned
by executives of Deerfield or their  affiliates.  Commencing  July 22, 2009, the
Company will have certain rights to acquire the economic  interests of Deerfield
owned by two of its executives,  which aggregate 35.5% of the capital  interests
and 34.3% of the Profit Interests. In addition,  commencing July 22, 2007, those
two executives  will have certain rights to require the Company to acquire their
economic  interests.  In each case,  the rights are generally  exercisable  at a
price equal to the then current fair market value of those interests.

     In connection with the Deerfield Acquisition, the Company also committed to
invest  $100,000,000  to seed a new  multi-strategy  hedge fund to be managed by
Deerfield.  Such fund was established and the $100,000,000 was funded in October
2004. The fund will  initially be accounted for as a consolidated  subsidiary of
the  Company,  with  minority  interests to the extent of  third-party  investor
participation, commencing in the quarter ending January 2, 2005.

(4)  Comprehensive Income (Loss)

     The  following  is a summary  of the  components  of  comprehensive  income
(loss), net of income taxes and minority interests (in thousands):



                                                                 Three Months Ended             Nine Months Ended
                                                             ----------------------------  ---------------------------
                                                             September 28,  September 26,  September 28, September 26,
                                                                 2003           2004           2003          2004
                                                                 ----           ----           ----          ----

                                                                                              
      Net income (loss).......................................$      495    $   21,972      $  (2,903)    $   17,540
      Unrealized gains (losses) on available-for sale
        securities (see below)................................      (202)        1,053         (1,105)           207
      Net change in currency translation adjustment...........        (4)           21              8             12
                                                              ----------    ----------      ---------     ----------
      Comprehensive income (loss).............................$      289    $   23,046      $  (4,000)    $   17,759
                                                              ==========    ==========      =========     ==========

     The  following is a summary of the  components of the  unrealized  gains or
losses on  available-for-sale  securities included in other comprehensive income
(loss) (in thousands):


                                                                 Three Months Ended              Nine Months Ended
                                                             ----------------------------  ----------------------------
                                                             September 28,  September 26,  September 28,  September 26,
                                                                 2003           2004           2003           2004
                                                                 ----           ----           ----           ----
                                                                                              
      Unrealized holding gains (losses) arising during the
        period................................................$     (311)   $      604      $  (1,835)    $        415
      Reclassification of prior period net unrealized holding
        (gains) losses included in net income or loss.........        (7)        1,006            105             (118)
                                                              ----------    ----------      ---------     ------------
                                                                    (318)        1,610         (1,730)             297
      Equity in change in unrealized gain on a retained
        interest..............................................        (4)            -            (20)              (2)
      Equity in change in unrealized gain on available-for-
        sale securities.......................................         3            (2)             -               (1)
      Income tax benefit (provision)..........................       117          (599)           645             (131)
      Minority interests in a consolidated subsidiary.........         -            44              -               44
                                                              ----------    ----------      ---------     ------------
                                                              $     (202)   $    1,053      $  (1,105)    $        207
                                                              ==========    ==========      =========     ============


(5)  Income (Loss) Per Share

     Basic income  (loss) per share has been  computed by dividing the allocated
income or loss for the Company's  Class A Common Stock and the Company's Class B
Common  Stock by the  weighted  average  number of shares  of each  class.  Both
factors are  presented in the table  below.  Income for the  three-month  period
ended  September 28, 2003 and the three and nine-month  periods ended  September
26,  2004 was  allocated  between  the Class A Common  Shares and Class B Common
Shares based on the actual dividend payment ratio to the extent of any dividends
paid during the period with any excess  allocated  giving  effect to the current
minimum stated dividend participation rate of 110% for the Class B Common Shares
compared with the Class A Common Shares.  Losses for the nine-month period ended
September  28, 2003 were  allocated  equally  among each share of Class A Common
Stock and Class B Common  Stock,  resulting  in the same loss per share for each
class.  The weighted  average number of shares includes the effect of the shares
held in the additional  deferred  compensation  trusts which are not reported as
outstanding shares for financial statement purposes (see Note 10).

     Diluted  income per share for the  three-month  period ended  September 28,
2003 and the three and  nine-month  periods  ended  September  26, 2004 has been
computed  by dividing  the  allocated  income for the Class A Common  Shares and
Class B Common  Shares by the  weighted  average  number of shares of each class
plus the potential common share effects on each class of dilutive stock options,
computed using the treasury stock method,  as presented in the table below.  The
shares used to calculate  diluted income per share for those periods exclude any
effect of the Company's  $175,000,000 of 5% convertible  notes (the "Convertible
Notes")  which  would  have been  antidilutive.  Diluted  loss per share for the
nine-month  period ended September 28, 2003 was the same as basic loss per share
for each of the Class A and Class B Common  Shares since the Company  reported a
net loss for this period and, therefore,  the effect of all potentially dilutive
securities on the loss per share would have been antidilutive.

     The only remaining  Company  securities as of September 26, 2004 that could
dilute basic income per share for periods  subsequent  to September 26, 2004 are
(1) outstanding  stock options which are exercisable  into 4,116,000  shares and
8,590,000 shares of the Company's Class A Common Stock and Class B Common Stock,
respectively, and (2) the Convertible Notes which are convertible into 4,375,000
shares and 8,750,000  shares of the  Company's  Class A Common Stock and Class B
Common Stock, respectively.

     Income (loss) per share has been computed by allocating  the income or loss
as follows (in thousands):


                                                                 Three Months Ended              Nine Months Ended
                                                            -----------------------------  ----------------------------
                                                            September 28,   September 26,  September 28,  September 26,
                                                                2003            2004           2003           2004
                                                                ----            ----           ----           ----
                                                                                              
      Class A Common Shares:
        Continuing operations...............................$       150      $   3,728    $     (968)     $    2,149
        Discontinued operations.............................          -          3,666             -           3,539
                                                            -----------      ---------    ----------      ----------
        Net income (loss)...................................$       150      $   7,394    $     (968)     $    5,688
                                                            ===========      =========    ==========      ==========

      Class B Common Shares:
        Continuing operations...............................$       345      $   7,421    $   (1,935)     $    4,568
        Discontinued operations.............................          -          7,157             -           7,284
                                                            -----------      ---------    ----------      ----------
        Net income (loss)...................................$       345      $  14,578    $   (1,935)     $   11,852
                                                            ===========      =========    ==========      ==========

     The number of shares used to  calculate  basic and  diluted  loss per share
were as follows (in thousands):


                                                                 Three Months Ended              Nine Months Ended
                                                            -----------------------------  ----------------------------
                                                            September 28,   September 26,  September 28,  September 26,
                                                                2003            2004          2003           2004
                                                                ----            ----          ----           ----
                                                                                                  
      Class A Shares:
        Weighted average shares
             Outstanding....................................     19,267         21,736        19,862          20,834
             Held in deferred compensation trusts...........        361          1,408           210             984
                                                            -----------      ---------    ----------      ----------
        Basic shares........................................     19,628         23,144        20,072          21,818
             Dilutive effect of stock options...............      1,585            851             -           1,240
                                                            -----------      ---------    ----------      ----------
        Diluted shares......................................     21,213         23,995        20,072          23,058
                                                            ===========      =========    ==========      ==========

      Class B Shares:
        Weighted average shares
             Outstanding....................................     38,534         38,241        39,724          38,662
             Held in deferred compensation trusts...........        722          2,816           420           1,967
                                                            -----------      ---------    ----------      ----------
        Basic shares........................................     39,256         41,057        40,144          40,629
             Dilutive effect of stock options...............      3,170          1,703             -           2,479
                                                            -----------      ---------    ----------      ----------
        Diluted shares......................................     42,426         42,760        40,144          43,108
                                                            ===========      =========    ==========      ==========

(6)  Capital Stock

     In June 2004 the Company  increased its authorized shares of Class B Common
Stock from 100,000,000 shares to 150,000,000 shares.

(7)  Income Taxes

     During the quarter ended  September 26, 2004, the Internal  Revenue Service
(the "IRS")  finalized  its  examination  of the  Company's  Federal  income tax
returns for the years ended  December  31, 2000 and  December  30, 2001  without
asserting any  additional  income tax  liability.  Also during the quarter ended
September 26, 2004, a state income tax examination was finalized and the statute
of limitations for examinations of certain state income tax returns expired.  In
connection  with these matters,  the Company  determined  that it had income tax
reserves and related interest accruals that were no longer required and released
(1)  $25,415,000  of income tax  reserves,  of which  $14,592,000  increased the
"Benefit  from  income  taxes"  and  $10,823,000  was  reported  as the "Gain on
disposal of discontinued operations" (see Note 8), and (2) $4,342,000 of related
interest  accruals  as a reduction  of  "Interest  expense" in the  accompanying
condensed  consolidated   statements  of  operations  for  the  three-month  and
nine-month  periods ended  September 26, 2004. The Company's  Federal income tax
returns  subsequent to December 30, 2001 are not currently under  examination by
the  IRS  although   certain  state  income  tax  returns  are  currently  under
examination. However, management of the Company believes that adequate aggregate
provisions  have  been  made in prior  periods  for any  liabilities,  including
interest, that may result from any such examination(s).

(8)  Discontinued Operations

     Prior to 2003 the Company  sold (1) the stock of the  companies  comprising
the  Company's  former  premium  beverage  and soft drink  concentrate  business
segments  (the  "Beverage  Discontinued  Operations"),  (2)  the  stock  or  the
principal  assets of the companies  comprising  the former utility and municipal
services  and  refrigeration   business   segments  (the  "SEPSCO   Discontinued
Operations") of SEPSCO, LLC, a subsidiary of the Company,  and (3) substantially
all of its  interests  in a  partnership  and a  subpartnership  comprising  the
Company's   former   propane   business   segment  (the  "Propane   Discontinued
Operations").  There remain certain obligations not transferred to the buyers of
the Beverage,  SEPSCO and Propane Discontinued Operations to be liquidated.  The
Beverage,  SEPSCO and Propane Discontinued Operations have been accounted for as
discontinued operations by the Company.

     During the  three-month  period  ended  September  26,  2004,  the  Company
recorded additional gain on the disposal of the Beverage Discontinued Operations
of $10,823,000  resulting from the release of income tax reserves related to the
discontinued  operations  which were no longer required upon the finalization of
the examination of the Company's  Federal income tax returns for the years ended
December  31, 2000 and December  30, 2001 and the  expiration  of the statute of
limitations with respect to examining  certain of the Company's state income tax
returns.

     Current liabilities  relating to the discontinued  operations  consisted of
the following (in thousands):



                                                                                         December 28,    September 26,
                                                                                             2003            2004
                                                                                             ----            ----
                                                                                                    
      Accrued expenses, including accrued income taxes, of the Beverage
        Discontinued Operations.........................................................$     22,460      $    14,095
      Liabilities relating to the SEPSCO and the Propane Discontinued Operations........       1,544            1,404
                                                                                        ------------      -----------
                                                                                        $     24,004      $    15,499
                                                                                        ============      ===========

     The Company  expects that the  liquidation of these  remaining  liabilities
associated with all of these discontinued  operations will not have any material
adverse impact on its financial position or results of operations. To the extent
any  estimated  amounts  included  in the  current  liabilities  relating to the
discontinued  operations  are  determined to be in excess of the  requirement to
liquidate  the  associated  liability,  any such excess will be released at that
time as a component of gain or loss on disposal of discontinued operations.

(9)  Retirement Benefit Plans

     The Company  maintains two defined benefit plans,  the benefits under which
were frozen in 1992.  After  recognizing  a  curtailment  gain upon freezing the
benefits,  the Company has no  unrecognized  prior service cost related to these
plans. The measurement date used by the Company in determining the components of
pension expense is December 31.

     The  components  of the net periodic  pension cost  incurred by the Company
with respect to these plans are as follows (in thousands):



                                                                   Three Months Ended             Nine Months Ended
                                                             ------------------------------ -----------------------------
                                                             September 28,    September 26, September 28,   September 26,
                                                                 2003             2004          2003            2004
                                                                 ----             ----          ----            ----

                                                                                              
      Service cost (consisting entirely of plan expenses)......$       21    $      23    $       63      $       68
      Interest cost............................................        63           61           187             182
      Expected return on the plans' assets.....................       (67)         (71)         (199)           (213)
      Amortization of unrecognized net loss....................        16            8            50              24
                                                               ----------    ---------    ----------      ----------
      Net periodic pension cost................................$       33    $      21    $      101      $       61
                                                               ==========    =========    ==========      ==========


     The Company  currently  expects to contribute an aggregate  $264,000 to its
two defined  benefit  plans for all of 2004, of which  $203,000 was  contributed
during the nine-month period ended September 26, 2004.

(10)  Transactions with Related Parties

     Prior to 2003 the Company provided  incentive  compensation of $22,500,000,
in the aggregate,  to the Chairman and Chief Executive Officer and President and
Chief Operating Officer of the Company (the "Executives")  which was invested in
two deferred compensation trusts (the "Deferred  Compensation Trusts") for their
benefit.   Deferred  compensation  expense  of  $2,740,000  and  $1,239,000  was
recognized in the nine-month  periods ended September 28, 2003 and September 26,
2004,  respectively,  for increases in the fair value of the  investments in the
Deferred  Compensation Trusts. Under accounting principles generally accepted in
the United States of America,  the Company is permitted to recognize  investment
income for any  interest  or  dividend  income on  investments  in the  Deferred
Compensation  Trusts and realized  gains on sales of investments in the Deferred
Compensation  Trusts,  but is unable to  recognize  any  investment  income  for
unrealized  increases  in the fair  value  of the  investments  in the  Deferred
Compensation  Trusts because these  investments are accounted for under the cost
method of accounting.  Accordingly, the Company recognized net investment income
from  investments in the Deferred  Compensation  Trusts of $592,000 and $563,000
during the nine-month  periods ended  September 28, 2003 and September 26, 2004,
respectively.  Such net investment  income during the  nine-month  periods ended
September 28, 2003 and September 26, 2004  consisted of realized  gains from the
sale of certain cost-method  investments in the Deferred  Compensation Trusts of
$744,000  and  $828,000,  respectively,  which  included  increases  in value of
$513,000 and $777,000 prior to the nine-month  periods ended  September 28, 2003
and September 26, 2004, respectively, and interest income of $5,000 and $11,000,
respectively,  less  management  fees of $157,000  and  $276,000,  respectively.
Recognized   gains,   interest  income  and  investment  fees  are  included  in
"Investment income (loss), net" and deferred compensation expense is included in
"General and  administrative,  excluding  depreciation and  amortization" in the
accompanying  condensed consolidated  statements of operations.  As of September
26, 2004, the obligation to the Executives related to the Deferred  Compensation
Trusts is  $30,383,000  and is included  in  "Deferred  compensation  payable to
related parties" in the accompanying  condensed  consolidated balance sheets. As
of September 26, 2004, the assets in the Deferred  Compensation Trusts consisted
of $22,196,000  included in "Investments," which does not reflect the unrealized
increase in the fair value of the investments,  and $1,861,000 included in "Cash
and cash equivalents" in the accompanying  condensed consolidated balance sheet.
The  cumulative  disparity  between (1)  deferred  compensation  expense and net
recognized  investment  income and (2) the  obligation to the Executives and the
carrying value of the assets in the Deferred Compensation Trusts will reverse in
future periods as either (1) additional investments in the Deferred Compensation
Trusts are sold and  previously  unrealized  gains are  recognized  without  any
offsetting  increase  in  compensation  expense  or (2) the fair  values  of the
investments  in the  Deferred  Compensation  Trusts  decrease  resulting  in the
recognition of a reversal of compensation  expense without any offsetting losses
recognized in investment income.

     During the nine months ended  September 26, 2004, the Executives  exercised
an aggregate  2,850,000  Package Options (see Note 2) under the Company's Equity
Plans and paid the exercise  prices  utilizing  shares of the Company's  Class B
Common  Stock  received  by  the   Executives  in  connection   with  the  Stock
Distribution and effectively owned by the Executives for more than six months at
the dates the options  were  exercised.  These  exercises  resulted in aggregate
deferred  gains to the Executives of  $33,393,000,  represented by an additional
1,047,450  Class A Common Shares and  2,094,887  shares of Class B Common Shares
based on the market  prices at the date of exercise.  Such shares are being held
in  two  additional  deferred  compensation  trusts  (the  "Additional  Deferred
Compensation  Trusts").  The resulting  obligation of $33,393,000 is included in
the "Deferred  compensation payable in common stock" component of "Stockholders'
equity" in the accompanying condensed consolidated balance sheet as of September
26, 2004.  The  Executives  had  previously  elected to defer the receipt of the
shares held in the Additional Deferred Compensation Trusts until no earlier than
January 2, 2005 and,  during the 2004 second  quarter,  elected to further defer
the receipt of these  shares  until no earlier  than  January 2, 2008.  The cash
equivalents  funded  from  cumulative  dividends  paid  on  shares  held  by the
Additional  Deferred  Compensation  Trusts of $850,000 are included in "Cash and
cash   equivalents,"  and  the  related  obligation  is  included  in  "Deferred
compensation   payable  to  related  parties"  in  the  accompanying   condensed
consolidated balance sheet as of September 26, 2004.

     In accordance  with an employment  agreement with an executive of Deerfield
who is also a director of the Company, Deerfield incurred and paid $59,000 to an
entity of which the  executive is the  principal  owner to  reimburse  operating
expenses  for the usage of an airplane  during the period from the July 22, 2004
date of the Deerfield  Acquisition  through Deerfield's quarter end of September
30, 2004.

     The Company continues to have additional  related party transactions of the
same  nature  and  general  magnitude  as  those  described  in  Note  23 to the
consolidated financial statements contained in the Form 10-K.

(11) Legal and Environmental Matters

     In  2001,  a vacant  property  owned by  Adams  Packing  Association,  Inc.
("Adams"),  an  inactive  subsidiary  of the  Company,  was listed by the United
States  Environmental  Protection  Agency  on  the  Comprehensive  Environmental
Response,  Compensation  and Liability  Information  System  ("CERCLIS") list of
known or suspected  contaminated sites. The CERCLIS listing appears to have been
based on an allegation  that a former tenant of Adams  conducted  drum recycling
operations  at the site from some time prior to 1971 until the late 1970's.  The
business operations of Adams were sold in December 1992. In February 2003, Adams
and the Florida Department of Environmental  Protection (the "FDEP") agreed to a
consent  order  that  provided  for  development  of a  work  plan  for  further
investigation   of  the  site  and  limited   remediation   of  the   identified
contamination.  In May 2003, the FDEP approved the work plan submitted by Adams'
environmental consultant and, as of September 26, 2004, the work at the site has
been completed.  Adams submitted its contamination assessment report to the FDEP
in March 2004. In August 2004, the FDEP agreed to a monitoring  plan  consisting
of two sampling  events after which it will  reevaluate  the need for additional
assessment or  remediation.  Based on  provisions of $1,667,000  for those costs
made prior to 2003, and after taking into  consideration  various legal defenses
available to the Company,  including Adams,  Adams has provided for its estimate
of its remaining liability for completion of this matter.

     In 1998,  a number of class  action  lawsuits  were  filed on behalf of the
Company's stockholders.  Each of these actions named the Company, the Executives
and other members of the Company's  board of directors as  defendants.  In 1999,
certain  plaintiffs  in these  actions filed a  consolidated  amended  complaint
alleging that the Company's  tender offer  statement filed with the SEC in 1999,
pursuant to which the Company repurchased 3,805,015 shares of its Class A Common
Stock for $18.25 per share, failed to disclose material information. The amended
complaint seeks, among other relief,  monetary damages in an unspecified amount.
In 2000, the plaintiffs  agreed to stay this action pending  determination  of a
related stockholder action which was subsequently  dismissed in October 2002 and
is no longer being appealed.  Through  September 26, 2004, no further action has
occurred  with respect to the  remaining  class  action  lawsuit and such action
remains stayed.

     In addition to the environmental  matter and stockholder  lawsuit described
above, the Company is involved in other litigation and claims  incidental to its
current and prior businesses.  Triarc and its subsidiaries have reserves for all
of their legal and environmental matters aggregating  $1,800,000 as of September
26,  2004.  Although  the  outcome  of such  matters  cannot be  predicted  with
certainty  and some of these  matters  may be  disposed  of  unfavorably  to the
Company,  based on currently  available  information,  including  legal defenses
available  to Triarc  and/or  its  subsidiaries,  and  given the  aforementioned
reserves,  the  Company  does not  believe  that the  outcome  of such legal and
environmental  matters will have a material  adverse effect on its  consolidated
financial position or results of operations.

(12) Business Segments

     As a result of the  Deerfield  Acquisition,  the  Company  now  manages and
internally  reports its operations as two business  segments:  (1) the operation
and  franchising  of  restaurants  and (2) asset  management  (see Note 3).  The
Company  evaluates  segment  performance  and allocates  resources based on each
segment's  earnings  before  interest,   taxes,  depreciation  and  amortization
("EBITDA"). Information concerning the segments in which the Company operates is
shown in the table  below.  EBITDA has been  computed as  operating  profit plus
depreciation  and  amortization,  excluding  amortization of deferred  financing
costs  ("Depreciation and Amortization").  Operating profit has been computed as
revenues less  operating  expenses.  In computing  EBITDA and operating  profit,
interest expense and non-operating income and expenses have not been considered.
Identifiable  assets by segment are those assets that are used in the  Company's
operations in each segment.  General  corporate assets consist primarily of cash
and cash equivalents, short-term and non-current investments and properties.

     The  following  is a  summary  of the  Company's  segment  information  (in
thousands):


                                                               Three Months Ended                Nine Months Ended
                                                          ----------------------------    -----------------------------
                                                          September 28, September 26,      September 28,  September 26,
                                                              2003          2004               2003          2004
                                                              ----          ----               ----          ----
                                                                                              
      Revenues:
          Restaurants......................................$    74,635   $    79,045     $    219,169     $    225,701
          Asset management.................................          -         6,915                -            6,915
                                                           -----------   -----------     ------------     ------------
          Consolidated revenues............................$    74,635   $    85,960     $    219,169     $    232,616
                                                           ===========   ===========     ============     ============
      EBITDA:
          Restaurants......................................$    18,689   $    20,837     $     57,106     $     52,047
          Asset management.................................          -           964                -              964
          General corporate................................    (10,163)      (11,469)         (32,312)         (32,590)
                                                           -----------   -----------     ------------     ------------
          Consolidated EBITDA..............................      8,526        10,332           24,794           20,421
                                                           -----------   -----------     ------------     ------------
      Less Depreciation and Amortization:
          Restaurants......................................      1,994         2,640            6,051            6,988
          Asset management.................................          -           836                -              836
          General corporate................................      1,385         1,328            4,125            3,795
                                                           -----------   -----------     ------------     ------------
          Consolidated Depreciation and Amortization.......      3,379         4,804           10,176           11,619
                                                           -----------     ---------     ------------     ------------
      Operating profit:
          Restaurants......................................     16,695        18,197           51,055           45,059
          Asset management.................................          -           128                -              128
          General corporate................................    (11,548)      (12,797)         (36,437)         (36,385)
                                                           -----------   -----------     ------------     ------------
          Consolidated operating profit....................      5,147         5,528           14,618            8,802
      Interest expense.....................................    (10,032)       (5,017)         (27,857)         (23,655)
      Insurance expense related to long-term debt..........     (1,025)         (934)          (3,163)          (2,883)
      Investment income (loss), net........................      4,014        (3,730)          10,884            7,439
      Gain (costs) related to proposed business
        acquisitions not consummated.......................      2,994           (26)           2,064             (793)
      Other income, net....................................        449           373            1,424            1,901
                                                           -----------   -----------     ------------     ------------
      Consolidated income (loss) from continuing
        operations before income taxes and minority
        interests..........................................$     1,547   $    (3,806)    $     (2,030)    $     (9,189)
                                                           ===========   ===========     ============     ============





                                                                                          December 28,    September 26,
                                                                                              2003            2004
                                                                                              ----            ----
                                                                                                    
      Identifiable assets:
        Restaurants......................................................................$    209,167     $    207,979
        Asset management.................................................................           -          123,918
        General corporate................................................................     833,798          685,023
                                                                                         ------------     ------------
        Consolidated total assets........................................................$  1,042,965     $  1,016,920
                                                                                         ============     ============


Item 2. Management's  Discussion and Analysis of Financial Condition and Results
        of Operations

Introduction and Executive Overview

     This  "Management's  Discussion  and  Analysis of Financial  Condition  and
Results of Operations" of Triarc  Companies,  Inc., which we refer to as Triarc,
and its  subsidiaries  should  be  read in  conjunction  with  the  accompanying
condensed consolidated financial statements and "Item 7. Management's Discussion
and Analysis of Financial  Condition  and Results of  Operations"  in our Annual
Report on Form 10-K for the fiscal year ended  December 28, 2003.  Item 7 of our
2003 Form 10-K describes our contractual  obligations and the application of our
critical  accounting  policies.  There  have been no  significant  changes as of
September 26, 2004 pertaining to these topics.  Certain statements we make under
this Item 2 constitute "forward-looking statements" under the Private Securities
Litigation  Reform Act of 1995.  See  "Special  Note  Regarding  Forward-Looking
Statements and Projections" in "Part II - Other Information" preceding "Item 1."

     On July 22, 2004 we completed the  acquisition of a 63.6% capital  interest
in  Deerfield  &  Company  LLC in a  transaction  we refer  to as the  Deerfield
Acquisition.  Deerfield,  through its wholly-owned  subsidiary Deerfield Capital
Management  LLC, is an  alternative  asset  manager  offering a diverse range of
fixed income and  credit-related  strategies to institutional  investors.  As of
September 26, 2004,  Deerfield  has over $8 billion of assets under  management,
consisting of (1) collateralized debt obligation instruments,  which we refer to
as CDOs, and (2) to a much lesser extent,  fixed income and investment funds and
private  investment  accounts,  which  we refer to as  Funds.  Our  consolidated
results of operations include Deerfield's results commencing July 23, 2004, with
applicable minority interests.

     We  operate  in  the  restaurant   business   through  our  franchised  and
Company-owned Arby's restaurants and, as a result of the Deerfield  Acquisition,
in the asset management business. In our restaurant business, we derive revenues
in the form of royalties  and  franchise  and related fees and from sales by our
Company-owned restaurants. While over 60% of our existing royalty agreements and
all of our new  domestic  royalty  agreements  provide  for  royalties  of 4% of
franchise revenues,  our average royalty rate was 3.5% for the nine months ended
September 26, 2004. In our asset management business,  we derive revenues in the
form of asset  management and related fees from our management of CDOs and Funds
and we may expand our services into other types of investments.  We also derived
investment income or loss throughout the periods presented  principally from the
investment of our excess cash.

     We intend to enhance the value of our company by increasing the revenues of
the Arby's restaurant business and our newly acquired asset management business.
In April  2004,  we began  adding new Arby's menu items such as salads and wraps
and we are  continuing  to focus on  growing  the number of  restaurants  in the
Arby's  system,  adding new menu  offerings  and  implementing  new  operational
initiatives  targeted  at  service  levels  and  convenience.  We  plan  to grow
Deerfield's   asset   management   portfolio  by  utilizing  the  value  of  its
historically  profitable investment advisory brand, thereby increasing its asset
management fee revenues.

     As discussed  below under  "Liquidity and Capital  Resources - Acquisitions
and  Investments,"  we  continue  to  evaluate  our  options  for the use of our
significant cash, cash equivalent and investment position,  including additional
business  acquisitions,  repurchases  of our common shares and  investments.  In
recent  periods we  evaluated  a number of business  acquisition  opportunities,
including  Deerfield,  and we intend to  continue  our  disciplined  search  for
potential  business  acquisitions  that we believe have the  potential to create
significant value to our stockholders.

     In recent periods our  restaurant  business has  experienced  the following
trends:

o    Continued  growth of food  consumed away from home as a percentage of total
     food-related spending;

o    Increases in the cost and overall  difficulty  of  developing  new units in
     many areas of the country,  primarily as a result of increased  competition
     among  quick  service  restaurants  and other  retail  food  operators  for
     available development sites, higher development costs associated with those
     sites and continued  tightening in the lending  markets  typically  used to
     finance new unit development;

o    Increased  price  competition  in the quick  service  restaurant  industry,
     particularly   as  evidenced  by  the  value  menu  concept   which  offers
     comparatively  lower  prices  on some menu  items,  the  combination  meals
     concept  which offers a combination  meal at an aggregate  price lower than
     the  individual  food  and  beverage  items,   couponing  and  other  price
     discounting;

o    The  continuing  proliferation  of  competitors  in the  higher  end of the
     sandwich  category,  many of whom are competing with Arby's in the offering
     of  higher-priced  sandwiches  with  perceived  higher levels of freshness,
     quality and customization;

o    Competition from new product  choices,  offering a variety of options which
     include low calorie,  low carbohydrate  and/or low fat products as a result
     of a greater consumer awareness of nutritional issues;

o    Additional competitive pressures for prepared food purchases from operators
     outside the quick  service  restaurant  industry  such as deli sections and
     in-store  cafes of several major grocery store chains,  convenience  stores
     and casual dining outlets;

o    The addition of selected higher-priced quality items to menus, which appeal
     more to adult tastes;

o    Increases in beef and other commodity costs resulting from reduced supplies
     and increased demand; and

o    Legislative  activity  on both the  Federal  and state  level,  which could
     result in higher wages,  fringe  benefits,  health care and other insurance
     and packaging costs.

     We  experience  the  effects of these  trends  directly  to the extent they
affect the  operations of our  Company-owned  restaurants  and indirectly to the
extent  they  affect  sales by our  franchisees  and,  accordingly,  impact  the
royalties and franchise fees we receive from them.

     In recent  periods,  our asset  management  business  has  experienced  the
following  trends,  including  trends  prior  to our  entrance  into  the  asset
management business through the Deerfield Acquisition:

o    Growth in the hedge fund market as investors  appear to be increasing their
     investment allocations to hedge funds;

o    Increased  competition  in the hedge fund industry in the form of new hedge
     funds offered by both new and established  investment  managers to meet the
     increasing demand of hedge fund investors;

o    Continued growth of the CDO market as it opens to individual investors,  in
     addition to the  institutional  investors which it has mainly served in the
     past,  with funds that offer more  simplified  income tax reporting for the
     investor; and

o    Increased  competition in the fixed income investment  markets resulting in
     higher demand for and costs of  investments  purchased by CDOs resulting in
     the need to continuously develop new investment strategies with the goal of
     maintaining acceptable returns to investors.

Presentation of Financial Information

     We  report  on a fiscal  year  consisting  of 52 or 53 weeks  ending on the
Sunday  closest to December 31.  However,  Deerfield  reports on a calendar year
ending on December 31. Our first  nine-month  period of fiscal 2003 commenced on
December  30,  2002 and ended on  September  28,  2003,  with our third  quarter
commencing  on June 30,  2003.  Our  first  nine-month  period  of  fiscal  2004
commenced on December 29, 2003 and ended on September  26, 2004,  with our third
quarter  commencing  on June 28,  2004,  except that for each of these  periods,
Deerfield  is included  from July 23, 2004  through its quarter end of September
30, 2004.  When we refer to the "three months ended  September 28, 2003," or the
"2003 third  quarter,"  and the "nine months ended  September  28, 2003," or the
"first nine months of 2003," we mean the periods from June 30, 2003 to September
28, 2003 and  December 30, 2002 to September  28,  2003,  respectively.  When we
refer to the  "three  months  ended  September  26,  2004," or the  "2004  third
quarter,"  and the "nine months ended  September  26,  2004," or the "first nine
months of 2004," we mean the periods  from June 28, 2004 to  September  26, 2004
and  December  29,  2003 to  September  26,  2004,  respectively.  Each  quarter
contained 13 weeks and each nine-month  period contained 39 weeks. The effect of
including  Deerfield in our results through Deerfield's quarter end of September
30, 2004 instead of our quarter end of September 26, 2004 was not material.  Our
2004 fiscal year will end on January 2, 2005 and will contain 53 weeks  compared
with 52 weeks in 2003.  Accordingly,  our results of  operations  for the fourth
quarter of fiscal 2004 will contain one more week than the comparable  period of
fiscal 2003. All references to years,  first nine months and quarters  relate to
fiscal periods rather than calendar periods.


Results of Operations

     Presented  below is a table that  summarizes  our results of operations and
compares the amount and percent of the change between the (1) 2003 third quarter
and the 2004 third  quarter  and (2) the first nine months of 2003 and the first
nine months of 2004.  We  consider  certain  percentage  changes  between  these
periods to be not measurable or not meaningful,  and we refer to these as "n/m."
The percentage changes used in the following discussion have been rounded to the
nearest whole percent.



                                               Three Months Ended                         Nine Months Ended
                                            --------------------------     Change    ---------------------------    Change
                                            September 28,September 26,---------------September 28, September 26,--------------
                                                2003         2004     Amount  Percent    2003          2004     Amount Percent
                                                ----         ----     ------  -------    ----          ----     ------ -------
                                                                         (In Millions Except Percents)
                                                                                        
Revenues:
   Net sales.................................$   51.1      $  52.3     $  1.2     2 %    $ 151.0    $ 151.7    $   0.7     - %
   Royalties and franchise and related
     fees....................................    23.5         26.7        3.2    14 %       68.2       74.0        5.8     9 %
   Asset management and related fees.........       -          6.9        6.9   n/m            -        6.9        6.9   n/m
                                             --------      -------     ------            -------    -------    -------
                                                 74.6         85.9       11.3    15 %      219.2      232.6       13.4     6 %
                                             --------      -------     ------            -------    -------    -------
Costs and expenses:
   Cost of sales, excluding depreciation
     and amortization........................    38.3         40.9        2.6     7 %      112.1      119.9        7.8     7 %
   Cost of services, excluding depreciation
     and amortization........................       -          2.0        2.0   n/m            -        2.0        2.0   n/m
   Advertising and selling...................     4.4          4.0       (0.4)   (9)%       11.6       12.8        1.2    10 %
   General and administrative, excluding
     depreciation and amortization...........    23.4         28.7        5.3    23 %       70.7       77.5        6.8    10 %
   Depreciation and amortization, excluding
     amortization of deferred financing
     costs...................................     3.4          4.8        1.4    41 %       10.2       11.6        1.4    14 %
                                             --------      --------    ------            -------    -------    -------
                                                 69.5         80.4       10.9    16 %      204.6      223.8       19.2     9 %
                                             --------      --------    ------            -------    -------    -------
       Operating profit.....................      5.1          5.5        0.4     8 %       14.6        8.8       (5.8)  (40)%
Interest expense ...........................    (10.0)        (5.0)       5.0    50 %      (27.8)     (23.6)       4.2    15 %
Insurance expense related to long-term
  debt......................................     (1.0)        (1.0)         -     - %       (3.2)      (2.9)       0.3     9 %
Investment income (loss), net...............      4.0         (3.7)      (7.7)  n/m         10.9        7.4       (3.5)  (32)%
Gain (costs) related to proposed business
   acquisitions not consummated.............      3.0            -       (3.0) (100)%        2.1       (0.8)      (2.9)  n/m
Other income, net...........................      0.4          0.4          -     -          1.4        1.9        0.5    36 %
                                             --------      -------     ------            -------    -------    -------
       Income (loss) from continuing
         operations before income taxes and
         minority interests.................      1.5         (3.8)      (5.3)  n/m         (2.0)      (9.2)      (7.2)  n/m
(Provision for) benefit from income taxes...     (1.0)        15.6       16.6   n/m         (1.0)      16.6       17.6   n/m
Minority interests in (income) loss of
   consolidated subsidiaries................        -         (0.7)      (0.7)  n/m          0.1       (0.7)      (0.8)  n/m
                                             --------      -------     ------            -------    -------    -------
       Income (loss) from continuing
         operations.........................      0.5         11.1       10.6   n/m         (2.9)       6.7        9.6   n/m
Gain on disposal of discontinued operations.        -         10.8       10.8   n/m            -       10.8       10.8   n/m
                                             --------      -------     ------            -------    -------    -------
       Net income (loss)....................$     0.5      $  21.9     $ 21.4   n/m      $  (2.9)   $  17.5    $  20.4   n/m
                                            =========      =======     ======            =======    =======    =======



Three Months Ended September 26, 2004 Compared with Three Months Ended September
28, 2003

Net Sales

     Our net sales, which were generated entirely from the Company-owned  Arby's
restaurants,  increased  $1.2  million,  or 2%, to $52.3  million  for the three
months ended  September  26, 2004 from $51.1  million for the three months ended
September 28, 2003.

     This  increase  reflects a $1.4 million  improvement  due to a 3% growth in
same-store  sales of the  Company-owned  restaurants  in the 2004 third  quarter
compared with the weak  same-store  sales  performance of the 2003 third quarter
slightly  offset  by  a  $0.2  million  decrease  due  to  the  closing  of  two
underperforming  Company-owned  restaurants  since  September 28, 2003.  When we
refer to same-store  sales, we mean only sales of those  restaurants  which were
open during the same  months in both of the  comparable  periods.  The growth in
same-store sales resulted principally from new lines of salads and wraps and new
sandwich menu offerings  introduced  during the 2004 second and third  quarters,
the effects of which were partially offset by less favorable  performance in our
restaurants in the Michigan region, an area where approximately one-third of our
Company-owned  restaurants are located and which has been particularly  impacted
by  high   unemployment.   The  growth  in  same-store  sales  of  Company-owned
restaurants of 3% was less than the 8% growth in same-store  sales of franchised
restaurants  discussed  under  "Royalties and Franchise and Related Fees" below.
Contributing  factors to this difference include the (1) economic  conditions in
the Michigan region, as previously discussed, and (2) weaker revenue performance
in the Dallas region as a result of lower advertising spending in the region for
our combined  Company-owned and franchised  restaurants than would have occurred
if that market were more fully penetrated.

     We expect that same-store  sales of the  Company-owned  restaurants for the
fourth quarter of 2004 will exceed the weak  same-store  sales of the comparable
period of 2003.  We expect  that this  sales  growth  will  result  from (1) the
continued  sales of the new lines of salads  and  wraps  and new  sandwich  menu
offerings  introduced  during  the  2004  second  and  third  quarters,  (2) the
introduction of new salad and wrap offerings  during the 2004 fourth quarter and
(3) new operational  initiatives targeted at service levels and convenience.  We
presently  expect  to open one new  Company-owned  restaurant  and  close  three
underperforming Company-owned restaurants during the fourth quarter of 2004.

Royalties and Franchise and Related Fees

     Our royalties and franchise and related fees, which were generated entirely
from the  franchised  restaurants,  increased  $3.2  million,  or 14%,  to $26.7
million for the three months ended September 26, 2004 from $23.5 million for the
three  months ended  September  28, 2003,  reflecting  a $3.1  million,  or 13%,
increase in royalties and a $0.1 million increase in franchise and related fees.
The increase in royalties  consisted of (1) a $2.0 million improvement due to an
8% increase in same-store sales of the franchised  restaurants in the 2004 third
quarter  compared with the weak same-store  sales  performance of the 2003 third
quarter and (2) a $1.1 million  improvement  resulting from the royalties of the
114  restaurants  opened since  September 28, 2003,  with generally  higher than
average  sales   volumes,   replacing  the  royalties   from  the  76  generally
underperforming restaurants closed since September 28, 2003.

     We expect that same-store  sales of the franchised  restaurants  during the
fourth quarter of 2004 will exceed the weak  same-store  sales of the comparable
period of 2003 due to the new lines of salads  and wraps and new  sandwich  menu
offerings already introduced through the end of the 2004 third quarter,  (2) the
introduction  of  additional  new salad and wrap  offerings  during  the  fourth
quarter  and (3) new  operational  initiatives  targeted  at service  levels and
customer convenience.

Asset Management and Related Fees

     Our asset  management and related fees of $6.9 million for the three months
ended September 26, 2004 resulted entirely from the management of CDOs and Funds
acquired in the Deerfield Acquisition.

Cost of Sales, Excluding Depreciation and Amortization

     Our  cost of  sales,  excluding  depreciation  and  amortization,  resulted
entirely from the Company-owned Arby's restaurants. Cost of sales increased $2.6
million,  or 7%, to $40.9 million for the three months ended September 26, 2004,
representing  a gross  margin of 22%,  from $38.3  million for the three  months
ended  September 28, 2003,  representing  a gross margin of 25%. We define gross
margin as the  difference  between  net sales and cost of sales  divided  by net
sales.  The  decrease in gross  margins is due  principally  to (1) the new menu
offerings  which  have  relatively  higher  costs than our other  products,  (2)
increased  price  discounting  of some of our other products  primarily  through
increased use of coupons and (3) higher roast beef costs, the largest  component
of our menu offerings, as well as higher costs for other commodities,  resulting
from overall decreased supplies and increased demand.

     We currently  anticipate  that our gross  margin for the fourth  quarter of
2004 will be relatively unchanged compared with the 22% gross margin in both the
2004 third quarter and the 2003 fourth quarter.

Cost of Services, Excluding Depreciation and Amortization

     Our cost of services,  excluding  depreciation  and  amortization,  of $2.0
million for the three months ended September 26, 2004 resulted entirely from the
management of CDOs and Funds acquired in the Deerfield Acquisition.

     Our royalties and franchise fees have no associated cost of services.

Advertising and Selling

     Our  advertising  and  selling  expenses  decreased  $0.4  million,  or 9%,
principally due to a $0.3 million decrease as a result of the timing within each
year of our  contractual  commitment as the Arby's  franchisor  for  advertising
support.  We contributed  and expensed $0.7 million  toward the Arby's  national
cable  television  advertising  campaign in the 2004 third quarter compared with
$1.0 million in the 2003 third quarter.  However,  our overall advertising costs
for this  campaign  for the full  years  2004  and  2003 are  anticipated  to be
relatively unchanged.

General and Administrative, Excluding Depreciation and Amortization

     Our  general  and  administrative  expenses,   excluding  depreciation  and
amortization  increased  $5.3  million,  primarily  reflecting  $3.9  million of
general and administrative  expenses of Deerfield.  Aside from the effect of the
Deerfield  Acquisition,  general  and  administrative  expenses  increased  $1.4
million  principally due to (1) a $1.5 million expense in the 2004 third quarter
for an environmental  liability  insurance policy covering unknown  pre-existing
and  future  conditions  on all of our  currently-owned  properties  as  well as
unknown  pre-existing  conditions on  formerly-owned  properties  and (2) a $0.5
million increase in severance,  recruiting and relocation costs  attributable to
personnel changes,  both partially offset by a $0.6 million decrease in deferred
compensation expense.  Deferred compensation expense,  which decreased from $0.8
million for the three  months ended  September  28, 2003 to $0.2 million for the
three months ended September 26, 2004, represents the increase in the fair value
of investments  in two deferred  compensation  trusts,  which we refer to as the
Deferred  Compensation  Trusts,  for  the  benefit  of our  Chairman  and  Chief
Executive Officer and President and Chief Operating Officer, whom we refer to as
the  Executives,  as explained in more detail  below under  "Income  (Loss) From
Continuing Operations Before Income Taxes and Minority Interests."

Depreciation  and  Amortization,  Excluding  Amortization of Deferred  Financing
Costs

     Our  depreciation  and  amortization,  excluding  amortization  of deferred
financing costs increased $1.4 million,  reflecting $0.8 million of depreciation
and  amortization  related to Deerfield.  Aside from the effect of the Deerfield
Acquisition,  depreciation and amortization  increased $0.6 million  principally
due to our  implementation  of new  back  office  and  point-of-sale  restaurant
systems.

Interest Expense

     Interest expense decreased $5.0 million  principally due to (1) the release
in the 2004  third  quarter  of $4.3  million  of  interest  accruals  no longer
required  upon  the   finalization  by  the  Internal  Revenue  Service  of  its
examination  of our Federal  income tax returns for the years ended December 31,
2000 and December 30, 2001, which we refer to as the IRS Examination,  and (2) a
$0.7 million decrease attributable to lower outstanding amounts of a majority of
our long-term debt in the 2004 third quarter.

Investment Income (Loss), Net

     The  following  table  summarizes  and  compares  the major  components  of
investment income (loss), net:



                                                                       Three Months Ended
                                                                 -----------------------------
                                                                 September 28,   September 26,
                                                                     2003            2004           Change
                                                                     ----            ----           ------
                                                                                 (In Millions)
                                                                                         
      Recognized net gains (losses)...............................$     1.4        $   (4.0)      $    (5.4)
      Other than temporary unrealized losses .....................        -            (3.7)           (3.7)
      Interest income.............................................      2.2             3.3             1.1
      Distributions, including dividends..........................      0.6             0.9             0.3
      Other.......................................................     (0.2)           (0.2)              -
                                                                  ---------        ---------      ---------
                                                                  $     4.0        $   (3.7)      $    (7.7)
                                                                  =========        ========       =========


     Our  recognized  net gains  (losses)  include  realized gains and losses on
sales  of our  available-for-sale  securities  and  cost-basis  investments  and
unrealized  gains  and  losses on  changes  in the fair  values  of our  trading
securities and our securities  sold short with an obligation to repurchase.  Our
recognized net gains (losses)  worsened $5.4 million  principally  due to losses
realized on the sales of two of our  available-for-sale  securities  in the 2004
third  quarter.  These  recognized  gains and losses may vary  significantly  in
future periods  depending upon the timing of the sales of our investments or the
changes in the value of our investments, as applicable. Our other than temporary
unrealized losses are dependent upon the underlying  economics and/or volatility
in the value of our investments in available-for-sale  securities and cost-basis
investments  and may or may not  recur in  future  periods.  In the  2004  third
quarter,  we recognized  $3.7 million of other than temporary  losses due to the
recognition of impairment  charges based on declines in market values of some of
our higher yielding,  but more risk-inherent,  debt securities entered into with
the  objective  of  improving  the  overall   return  on  our   interest-bearing
investments, as well as declines in two available-for-sale  investments in large
public  companies and a cost method  investment.  Interest income increased $1.1
million  principally  reflecting  $0.6 million of interest  income of Deerfield.
Aside from the effect of the Deerfield  Acquisition,  interest income  increased
$0.5   million   primarily   due  to  an  increase  in  average   rates  on  our
interest-bearing  investments from 1.3% in the 2003 third quarter to 1.9% in the
2004 third quarter  principally due to the general  increase in the money market
and short-term  interest rate environment and, to a lesser extent, our investing
in some higher yielding, but more risk-inherent,  debt securities. These factors
were  partially   offset  by  a  lower  average   outstanding   balance  of  our
interest-bearing   investments  in  the  2004  third  quarter   because  of  the
liquidation  of some of those  investments  to  provide  cash for the  Deerfield
Acquisition.

     As of  September  26,  2004,  we had pretax  unrealized  holding  gains and
(losses) on available-for-sale  marketable securities of $4.9 million and $(2.6)
million,  respectively,  included in accumulated other comprehensive  income. We
presently  believe  that the  unrealized  losses are not other  than  temporary.
Should  either (1) we decide to sell any of these  investments  with  unrealized
losses or (2) any of the  unrealized  losses  continue such that we believe they
have become other than  temporary,  we would recognize the losses on the related
investments at that time.

Gain (Costs) Related to Proposed Business Acquisitions Not Consummated

     The $3.0  million  gain  related  to  proposed  business  acquisitions  not
consummated in the three months ended  September 28, 2003  represented a payment
received  by us for the use of due  diligence  materials  related  to a proposed
business acquisition we had previously decided not to continue to pursue and did
not consummate.  The costs incurred in connection with this proposed acquisition
were expensed  before the 2003 third quarter since recovery of the costs was not
certain.

Income  (Loss) From  Continuing  Operations  Before  Income  Taxes and  Minority
Interests

     Our income  (loss)  from  continuing  operations  before  income  taxes and
minority  interests  decreased  $5.3  million to a loss of $3.8  million for the
three months ended  September 26, 2004 from income of $1.5 million for the three
months ended September 28, 2003 due to the effect of the variances  explained in
the captions above.

     As discussed  above, we recognized  deferred  compensation  expense of $0.8
million in the 2003 third  quarter and $0.2  million in the 2004 third  quarter,
within  general  and  administrative  expenses  in  the  accompanying  condensed
consolidated  statements of  operations,  for the increases in the fair value of
investments in the Deferred  Compensation  Trusts.  Under accounting  principles
generally  accepted in the United  States of America,  we  recognize  investment
income for any  interest  or  dividend  income on  investments  in the  Deferred
Compensation  Trusts and realized  gains on sales of investments in the Deferred
Compensation  Trusts,  but are unable to  recognize  any  investment  income for
unrealized  increases  in the fair  value  of the  investments  in the  Deferred
Compensation  Trusts because these  investments are accounted for under the cost
method  of  accounting.  During  the  2003  third  quarter,  we  recognized  net
investment income from investments in the Deferred  Compensation  Trusts of $0.1
million  consisting of a $0.2 million  gain,  which  represented  an increase in
value prior to that period,  less $0.1 million of  investment  management  fees.
During the 2004 third  quarter,  we  recognized  a net  investment  loss of $0.1
million consisting of investment fees. The cumulative disparity between deferred
compensation expense and net recognized investment income will reverse in future
periods as either (1) additional investments in the Deferred Compensation Trusts
are sold and previously  unrealized gains are recognized  without any offsetting
increase in  compensation  expense or (2) the fair values of the  investments in
the Deferred  Compensation  Trusts  decrease  resulting in the  recognition of a
reversal of  compensation  expense without any offsetting  losses  recognized in
investment income.

(Provision For) Benefit From Income Taxes

     We had a benefit from income taxes for the three months ended September 26,
2004 which greatly  exceeded our pretax loss due to the release of $14.6 million
of income tax reserves related to our continuing operations which were no longer
required upon the  finalization of the IRS Examination and the finalization of a
state income tax  examination  and the  expiration of the statute of limitations
for  examinations of certain state income tax returns.  Our provision for income
taxes for the three months ended  September  28, 2003  represented  an effective
rate of 68%  which is  substantially  higher  than  the  United  States  Federal
statutory rate of 35% due to (1) the effect of non-deductible compensation costs
and (2) state  income  taxes,  net of  Federal  income tax  benefit,  due to the
differing mix of pretax  income or loss among the  consolidated  entities  which
file state tax returns on an individual  company  basis.

Minority  Interests in (Income) Loss of Consolidated Subsidiaries

     The  minority  interests  in income of  consolidated  subsidiaries  of $0.7
million for the  three-month  period  ended  September  26, 2004  related to the
minority interests resulting from the Deerfield Acquisition.

Gain on Disposal of Discontinued Operations

     During the  three-month  period ended  September  26, 2004,  we recorded an
additional  gain on the  disposal  of our former  beverage  businesses  of $10.8
million  resulting  from the  release  of income tax  reserves  related to those
discontinued  operations  which were no longer required upon the finalization of
the IRS  Examination  and the  expiration  of the  statute  of  limitations  for
examinations  of certain state income tax returns.

Nine Months Ended  September 26, 2004 Compared with Nine Months Ended  September
28, 2003

Net Sales

     Our net sales, which were generated entirely from the Company-owned  Arby's
restaurants,  increased slightly by $0.7 million, to $151.7 million for the nine
months ended  September  26, 2004 from $151.0  million for the nine months ended
September 28, 2003.

     This  increase  reflects a $1.7 million  improvement  due to a 1% growth in
same-store sales of the Company-owned  restaurants  during the nine months ended
September 26, 2004 compared with the weak same-store  sales  performance  during
the nine months ended  September  28, 2003,  partially  offset by a $1.0 million
decrease  due to the closing of two  underperforming  Company-owned  restaurants
since September 28, 2003. The increase in same-store sales reflected improvement
from  the new  lines  of  salads  and  wraps  and new  sandwich  menu  offerings
introduced beginning in the 2004 second and third quarters, the effects of which
were  offset by  unfavorable  performance  in our  restaurants  in the  Michigan
region, an area where approximately  one-third of our Company-owned  restaurants
are  located  and which has been  particularly  impacted  by high  unemployment.
Same-store  sales  during the first nine months of 2004 also  reflect  increased
price  promotions  compared with the first nine months of 2003,  although we are
unable to  determine  if the  incremental  effect  on sales  volume of the price
promotions was sufficient to exceed or partially  offset the unfavorable  effect
on pricing.

     We expect that same-store  sales of the  Company-owned  restaurants for the
fourth quarter of 2004 will exceed the weak  same-store  sales of the comparable
period of 2003, as explained in the comparison of the three-month periods.

Royalties and Franchise and Related Fees

     Our royalties and franchise and related fees, which were generated entirely
from the franchised restaurants, increased $5.8 million, or 9%, to $74.0 million
for the nine months  ended  September  26, 2004 from $68.2  million for the nine
months ended September 28, 2003.  This increase  consisted of (1) a $3.2 million
improvement  in  royalties  due to a 4%  increase  in  same-store  sales  of the
franchised  restaurants  during the first nine months of 2004  compared with the
weak same-store sales performance during the first nine months of 2003 and (2) a
$2.6 million  improvement  in royalties  from the 114  restaurants  opened since
September 28, 2003, with generally higher than average sales volumes,  replacing
the royalties  from the 76 generally  underperforming  restaurants  closed since
September 28, 2003.

     We expect that same-store  sales of the franchised  restaurants  during the
fourth quarter of 2004 will exceed the weak  same-store  sales of the comparable
period of 2003, as explained in the comparison of the three-month periods.

Asset Management and Related Fees

     Our asset  management  and related fees of $6.9 million for the nine months
ended September 26, 2004 resulted entirely from the management of CDOs and Funds
acquired in the Deerfield Acquisition.

Cost of Sales, Excluding Depreciation and Amortization

     Our  cost of  sales,  excluding  depreciation  and  amortization,  resulted
entirely from the Company-owned Arby's restaurants. Cost of sales increased $7.8
million,  or 7%, to $119.9 million for the nine months ended September 26, 2004,
representing  a gross  margin of 21%,  from  $112.1  million for the nine months
ended  September 28, 2003,  representing  a gross margin of 26%. The decrease in
gross  margins  is due  principally  to (1) the new menu  offerings  which  have
relatively  higher costs than our other  products  and for which we  experienced
additional  costs during the  roll-out  period in the 2004 second  quarter,  (2)
increased  price  discounting  of some of our other products  primarily  through
increased use of coupons and (3) higher roast beef costs, the largest  component
of our menu offerings, as well as higher costs for other commodities,  resulting
from overall decreased supplies and increased demand.

     We  currently  anticipate  that our gross  margin will  improve in the 2004
fourth  quarter  compared  with the 21% for the first nine months of 2004 due to
(1) initiatives to improve  operating  efficiencies  that are being supported by
the  on-going  implementation  of new back office and  point-of-sale  restaurant
systems which will be completed  during the 2004 fourth  quarter and (2) pricing
improvements  from both price  increases  implemented in August 2004 for some of
our new and existing menu items and more limited price promotions.

Cost of Services, Excluding Depreciation and Amortization

     Our cost of services,  excluding  depreciation  and  amortization,  of $2.0
million for the nine months ended September 26, 2004 resulted  entirely from the
management of CDOs and Funds acquired in the Deerfield Acquisition.

     Our royalties and franchise fees have no associated cost of services.

Advertising and Selling

     Our  advertising  and selling  expenses  increased  $1.2  million,  or 10%,
principally  due to (1) a $0.7 million  increase in advertising  expenses of our
Company-owned  restaurants  primarily for the new menu  offerings  introduced in
April 2004 and (2) a $0.4 million recovery of a  fully-reserved  franchisee note
receivable  in the 2003  second  quarter  which did not recur in the first  nine
months of 2004.

General and Administrative, Excluding Depreciation and Amortization

     Our  general  and  administrative  expenses,   excluding  depreciation  and
amortization  increased  $6.8  million,  reflecting  $3.9 million of general and
administrative  expenses of  Deerfield.  Aside from the effect of the  Deerfield
Acquisition,   general  and  administrative   expenses  increased  $2.9  million
principally  due to (1) a $2.4 million  increase in  severance,  recruiting  and
relocation costs attributable to personnel  changes,  (2) a $1.5 million expense
in the 2004  third  quarter  for an  environmental  liability  insurance  policy
covering unknown  pre-existing and future conditions on all our  currently-owned
properties  as  well  as  unknown  pre-existing   conditions  on  formerly-owned
properties and (3) a $0.6 million  increase in professional  fees as a result of
our compliance with the  Sarbanes-Oxley  Act of 2002, all partially  offset by a
$1.6 million decrease in deferred  compensation  expense.  Deferred compensation
expense,  which  decreased from $2.8 million for the nine months ended September
28,  2003  to $1.2  million  for the  nine  months  ended  September  26,  2004,
represents  the  increase  in the fair  value  of  investments  in the  Deferred
Compensation  Trusts,  for the benefit of the  Executives,  as explained in more
detail below under "Income (Loss) From Continuing Operations Before Income Taxes
and Minority Interests."

Depreciation  and  Amortization,  Excluding  Amortization of Deferred  Financing
Costs

     Our  depreciation  and  amortization,  excluding  amortization  of deferred
financing costs increased $1.4 million,  reflecting $0.8 million of depreciation
and  amortization  related to Deerfield.  Aside from the effect of the Deerfield
Acquisition,  depreciation and amortization  increased $0.6 million  principally
due to our  implementation  of new  back  office  and  point-of-sale  restaurant
systems.

Interest Expense

     Interest expense decreased $4.2 million  principally due to (1) the release
in the 2004  third  quarter  of $4.3  million  of  interest  accruals  no longer
required  upon  the  finalization  of the IRS  Examination,  (2) a $2.6  million
decrease  attributable  to  lower  outstanding  amounts  of a  majority  of  our
long-term debt and (3) $0.8 million of interest expense in the first nine months
of 2003  which did not  recur in the first  nine  months of 2004  relating  to a
post-closing  sales price adjustment settled in December 2003 in connection with
the October 2000 sale of our former  beverage  businesses.  These decreases were
partially  offset by a $3.6  million  increase  in interest  expense,  including
related  amortization of deferred financing costs, due to the full period effect
in the first nine months of 2004 of the $175.0 million  principal  amount of our
5% convertible notes, which we refer to as the Convertible Notes,  issued on May
19, 2003.

Investment Income (Loss), Net

     The  following  table  summarizes  and  compares  the major  components  of
investment income, net:


                                                                        Nine Months Ended
                                                                 -----------------------------
                                                                 September 28,   September 26,
                                                                     2003            2004           Change
                                                                     ----            ----           ------
                                                                                 (In Millions)
                                                                                         
      Other than temporary unrealized losses .....................$    (0.4)       $   (6.5)      $    (6.1)
      Interest income.............................................      6.2            11.7             5.5
      Recognized net gains........................................      3.9             0.4            (3.5)
      Distributions, including dividends..........................      1.6             2.4             0.8
      Other.......................................................     (0.4)           (0.6)           (0.2)
                                                                  ---------        --------       ---------
                                                                  $    10.9        $    7.4       $    (3.5)
                                                                  =========        ========       =========


     Our other than temporary  unrealized  losses, as described in detail in the
comparison  of the  three-month  periods,  increased  $6.1  million  principally
reflecting the  recognition  of $6.5 million of impairment  charges in the first
nine months of 2004 based on  significant  declines in the market values of some
of  our  higher  yielding,  but  more  risk-inherent,   debt  investments,   two
available-for-sale  investments  in large  public  companies  and a cost  method
investment.  Interest income  increased $5.5 million  partially  reflecting $0.6
million of interest income of Deerfield.  Aside from the effect of the Deerfield
Acquisition, interest income increased $4.9 million primarily due to an increase
in average rates on our interest-bearing investments from 1.3% in the first nine
months of 2003 to 2.4% in the first nine months of 2004  principally  due to our
investing in some higher yielding, but more risk-inherent,  debt securities with
the  objective  of  improving  the  overall   return  on  our   interest-bearing
investments and the general increase in the money market and short-term interest
rate  environment.  These  factors  were  partially  offset  by a lower  average
outstanding  balance  of our  interest-bearing  investments  in the  2004  third
quarter because of the liquidation of some of these  investments to provide cash
for the Deerfield  Acquisition.  Our recognized net gains,  also as described in
detail in the  comparison of the  three-month  periods,  decreased  $3.5 million
principally due to losses realized on the sales of two of our available-for-sale
securities in the 2004 third quarter partially offset by lesser gains recognized
on the sale of other investments.  In addition,  during the first nine months of
2003 and 2004,  our recognized net gains included $0.7 million and $0.8 million,
respectively,   of  realized  gains  from  the  sale  of  certain   cost-related
investments  in the Deferred  Compensation  Trusts,  as explained in more detail
below under  "Income Loss from  Continuing  Operations  before  income taxes and
minority  interests."  All  of  these  recognized  gains  and  losses  may  vary
significantly  in future  periods  depending upon the timing of the sales of our
investments,  including the investments in the Deferred  Compensation Trusts, or
the changes in the value of our investments, as applicable.

     As of  September  26,  2004,  we had pretax  unrealized  holding  gains and
(losses) on available-for-sale  marketable securities of $4.9 million and $(2.6)
million,  respectively,  included in accumulated other comprehensive  income. We
presently  believe  that the  unrealized  losses are not other  than  temporary.
Should  either (1) we decide to sell any of these  investments  with  unrealized
losses or (2) any of the  unrealized  losses  continue such that we believe they
have become other than  temporary,  we would recognize the losses on the related
investments at that time.

Gain (Costs) Related to Proposed Business Acquisitions Not Consummated

     The $2.1  million  gain  related  to  proposed  business  acquisitions  not
consummated  in the nine months ended  September 28, 2003  represented a payment
received  by us for the use of due  diligence  materials  related  to a proposed
business acquisition we had previously decided not to continue to pursue and did
not  consummate,  net of our costs  incurred in  connection  with this  proposed
acquisition.  The $0.8 million of costs for the nine months ended  September 26,
2004 relate to a proposed business acquisition that we decided not to pursue and
did not consummate.

Income  (Loss) From  Continuing  Operations  Before  Income  Taxes and  Minority
Interests

     Our loss from  continuing  operations  before  income  taxes  and  minority
interests  increased  $7.2  million to $9.2  million for the nine  months  ended
September  26, 2004 from $2.0  million for the nine months ended  September  28,
2003 due to the effect of the variances explained in the captions above.

     As discussed  above, we recognized  deferred  compensation  expense of $2.8
million  in the first  nine  months of 2003 and $1.2  million  in the first nine
months of 2004, within general and  administrative  expenses in the accompanying
condensed consolidated  statements of operations,  for the increases in the fair
value of  investments  in the Deferred  Compensation  Trusts.  Under  accounting
principles  generally  accepted in the United  States of America,  we  recognize
investment  income for any  interest or dividend  income on  investments  in the
Deferred  Compensation  Trusts and realized gains on sales of investments in the
Deferred  Compensation Trusts, but are unable to recognize any investment income
for  unrealized  increases in the fair value of the  investments in the Deferred
Compensation  Trusts because these  investments are accounted for under the cost
method of accounting.  We recognized net investment  income from  investments in
the Deferred Compensation Trusts of $0.5 million during the first nine months of
each of 2003 and 2004  consisting  of  realized  gains  from the sale of certain
cost-method  investments in the Deferred Compensation Trusts of $0.7 million and
$0.8 million,  respectively,  which included  increases in value of $0.5 million
and $0.8 million, respectively, prior to the respective periods, less investment
management fees of $0.2 million and $0.3 million,  respectively.  The cumulative
disparity between deferred  compensation  expense and net recognized  investment
income will reverse in future  periods as either (1)  additional  investments in
the Deferred  Compensation  Trusts are sold and previously  unrealized gains are
recognized  without any offsetting  increase in compensation  expense or (2) the
fair values of the  investments  in the Deferred  Compensation  Trusts  decrease
resulting in the recognition of a reversal of  compensation  expense without any
offsetting losses recognized in investment income.

(Provision For) Benefit From Income Taxes

     We had a benefit from income taxes for the nine months ended  September 26,
2004 which greatly  exceeded our pretax loss due to the release of $14.6 million
of income tax reserves related to our continuing operations which were no longer
required upon the  finalization of the IRS Examination and the finalization of a
state income tax  examination  and the  expiration of the statute of limitations
for  examinations  of certain  state income tax returns.  We had a provision for
income taxes for the nine months ended  September 28, 2003 despite a pretax loss
principally due to (1) the effect of non-deductible  compensation  costs and (2)
state income taxes, net of Federal income tax benefit,  due to the differing mix
of pretax income or loss among the  consolidated  entities  which file state tax
returns on an individual company basis.

Minority Interests in (Income) Loss of Consolidated Subsidiaries

     The  minority  interests  in income of  consolidated  subsidiaries  of $0.7
million for the  nine-month  period  ended  September  26,  2004  related to the
minority interests resulting from the Deerfield Acquisition.

Gain on Disposal of Discontinued Operations

     During the  nine-month  period ended  September  26,  2004,  we recorded an
additional  gain on the  disposal  of our former  beverage  businesses  of $10.8
million  resulting  from the  release  of income tax  reserves  related to those
discontinued  operations  which were no longer required upon the finalization of
the IRS  Examination  and the  expiration  of the  statute  of  limitations  for
examinations of certain state income tax returns.

Liquidity And Capital Resources

Cash Flows from Continuing Operating Activities

     Our consolidated  operating activities from continuing  operations provided
cash and cash  equivalents,  which we refer to in this  discussion  as cash,  of
$46.3 million during the nine months ended September 26, 2004 reflecting (1) net
operating investment adjustments of $51.8 million and (2) income from continuing
operations  of  $6.7  million,   both  partially  offset  by  (1)  net  non-cash
adjustments of $8.5 million and (2) cash used by changes in operating assets and
liabilities of $3.7 million.

     The net  operating  investment  adjustments  of $51.8  million  principally
reflected  $47.5 million of proceeds from sales of trading  securities in excess
of purchases.  The net non-cash  adjustments of $8.5 million principally related
to (1) income tax and related  interest  accruals of $18.9 million released upon
the  finalization  of the IRS Examination and a state income tax examination and
the expiration of the statute of limitations of certain state income tax returns
and (2) a deferred income tax benefit of $3.5 million,  both partially offset by
depreciation  and  amortization  of $13.6  million.  The cash used by changes in
operating  assets and  liabilities of $3.7 million  principally  reflected (1) a
$2.3 million decrease in accounts payable  principally due to (a) the settlement
of trading  securities  purchased  during late 2003 and (b) the  acceleration of
payments to a major distributor to obtain more favorable pricing terms and (2) a
$1.3 million  increase in  receivables  principally  due to an increase in asset
management fee receivables since the date of the Deerfield Acquisition.

     Excluding  the  effect  of the  net  sales  of  trading  securities,  which
represent  cash  provided  from  the  discretionary  sale  of  investments,  our
continuing  operating  activities  used cash of $1.2  million  in the first nine
months of 2004. However, we expect positive cash flows from continuing operating
activities  excluding  the effect,  if any, of net sales or purchases of trading
securities, for the 2004 fourth quarter.

Working Capital and Capitalization

     Working capital, which equals current assets less current liabilities,  was
$471.3 million at September 26, 2004,  reflecting a current ratio,  which equals
current  assets  divided  by  current  liabilities,  of 3.9:1.  Working  capital
decreased  $139.3 million from $610.6  million at December 28, 2003  principally
due to (1) the $87.9  million cost of the Deerfield  Acquisition  net of working
capital  acquired,  (2)  long-term  debt  repayments of $26.2  million,  (3) our
purchase of a noncurrent investment in Jurlique International Pty Ltd., which we
refer to as  Jurlique,  for $25.6  million  and (4)  dividend  payments of $13.5
million,  all partially  offset by proceeds from stock option exercises of $13.4
million.

     Our  total  capitalization  at  September  26,  2004  was  $816.8  million,
consisting of stockholders'  equity of $307.5 million,  long-term debt of $492.7
million,  including  current  portion,  and notes payable of $16.6 million.  Our
total capitalization increased $10.3 million from $806.5 million at December 28,
2003  principally  due to (1) net income of $17.5 million,  (2) notes payable of
$16.6 million assumed in the Deerfield Acquisition,  (3) the proceeds from stock
option  exercises  of $13.4  million and (4) the income tax  benefit  from stock
option  exercises of $2.0 million,  all partially  offset by (1) long-term  debt
repayments  of  $26.2  million  and (2)  dividend  payments  of  $13.5  million.

Securitization Notes

     We have outstanding, through our ownership of Arby's Franchise Trust, 7.44%
insured   non-recourse   securitization   notes,   which  we  refer  to  as  the
Securitization Notes, with a remaining principal balance of $217.6 million as of
September 26, 2004, which are due no later than December 2020. However, based on
current  projections  and assuming the adequacy of available  funds,  as defined
under  the  indenture  for the  Securitization  Notes,  which we refer to as the
Securitization  Indenture, we currently estimate that we will repay $5.7 million
during  the fourth  quarter of 2004 with  increasing  annual  payments  to $37.4
million in 2011 in accordance with a targeted principal payment schedule.

Restaurant Notes

     We have outstanding, through our ownership of Sybra, Inc., leasehold notes,
equipment  notes and mortgage  notes relating to our  Company-owned  restaurants
with a total  remaining  principal  balance of $73.1 million as of September 26,
2004.

Other Long-Term Debt

     We have outstanding  $175.0 million of 5% Convertible  Notes due 2023 which
do not have any  scheduled  principal  repayments  prior to 2023.  However,  the
Convertible  Notes are  redeemable at our option  commencing May 20, 2010 and at
the option of the holders on May 15, 2010,  2015 and 2020 or upon the occurrence
of a fundamental change, as defined,  relating to us, in each case at a price of
100% of the principal amount of the Convertible Notes plus accrued interest.  We
have a secured bank term loan payable through 2008 with an outstanding principal
amount  of $12.6  million  as of  September  26,  2004.  We also  have a secured
promissory  note payable  through 2006 with an outstanding  principal  amount of
$10.0  million as of September 26, 2004.  In addition,  we have  mortgage  notes
payable  through 2016 related to  restaurants  we sold in 1997 with  outstanding
principal amounts totaling $2.8 million as of September 26, 2004.

Notes Payable

     We have  outstanding  $16.6  million  of  notes  payable  which  relate  to
Deerfield.  Of these notes,  $11.6 million are secured by several of Deerfield's
investments in CDOs originally financed by these notes which must be repaid from
distributions  or sales  proceeds  from those  investments  and a portion of the
total asset  management  fees received from the  respective  CDOs. The remaining
$5.0  million  represents  a note  payable  which  would be repaid or  otherwise
satisfied under the same  circumstances as a related note receivable,  resulting
in no anticipated net use of cash.

Revolving Credit Facilities

     We did not have any revolving  credit  facilities as of September 26, 2004.

Debt Repayments and Covenants

     Our total  scheduled  long-term  debt and note  repayments  during the 2004
fourth  quarter are $10.1  million  consisting  principally  of the $5.7 million
expected  to be paid under the  Securitization  Notes,  $1.7  million  under the
restaurant  leasehold,  equipment  and mortgage  notes,  $0.8 million  under the
secured bank term loan, $0.5 million under the secured  promissory note and $1.1
million expected to be paid under the notes payable.

     The various note agreements and indentures contain various  covenants,  the
most restrictive of which (1) require periodic financial reporting,  (2) require
meeting certain debt service coverage ratio tests and (3) restrict,  among other
matters, (a) the incurrence of indebtedness by certain of our subsidiaries,  (b)
certain  asset  dispositions  and (c) the  payment  of  distributions  by Arby's
Franchise  Trust and Sybra. We were in compliance with all of these covenants as
of September 26, 2004.

     Sybra is  required  to  maintain a fixed  charge  coverage  ratio under the
agreements  for  the  leasehold  notes  and  mortgage  notes  and  Sybra  was in
compliance with this ratio as of September 26, 2004.

Distributions From Subsidiaries

     In accordance with the Securitization  Indenture,  as of September 26, 2004
Arby's   Franchise   Trust  had  no  amounts   available   for  the  payment  of
distributions. However, on October 20, 2004, $2.7 million relating to cash flows
for the calendar  month of September  2004 became  available  for the payment of
distributions  by Arby's  Franchise Trust through its parent to Arby's which, in
turn,  would be  available to Arby's to pay  management  service fees or Federal
income  tax-sharing  payables  to Triarc or, to the extent of any  excess,  make
distributions to Triarc.  Under the plan of reorganization of Sybra confirmed by
a United States  Bankruptcy  Court under which we acquired Sybra, we agreed that
Sybra would not pay any distributions  prior to December 27, 2004. In connection
with the  Deerfield  Acquisition,  we agreed  that  Deerfield  would not pay any
distributions  prior to March 1, 2005 and  thereafter  would pay  quarterly  tax
advance  distributions and, so long as one of the selling owners, who is also an
executive  of  Deerfield  and one of our  directors,  still  retained a minority
interest,  Deerfield  would also pay annual  distributions  to the extent of its
excess available cash.

Guarantees and Commitments

     Our wholly-owned subsidiary,  National Propane Corporation,  retains a less
than 1% special limited  partner  interest in our former propane  business,  now
known as AmeriGas  Eagle  Propane,  L.P.,  which we refer to as AmeriGas  Eagle.
National  Propane  agreed  that  while it remains a special  limited  partner of
AmeriGas  Eagle, it would indemnify the owner of AmeriGas Eagle for any payments
the owner makes related to the owner's  obligations under certain of the debt of
AmeriGas  Eagle,  aggregating  approximately  $138.0 million as of September 26,
2004,  if AmeriGas  Eagle is unable to repay or  refinance  such debt,  but only
after recourse by the owner to the assets of AmeriGas Eagle.  National Propane's
principal asset is an intercompany  note receivable from Triarc in the amount of
$50.0  million as of September  26, 2004. We believe it is unlikely that we will
be called  upon to make any  payments  under  this  indemnity.  In August  2001,
AmeriGas Propane, L.P., which we refer to as AmeriGas Propane,  purchased all of
the interests in AmeriGas Eagle other than National  Propane's  special  limited
partner  interest.  Either  National  Propane or  AmeriGas  Propane  may require
AmeriGas Eagle to repurchase the special limited partner interest.  However,  we
believe it is unlikely that either party would require  repurchase prior to 2009
as either AmeriGas Propane would owe us tax indemnification payments if AmeriGas
Propane  required  the  repurchase  or we would  accelerate  payment of deferred
taxes, which would amount to $36.9 million as of September 26, 2004,  associated
with our 1999 sale of the  propane  business if National  Propane  required  the
repurchase.  In the event the  interest  is not  repurchased  prior to 2009,  we
estimate our actual  related  taxes  payable to be $0.8 million  during the 2004
fourth  quarter with  insignificant  payments in 2005 through 2008  reducing the
taxes payable in 2009 to approximately $35.8 million.

     Triarc  guarantees  mortgage  notes payable  through 2015 of  approximately
$39.0 million as of September 26, 2004 related to 355 restaurants  sold by us in
1997. The purchaser of the  restaurants  also assumed  substantially  all of the
associated  lease  obligations  which extend  through  2031,  including all then
existing   extension  or  renewal  option   periods,   although  Arby's  remains
contingently  liable if the  purchaser  does not make the required  future lease
payments.  Those lease obligations could total a maximum of approximately  $54.0
million as of September 26, 2004,  assuming the purchaser has made all scheduled
payments under those lease obligations through that date.

Capital Expenditures

     Cash capital  expenditures  amounted to $7.9 million  during the first nine
months of 2004. We expect that cash capital  expenditures  will be approximately
$4.4  million  for  the  2004  fourth  quarter,   principally  relating  to  the
Company-owned  restaurants for (1) remodel and maintenance capital expenditures,
(2) computer hardware required for the implementation of the new back office and
point-of-sale  restaurant  systems and (3) a planned restaurant  opening.  There
were $1.4 million of  outstanding  commitments  for capital  expenditures  as of
September 26, 2004.

Computer Software Expenditures

     Cash expenditures for computer software were $0.6 million in the first nine
months  of 2004  and are  included  in  "Other,  net"  under  "Cash  flows  from
continuing  investing  activities" in the  accompanying  condensed  consolidated
statement of cash flows. We expect to make cash  expenditures  of  approximately
$0.4  million in the 2004 fourth  quarter  for  computer  software,  principally
relating to the new restaurant  systems.  There were $0.3 million of outstanding
commitments for computer software as of September 26, 2004.

Acquisitions and Investments

     On July 22, 2004 we completed  the Deerfield  Acquisition  for an aggregate
cost of $94.8 million, consisting of payments of $86.5 million to selling owners
and  estimated  expenses of $8.3  million,  including  expenses  reimbursed to a
selling  owner,  as  discussed  in more  detail  in the  "Introduction"  to this
"Management's  Discussion  and  Analysis of Financial  Condition  and Results of
Operations."

     In connection with the Deerfield  Acquisition,  we also committed to invest
$100.0  million  to  seed a new  multi-strategy  hedge  fund  to be  managed  by
Deerfield.  That fund was established and the $100 million was funded in October
2004. The fund will  initially be accounted for as a consolidated  subsidiary of
ours,   with  minority   interests  to  the  extent  of   third-party   investor
participation, commencing in the quarter ending January 2, 2005.

     In addition,  in July 2004 we acquired a 25% equity interest (14.3% general
voting  interest)  in  Jurlique,  a privately  held  Australian  skin and beauty
products  company,  for $25.6  million,  including  estimated  expenses  of $0.4
million.  We are  accounting  for Jurlique  under the cost method of  accounting
since our voting  stock  interest  of 14.3% does not  provide us the  ability to
exercise  significant   influence  over  operating  and  financial  policies  of
Jurlique.  We  paid  $13.3  million  of the  cost of the  Jurlique  acquisition,
including  estimated expenses of $0.4 million, as of September 26, 2004 with the
remainder,  including interest  commencing March 23, 2005, payable in Australian
dollars in July 2005.  We entered into a forward  contract  whereby we fixed the
exchange  rate for the payment of this  liability  in order to limit the related
foreign  currency risk. In addition,  we entered into a put and call arrangement
on a portion  of our total  cost  related  to this  investment  whereby  we have
limited the overall foreign currency risk of holding the investment through July
5, 2007.

     As of September 26, 2004, we have $647.5 million of cash, cash  equivalents
and   investments,   including  $66.1  million  of  investments   classified  as
non-current  and $1.9 million of receivables  from the sale of securities  which
had not settled as of September  26, 2004 and net of $7.5 million of  securities
sold with an  obligation  for us to purchase  included in "Accrued  expenses and
other current  liabilities" in our accompanying  condensed  consolidated balance
sheet. The cash equivalents and non-current investments include $24.9 million of
investments, at cost, in deferred compensation trusts. We also had $32.9 million
of restricted cash and cash  equivalents  including $30.5 million related to the
Securitization  Notes. We continue to evaluate  strategic  opportunities for the
use of our  significant  cash  and  investment  position,  including  additional
business acquisitions,  repurchases of Triarc common shares (see "Treasury Stock
Purchases" below) and investments.

Income Taxes

     During the quarter ended  September 26, 2004, the Internal  Revenue Service
finalized its  examination of our Federal income tax returns for the years ended
December  31, 2000 and  December  31, 2001  without  any  additional  income tax
liability to us. Our Federal income tax returns  subsequent to December 30, 2001
are not currently under  examination by the Internal  Revenue  Service  although
some of our state income tax returns are currently under  examination.  However,
we do not currently expect that any related tax payments will be required during
the 2004 fourth quarter.

Dividends

     On March 16, 2004,  June 16, 2004,  and  September 15, 2004 we paid regular
quarterly cash dividends of $0.065 and $0.075 per share on our class A and class
B common stock, respectively, aggregating $13.5 million. On November 4, 2004, we
declared regular  quarterly cash dividends of $0.065 and $0.075 per share on our
class A and class B common stock, respectively, to holders of record on December
3, 2004 and payable on December  15, 2004.  We  currently  intend to continue to
declare and pay quarterly  cash  dividends,  however,  there can be no assurance
that any  dividends  will be  declared or paid in the future or of the amount or
timing  of such  dividends,  if any.  The cash  dividends  for the  2004  fourth
quarter,  based  on  the  number  of our  class  A and  class  B  common  shares
outstanding  as of October 29, 2004,  would  require total cash for dividends of
$4.6 million for the 2004 fourth quarter.

Treasury Stock Purchases

     Our  management  is  currently  authorized,  when and if market  conditions
warrant and to the extent legally permissible, to repurchase through January 18,
2005 up to a total of $48.6  million of our class A and class B common  stock as
of September  26, 2004.  We paid $1.4 million  during the 2004 first  quarter to
settle the  repurchase  of 125,000  shares of our class A common stock through a
trade entered into prior to December 28, 2003. We cannot assure you that we will
repurchase any additional shares under this program.

Universal Shelf Registration Statement

     In December 2003, the Securities and Exchange Commission declared effective
a Triarc universal shelf registration  statement in connection with the possible
future  offer and sale,  from time to time,  of up to $2.0 billion of our common
stock,  preferred  stock,  debt securities and warrants to purchase any of these
types of securities.  Unless  otherwise  described in the applicable  prospectus
supplement  relating  to the offered  securities,  we  anticipate  using the net
proceeds of each offering for general corporate purposes, including financing of
acquisitions  and  capital  expenditures,   additions  to  working  capital  and
repayment of existing debt. We have not presently made any decision to issue any
specific securities under this universal shelf registration statement.

Cash Requirements

     As of September 26, 2004, our consolidated cash requirements for continuing
operations  for the 2004  fourth  quarter,  exclusive  of  operating  cash  flow
requirements,  consist  principally  of (1)  $100.0  million  which  was used in
October  2004 to seed our new  multi-strategy  hedge  fund,  (2) a maximum of an
aggregate  $48.6 million of payments for  repurchases of our class A and class B
common  stock for  treasury  under our current  stock  repurchase  program,  (3)
scheduled  debt principal  repayments  aggregating  $10.1  million,  (4) capital
expenditures of approximately $4.4 million, (5) regular quarterly cash dividends
aggregating approximately $4.6 million and (6) computer software expenditures of
approximately  $0.4  million.  We anticipate  meeting all of these  requirements
through (1) the use of our  aggregate  $581.4  million of existing cash and cash
equivalents,  short-term investments and receivables from the sale of securities
which  had  not  settled  as of  September  26,  2004,  net of $7.5  million  of
short-term  investments  sold with an  obligation  for us to purchase,  (2) cash
flows from continuing operating activities and (3) if necessary for any business
acquisitions and if market conditions permit, proceeds from sales, if any, of up
to $2.0  billion  of our  securities  under  the  universal  shelf  registration
statement.

Legal and Environmental Matters

     In 2001, a vacant  property  owned by Adams Packing  Association,  Inc., an
inactive  subsidiary  of ours,  was  listed by the United  States  Environmental
Protection Agency on the Comprehensive Environmental Response,  Compensation and
Liability  Information  System,  which we refer to as CERCLIS,  list of known or
suspected  contaminated sites. The CERCLIS listing appears to have been based on
an allegation  that a former tenant of Adams Packing  conducted  drum  recycling
operations  at the site from some time prior to 1971 until the late 1970's.  The
business  operations  of Adams  Packing were sold in December  1992. In February
2003,  Adams  Packing and the Florida  Department of  Environmental  Protection,
which we refer to as the Florida DEP,  agreed to a consent  order that  provided
for development of a work plan for further investigation of the site and limited
remediation  of the  identified  contamination.  In May 2003,  the  Florida  DEP
approved the work plan  submitted by Adams  Packing's  environmental  consultant
and, as of September 26, 2004,  the work at the site has been  completed.  Adams
Packing  submitted  its  contamination  assessment  report to the Florida DEP in
March  2004.  In August  2004,  the  Florida  DEP  agreed to a  monitoring  plan
consisting of two sampling  events after which it will  reevaluate  the need for
additional  assessment or  remediation.  Based on provisions of $1.7 million for
these  costs made prior to 2003,  and after  taking into  consideration  various
legal  defenses  available to us,  including  Adams  Packing,  Adams Packing has
provided for its estimate of its  remaining  liability  for  completion  of this
matter.

     In 1998,  a number of class  action  lawsuits  were  filed on behalf of our
stockholders.  Each of these actions named us, the  Executives and other members
of our board of directors as defendants.  In 1999,  certain  plaintiffs in these
actions filed a consolidated  amended  complaint  alleging that our tender offer
statement filed with the Securities and Exchange Commission in 1999, pursuant to
which we repurchased 3,805,015 shares of our class A common stock for $18.25 per
share,  failed to disclose  material  information.  The amended complaint seeks,
among other relief,  monetary  damages in an  unspecified  amount.  In 2000, the
plaintiffs  agreed  to stay  this  action  pending  determination  of a  related
stockholder  action which was  subsequently  dismissed in October 2002 and is no
longer  being  appealed.  Through  September  26,  2004,  no further  action has
occurred  with respect to the  remaining  class  action  lawsuit and such action
remains stayed.

     In addition to the environmental  matter and stockholder  lawsuit described
above, we are involved in other litigation and claims  incidental to our current
and prior businesses. We and our subsidiaries have reserves for all of our legal
and  environmental  matters  aggregating  $1.8 million as of September 26, 2004.
Although the outcome of these  matters  cannot be predicted  with  certainty and
some of these matters may be disposed of  unfavorably  to us, based on currently
available  information,  including  legal  defenses  available  to us and/or our
subsidiaries,  and given the aforementioned reserves, we do not believe that the
outcome of these legal and  environmental  matters will have a material  adverse
effect on our consolidated financial position or results of operations.

Seasonality

     Our continuing  operations are not  significantly  impacted by seasonality.
However,  our restaurant  revenues are somewhat higher in our fourth quarter and
somewhat  lower in our  first  quarter.  Further,  while  our  asset  management
business is not directly affected by seasonality,  our asset management revenues
will be higher in our  fourth  quarter  as a result of our  revenue  recognition
accounting  policy for incentive  fees related to the Funds which are based upon
performance  and are recognized  when the amounts become fixed and  determinable
upon the close of a performance period.

Recently Issued Accounting Pronouncements

     In May 2003, the Financial  Accounting  Standards Board (the "FASB") issued
Statement of Financial  Accounting  Standards No. 150,  "Accounting  for Certain
Financial  Instruments  with  Characteristics  of both  Liabilities and Equity."
Statement 150 is already effective for all financial  instruments covered by the
statement,  except  for  mandatorily  redeemable  non-controlling  interests  in
subsidiaries  that  would  not  be  liabilities  under  Statement  150  for  the
subsidiary itself,  such as minority  interests in a consolidated  subsidiary or
partnership  with a limited life.  Financial  Accounting  Standards  Board Staff
Position No. 150-3,  "Effective Date, Disclosures and Transition for Mandatorily
Redeemable  Financial  Instruments  of Certain  Nonpublic  Entities  and Certain
Mandatorily Redeemable  Noncontrolling  Interests Under FASB Statement No. 150,"
deferred  indefinitely  the  effective  date  for  applying  the  provisions  of
Statement  150 for these  mandatorily  redeemable  noncontrolling  interests  in
subsidiaries described above. Statement 150 requires a financial instrument that
is  within  its scope  which  companies  have  historically  presented  in their
financial statements as either equity or between the liabilities section and the
equity section (sometimes  referred to as mezzanine  reporting) to be classified
as a liability.  The deferred  provisions  of Statement  150 would have required
that  mandatorily  redeemable   noncontrolling   interests  in  subsidiaries  be
initially valued at fair value and subsequently valued at the cash that would be
paid as if settlement occurred at the reporting date.  Subsequent changes in the
values  of these  financial  instruments  would be  recognized  in  earnings  as
interest  expense.  If  Statement  150  becomes  effective  with  respect to the
mandatorily  redeemable  noncontrolling  interests  in  subsidiaries,   we  will
evaluate  at that  time  whether  its  application  will  have an  effect on our
consolidated financial position or results of operations.

     In September  2004,  the  Emerging  Issues Task Force of the FASB reached a
consensus  on  Issue  No.  04-8  ("EITF  04-8"),  "The  Effect  of  Contingently
Convertible  Debt on Diluted  Earnings  per  Share."  EITF 04-8  concludes  that
contingently convertible debt instruments should be included in diluted earnings
per share  computations,  if  dilutive,  regardless  of whether  the  contingent
conversion feature has been met. EITF 04-8 is expected to be applicable no later
than our 2005 first quarter ending April 3, 2005, with  retroactive  restatement
of diluted earnings per share of all comparative periods presented. We presently
have $175.0 million of 5% Convertible  Notes  outstanding  which have contingent
conversion features.  However, those Convertible Notes have not been dilutive in
the past,  regardless  of their  contingent  conversion  features,  because  the
conversion  price of $40 for every one share of our class A common stock and two
shares of our class B common  stock has always  been  higher  than the  combined
market  value of those  shares,  which was $33.78 as of September  26, 2004.  In
addition,  even if the  combined  market  value of those shares was greater than
$40, the Convertible  Notes would not be dilutive in periods where we had a loss
from continuing  operations or where our basic income from continuing operations
per share was lower than the interest  expense on the Convertible  Notes, net of
related income taxes, per share of stock obtainable upon the conversion of those
notes. In recent periods our basic income from  continuing  operations per share
has exceeded  that level only in the 2004 third  quarter  which,  as  previously
explained  in the  comparison  of the  three-month  periods  under  "Results  of
Operations,"  was due to  factors we do not  currently  anticipate  will  recur.
Accordingly,  we do not expect that our  application of EITF 04-08 will have any
immediate effect on our computation of diluted earnings per share.

Item 3.  Quantitative and Qualitative Disclosures about Market Risk

     This "Quantitative and Qualitative Disclosures about Market Risk" should be
read in conjunction  with "Item 7A.  Quantitative  and  Qualitative  Disclosures
about Market  Risk" in our annual  report on Form 10-K for the fiscal year ended
December  28,  2003.  Item 7A of our Form  10-K  describes  in more  detail  our
objectives in managing our "Interest  Rate Risk" with respect to long-term  debt
and our "Foreign Currency Risk," both as referred to below.

     Certain  statements  we make under this Item 3 constitute  "forward-looking
statements"  under the Private  Securities  Litigation  Reform Act of 1995.  See
"Special Note Regarding Forward-Looking  Statements and Projections" in "Part II
- - Other Information" preceding "Item 1."

     We are  exposed  to the impact of  interest  rate  changes,  changes in the
market  value of our  investments  and,  to a lesser  extent,  foreign  currency
fluctuations.

     Policies  and  procedures  - In the normal  course of  business,  we employ
established  policies  and  procedures  to manage  our  exposure  to  changes in
interest rates,  changes in the market value of our investments and fluctuations
in  the  value  of  foreign  currencies  using  financial  instruments  we  deem
appropriate.

Interest Rate Risk

     Our objective in managing our exposure to interest rate changes is to limit
their impact on our earnings and cash flows. We have  historically used interest
rate cap and/or interest rate swap agreements on a portion of our  variable-rate
debt to limit our exposure to the effects of increases  in  short-term  interest
rates on our  earnings  and cash flows.  We did not enter into any new  interest
rate caps or swaps  during the first nine months of 2004.  As of  September  26,
2004,  our  notes  payable  and  long-term  debt,   including  current  portion,
aggregated  $509.3 million and consisted of $480.1  million of fixed-rate  debt,
including $1.2 million of  capitalized  leases,  $16.6 million of  variable-rate
notes payable and $12.6 million of a  variable-rate  bank loan.  The fair market
value of our  fixed-rate  debt will  increase if  interest  rates  decrease.  In
addition to our fixed-rate  and  variable-rate  debt,  our investment  portfolio
includes debt  securities  that are subject to interest rate risk with remaining
maturities which range from less than ninety days to approximately thirty years.
The fair market value of all of our  investments in fixed-rate  debt  securities
will decline if interest rates increase.

Equity Market Risk

     Our  objective  in managing  our exposure to changes in the market value of
our  investments  is to balance  the risk of the impact of these  changes on our
earnings and cash flows with our expectations for long-term  investment returns.
Our primary  exposure to equity price risk relates to our  investments in equity
securities,  equity  derivatives,  securities  sold with an obligation for us to
purchase and investment limited  partnerships and similar  investment  entities.
Our board of directors has established certain policies and procedures governing
the type and relative magnitude of investments we may make. We have a management
investment  committee  which  supervises  the  investment  of certain  funds not
currently  required  for our  operations  but has  delegated  the  discretionary
authority to our Chairman and Chief  Executive  Officer and  President and Chief
Operating  Officer  to make  certain  investments.  In  addition,  our  board of
directors  also  delegated  authority  to  these  two  officers  to  direct  the
investment of a portion of our funds.

Foreign Currency Risk

     Our  exposure  to  foreign  currency  risk has  increased  during the third
quarter  of 2004 as a result  of our  $25.6  million  purchase  of a 25%  equity
interest (14.3% general voting interest) in Jurlique  International Pty Ltd., an
Australian company,  for which half the purchase price, plus interest commencing
March 23, 2005, is payable in Australian dollars in July 2005. We entered into a
forward  contract  whereby we fixed the  exchange  rate for the  payment of this
liability in order to limit the related foreign  currency risk. In addition,  we
entered into a put and call  arrangement  on a portion of our total cost related
to this investment  whereby we have limited the overall foreign currency risk of
holding the investment through July 5, 2007.

Overall Market Risk

     We balance our  exposure to overall  market risk by  investing a portion of
our  portfolio  in  cash  and  cash  equivalents  with  relatively   stable  and
risk-minimized  returns. We periodically  interview and select asset managers to
avail ourselves of higher, but more  risk-inherent,  returns from the investment
strategies of these managers.  We also seek to identify  alternative  investment
strategies  that may earn higher returns with attendant  increased risk profiles
for a portion of our investment  portfolio.  We periodically  review the returns
from each of our  investments and may maintain,  liquidate or increase  selected
investments based on this review and our assessment of potential future returns.
In response to the  continued  low interest  rate  environment,  we began in the
latter part of 2003 to invest in some higher  yielding,  but more risk inherent,
debt  securities  with the  objective  of  improving  the overall  return on our
interest-bearing  investments.   During  the  first  nine  months  of  2004,  we
recognized  unrealized  losses deemed to be other than temporary of $5.2 million
based on  declines  in market  value of some of these  more  risk-inherent  debt
securities.  However,  we are  continuing  to  adjust  our asset  allocation  to
increase the portion of our investments  which offer the opportunity for higher,
but more risk inherent,  returns.  In that regard, we committed to invest $100.0
million to seed a new multi-strategy hedge fund to be managed by a subsidiary of
Deerfield & Company,  LLC, an alternative  asset management  company in which we
acquired a  controlling  interest in July 2004.  As of September  26, 2004,  the
$100.0  million  was held by us  temporarily  in  overnight  reverse  repurchase
agreements  collateralized  by United States  government agency debt securities.
However,  in October 2004 the hedge fund was  established and the $100.0 million
was transferred to the fund. The fund invests in various fixed income securities
and their derivatives as opportunities  arise. These include investments in bank
loans,  credit  instruments  such as credit default  swaps,  and debt and equity
tranches of  collateralized  debt obligation  instruments,  which we refer to as
CDOs. Further, this fund may employ leverage.  These investments will be subject
to market risks including  interest rate risk and credit risk for investments in
credit  derivatives.  The fund will initially be accounted for as a consolidated
subsidiary  of ours,  with  minority  interests  to the  extent  of  third-party
investor participation, commencing in the quarter ending January 2, 2005.

     We maintain  investment  portfolio  holdings of various issuers,  types and
maturities.  As of  September  26,  2004  these  investments  consisted  of  the
following (in thousands):



                                                                                                  
      Cash equivalents included in "Cash and cash equivalents" on our
         condensed consolidated balance sheet........................................................$     412,892
      Short-term investments.........................................................................      167,948
                                                                                                     -------------
         Total cash equivalents and short-term investments...........................................      580,840
      Restricted cash equivalents....................................................................       32,866
      Non-current investments........................................................................       66,073
                                                                                                     -------------
                                                                                                     $     679,779
                                                                                                     =============
      Securities sold with an obligation for us to purchase..........................................$      (7,546)
                                                                                                     =============

     Our  cash  equivalents  are  short-term,  highly  liquid  investments  with
maturities of three months or less when acquired and  consisted  principally  of
cash in a treasury mutual fund and bank money market accounts, overnight reverse
repurchase  agreements  collateralized  by United States  government agency debt
securities,  interest-bearing  brokerage  and bank accounts with a stable value,
United  States   government  debt  securities  and  commercial   paper  of  high
credit-quality entities.

     At September  26, 2004 our  investments  were  classified  in the following
general types or categories (in thousands):



                                                                                         Carrying Value
                                                                        At Fair          --------------
                         Type                            At Cost       Value (c)      Amount         Percent
                         ----                            -------       ---------      ------         -------
                                                                                           
      Cash equivalents (a)............................$   412,892     $   412,892    $  412,892        61%
      Restricted cash equivalents.....................     32,866          32,866        32,866         5%
      Securities accounted for as:
           Trading securities.........................        317              60            60         -%
           Available-for-sale securities (b)..........    138,919         141,235       141,235        21%
      Non-current investments held in deferred
        compensation trusts accounted for at cost.....     22,196          28,547        22,196         3%
      Participation in commercial term loans..........      3,650           3,650         3,650         1%
      Other current and non-current investments in
        investment limited partnerships, similar
        investment entities and other investments
        accounted for at cost.........................     28,602          45,078        28,602         4%
      Other non-current investments accounted for at:
           Cost.......................................     30,491          30,491        30,491         4%
           Equity.....................................        900          37,634         7,787         1%
                                                      -----------     -----------    ----------      -----
      Total cash equivalents and long investment
        positions.....................................$   670,833     $   732,453    $  679,779       100%
                                                      ===========     ===========    ==========       ====
      Securities sold with an obligation for us to
        purchase......................................$    (7,797)    $    (7,546)   $   (7,546)       N/A
                                                      ===========     ===========    ==========


     (a)  Includes $2,711,000 of cash equivalents held in deferred  compensation
          trusts and does not include  $1,935,000  (included in "Receivables" in
          the accompanying  condensed consolidated balance sheet as of September
          26, 2004) of  reinvestments  from proceeds from the sale of securities
          which had not settled as of September 26, 2004.
     (b)  Includes $14,331,000 of preferred shares of CDOs which, if sold, would
          require us to use the proceeds to repay our related  notes  payable of
          $11,610,000.
     (c)  There can be no  assurance  that we would be able to sell  certain  of
          these investments at these amounts.

     Our  marketable  securities  are  reported  at fair  market  value  and are
classified  and accounted for either as  "available-for-sale"  or "trading" with
the  resulting  net  unrealized  holding  gains or losses,  net of income taxes,
reported  either  as a  separate  component  of  comprehensive  income  or  loss
bypassing net income or net loss or included as a component of net income or net
loss,  respectively.  Our investments in preferred  shares of CDOs are accounted
for  similar  to debt  securities  and  are  classified  as  available-for-sale.
Investment  limited  partnerships  and  similar  investment  entities  and other
current  and  non-current  investments  in  which  we do  not  have  significant
influence over the investee are accounted for at cost. Realized gains and losses
on investment  limited  partnerships and similar  investment  entities and other
current and non-current  investments recorded at cost are reported as investment
income or loss in the period in which the  securities  are sold.  A  non-current
common stock investment in which we have significant influence over the investee
is accounted for in accordance with the equity method of accounting  under which
our  results  of  operations  include  our  share of the  income  or loss of the
investee.  We review all of our investments in which we have  unrealized  losses
and recognize  investment  losses currently for any unrealized losses we deem to
be other than temporary.  The cost-basis  component of investments  reflected in
the table above  represents  original  cost less a permanent  reduction  for any
unrealized losses that were deemed to be other than temporary.

Sensitivity Analysis

     For purposes of this  disclosure,  market risk  sensitive  instruments  are
divided into two categories:  instruments  entered into for trading purposes and
instruments entered into for purposes other than trading. Our estimate of market
risk exposure is presented for each class of financial instruments held by us at
September  26, 2004 for which an  immediate  adverse  market  movement  causes a
potential material impact on our financial position or results of operations. We
believe that the rates of adverse market movements described below represent the
hypothetical  loss to future earnings and do not represent the maximum  possible
loss nor any expected actual loss, even under adverse conditions, because actual
adverse  fluctuations  would likely  differ.  In addition,  since our investment
portfolio is subject to change  based on our  portfolio  management  strategy as
well as market conditions, these estimates are not necessarily indicative of the
actual results which may occur.

     The  following  tables  reflect the  estimated  market risk  exposure as of
September 26, 2004 based upon assumed  immediate  adverse effects as noted below
(in thousands):



Trading Purposes:
                                                                                 Carrying            Equity
                                                                                   Value           Price Risk
                                                                                   -----           ----------
                                                                                             
      Equity securities..........................................................$    60           $     (6)


     The  sensitivity  analysis of financial  instruments  held at September 26,
2004 for trading purposes  assumes an  instantaneous  10% decrease in the equity
markets in which we are invested  from their  levels at  September  26, 2004 and
with all other variables held constant.  The securities  included in the trading
portfolio  do not include any  investments  in debt  securities  or  investments
denominated in foreign currency and, accordingly, there is no interest rate risk
or foreign currency risk.

Other Than Trading Purposes:


                                                          Carrying     Interest      Equity           Foreign
                                                            Value      Rate Risk   Price Risk      Currency Risk
                                                            -----      ---------   ----------      -------------

                                                                                        
      Cash equivalents..................................$  412,892    $      (64)   $      --       $       --
      Restricted cash equivalents.......................    32,866            --           --               --
      Available-for-sale corporate debt securities,
         other than commercial paper....................    17,052          (682)          --               --
      Available-for-sale equity securities..............    47,876            --       (4,788)              --
      Available-for-sale asset-backed securities........    26,140        (2,091)          --               --
      Available-for-sale preferred shares of CDOs.......    18,512          (749)          --               --
      Available-for-sale United States government and
         government agency debt securities..............    15,928           (53)          --               --
      Available-for-sale debt mutual fund...............     8,616          (172)          --               --
      Available-for-sale commercial paper...............     7,111           (18)          --               --
      Participation in commercial term loans............     3,650            --         (365)              --
      Other investments.................................    89,076          (685)      (7,490)          (1,307)
      Foreign currency forward contract in an asset
         position.......................................       243            --           --           (1,257)
      Foreign currency put and call options in a net
         asset position.................................       552            --           --           (1,088)
      Securities sold with an obligation to purchase....    (7,546)           --         (755)
      Notes payable and long-term debt, excluding
         capitalized lease obligations..................   508,086       (21,144)          --               --
      Interest rate swap agreement in a payable
         position.......................................       449          (231)          --               --


     The  sensitivity  analysis of financial  instruments  held at September 26,
2004 for purposes  other than  trading  assumes (1) an  instantaneous  change in
market interest rates of one percentage point, (2) an instantaneous 10% decrease
in the equity  markets in which we are  invested  and (3) an  instantaneous  10%
decrease in the foreign currency exchange rates versus the United States dollar,
each from their levels at September 26, 2004 and with all other  variables  held
constant.  The equity  price risk  reflects  the impact of a 10% decrease in the
carrying value of our equity securities,  including those in "Other investments"
in the table above. We have also assumed equity price risk for our participation
in commercial term loans since the loans are in default and we expect to receive
stock in exchange for our investment. The sensitivity analysis also assumes that
the decreases in the equity  markets and foreign  exchange  rates are other than
temporary.  We have not  reduced  the equity  price risk for  available-for-sale
investments and cost investments to the extent of unrealized gains on certain of
those  investments,  which would limit or eliminate  the effect of the indicated
market  risk on our  results  of  operations  and,  for  cost  investments,  our
financial position.

     For purposes of this analysis, our debt investments and preferred shares of
CDOs  with  interest  rate  risk had a range of  remaining  maturities  and were
assumed to have weighted average  remaining  maturities as of September 26, 2004
as follows:


                                                                                  Range            Weighted Average
                                                                                  -----            ----------------
                                                                                                  
      Cash equivalents (other than money market funds, interest- bearing
        brokerage and bank accounts, and overnight reverse
        repurchase agreements)............................................    2 days-88 days               81 days
      Corporate debt securities, other than commercial paper..............  8 months-6 years               4 years
      Asset-backed securities............................................. 1 2/3 years-30 1/4 years        8 years
      CDOs underlying preferred shares....................................   3 years-9 2/3 years           7 years
      United States government and government agency debt securities...... 4 days-11 months               4 months
      Debt mutual fund....................................................   1 day-36 years                2 years
      Commercial paper.................................................... 10 days-7 1/2 months           3 months
      Debt securities included in other investments (principally held by
        investment limited partnerships and similar investment entities)..         (a)                    10 years



     (a)  Information  is not available for the underlying  debt  investments of
          these entities.

     The interest rate risk reflects, for each of these debt investments and the
preferred  shares of CDOs, the impact on our results of operations.  Assuming we
reinvest in similar  securities at the time these securities  mature, the effect
of the  interest  rate risk of an  increase  of one  percentage  point above the
existing levels would continue beyond the maturities assumed.  The interest rate
risk for our preferred  shares of CDOs excludes  those  portions of the CDOs for
which the risk has been  fully  hedged.  Our cash  equivalents  included  $283.7
million  of mutual  fund and bank money  market  accounts  and  interest-bearing
brokerage  and bank  accounts  which are designed to maintain a stable value and
$100.3 million of overnight  reverse  repurchase  agreements  which mature daily
and, as a result,  were assumed to have no interest  rate risk.  Our  restricted
cash  equivalents were invested in money market funds and are assumed to have no
interest rate risk since those funds are designed to maintain a stable value.

     The interest  rate risk  presented  with  respect to our notes  payable and
long-term debt,  excluding  capitalized lease  obligations,  relates only to our
fixed-rate debt and represents the potential impact a decrease in interest rates
of one  percentage  point  has on the  fair  value  of this  debt and not on our
financial  position  or  our  results  of  operations.  The  fair  value  of our
variable-rate  debt  approximates the carrying value since the floating interest
rate  resets  monthly  or  quarterly.  However,  we have an  interest  rate swap
agreement  but with an embedded  written call option on our  variable-rate  bank
loan. As interest  rates  decrease,  the fair market values of the interest rate
swap agreement and the written call option both decrease, but not necessarily by
the same amount.  The interest rate risk  presented with respect to the interest
rate swap agreement  represents the potential impact the indicated change has on
the net fair value of the swap agreement and embedded written call option and on
our financial position and results of operations.

     For  investments  held  since  December  28,  2003  in  investment  limited
partnerships and similar investment entities,  all of which are accounted for at
cost, and other non-current  investments  included in "Other investments" in the
table above,  the sensitivity  analysis assumes that the investment mix for each
such investment between equity versus debt securities and securities denominated
in United States dollars versus foreign currencies was unchanged since that date
since more current  information  was not readily  available.  To the extent such
entities  invest in  convertible  bonds which trade  primarily on the conversion
feature of the securities rather than on the stated interest rate, this analysis
assumed equity price risk but no interest rate risk.  The foreign  currency risk
presented  excludes those  investments  where the  investment  manager has fully
hedged the risk.  The foreign  currency risk presented also excludes the portion
of risk  associated  with our investment in Jurlique,  which is also included in
"Other investments," that is hedged by the foreign currency put and call options
and by the portion of  Jurlique's  operations  which are  denominated  in United
States dollars.  The foreign currency risk presented with respect to the foreign
currency forward  contract and foreign currency put and call options  represents
the potential  impact the indicated  change has on the net fair value of each of
these respective financial instruments and on our financial position and results
of operations and has been determined by an independent broker/dealer.

Item 4.  Controls and Procedures

     Our management,  including our Chairman and Chief Executive Officer and our
Chief Financial Officer,  evaluated the effectiveness of our disclosure controls
and procedures (as such term is defined in Rules  13a-15(e) and 15d-15(e)  under
the Securities  Exchange Act of 1934, as amended (the "Exchange Act")) as of the
end of the period covered by this quarterly report.  Based upon that evaluation,
our Chairman and Chief Executive  Officer and Chief Financial  Officer concluded
that, as of the end of such period,  our disclosure  controls and procedures are
effective to ensure that  information  required to be included in the reports we
file or submit under the Exchange Act is  recorded,  processed,  summarized  and
reported as and when required.  During the third quarter of 2004, our subsidiary
Sybra,  Inc.  began  installing a new  automated  back office and  point-of-sale
system  in our  company-owned  Arby's  restaurants  that will  automate  certain
reporting and processing functions that were previously done manually.  No other
change in our internal control over financial reporting was made during our most
recent fiscal  quarter that  materially  affected,  or is  reasonably  likely to
materially affect, our internal control over financial reporting.

Part II. OTHER INFORMATION

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS AND PROJECTIONS

     This Quarterly  Report on Form 10-Q contains or  incorporates  by reference
certain statements that are not historical facts,  including,  most importantly,
information  concerning  possible or assumed  future  results of  operations  of
Triarc  Companies,  Inc.  and its  subsidiaries  (collectively  "Triarc"  or the
"Company"),  and those statements  preceded by, followed by, or that include the
words "may," "believes,"  "expects,"  "anticipates," or the negation thereof, or
similar  expressions,  that constitute  "forward-looking  statements" within the
meaning of the Private  Securities  Litigation  Reform Act of 1995 (the  "Reform
Act"). All statements that address operating performance, events or developments
that are expected or  anticipated to occur in the future,  including  statements
relating to revenue growth,  earnings per share growth or statements  expressing
general optimism about future operating results, are forward-looking  statements
within the meaning of the Reform Act. These forward-looking statements are based
on our current expectations, speak only as of the date of this Form 10-Q and are
susceptible to a number of risks,  uncertainties  and other factors.  Our actual
results,  performance  and  achievements  may differ  materially from any future
results,   performance   or   achievements   expressed   or   implied   by  such
forward-looking statements. For those statements, we claim the protection of the
safe harbor for  forward-looking  statements  contained in the Reform Act.  Many
important  factors could affect our future results and could cause those results
to differ  materially  from those  expressed in the  forward-looking  statements
contained herein. Such factors include, but are not limited to, the following:

     o    competition,  including  pricing  pressures,  the potential  impact of
          competitors'   new  units  on  sales  by  Arby's(R)   restaurants  and
          consumers'  perceptions of the relative quality,  variety and value of
          the food products offered;

     o    success of operating initiatives;

     o    development costs;

     o    advertising and promotional efforts;

     o    brand awareness;

     o    the existence or absence of positive or adverse publicity;

     o    new  product  and   concept   development   by  the  Company  and  its
          competitors,  and market  acceptance of such new product offerings and
          concepts;

     o    changes  in  consumer  tastes  and  preferences,   including   changes
          resulting  from concerns over  nutritional  or safety aspects of beef,
          poultry,  french  fries or other  foods or the  effects of  food-borne
          illnesses such as "mad cow disease" and avian influenza or "bird flu";

     o    changes in spending patterns and demographic trends;

     o    the business and financial viability of key franchisees;

     o    the timely payment of franchisee obligations due to the Company;

     o    availability,  location and terms of sites for restaurant  development
          by the Company and its franchisees;

     o    the ability of franchisees to open new  restaurants in accordance with
          their development commitments, including the ability of franchisees to
          finance restaurant development;

     o    delays in opening new restaurants or completing remodels;

     o    anticipated or  unanticipated  restaurant  closures by the Company and
          its franchisees;

     o    the ability to identify, attract and retain potential franchisees with
          sufficient  experience and financial  resources to develop and operate
          Arby's restaurants;

     o    changes in business strategy or development plans, and the willingness
          of franchisees to participate in the Company's strategy;

     o    business  abilities  and judgment of the  Company's  and  franchisees'
          management and other personnel;

     o    availability of qualified  restaurant  personnel to the Company and to
          franchisees;

     o    the   Company's   ability,   if  necessary,   to  secure   alternative
          distribution  of supplies  of food,  equipment  and other  products to
          Arby's  restaurants at competitive rates and in adequate amounts,  and
          the  potential   financial   impact  of  any   interruptions  in  such
          distribution;

     o    adverse weather conditions;

     o    changes in  commodity  (including  beef),  labor,  supplies  and other
          operating costs and availability and cost of insurance;

     o    significant reductions in the Company's client assets under management
          (and thus in the Company's advisory fee revenue),  due to such factors
          as weak performance of the Company's investment products (either on an
          absolute basis or relative to the Company's competitors),  substantial
          illiquidity or volatility in the fixed income markets and  instruments
          in  which  the  Company  trades,  loss  of  key  portfolio  management
          personnel,  reduced  investor  demand  for  alternative  fixed  income
          investment  products,  and loss of investor  confidence due to adverse
          publicity;

     o    increased  competition from other  alternative fixed income investment
          managers;

     o    pricing  pressure on the advisory fees that the Company can charge for
          its investment advisory services;

     o    difficulty in increasing assets under management, or managing existing
          assets, due to market-related constraints on trading capacity;

     o    the removal of the Company as investment manager of one or more of the
          collateral debt obligations (CDOs) it manages, or the reduction in the
          Company's CDO management  fees because of payment  defaults by issuers
          of the underlying collateral;

     o    availability,   terms  (including   changes  in  interest  rates)  and
          deployment of capital;

     o    changes in national,  regional and local economic, market, business or
          political  conditions in the countries and other  territories in which
          the Company and its franchisees operate;

     o    changes  in  government   regulations,   including  franchising  laws,
          investment management regulations, accounting standards, environmental
          laws, overtime rules, minimum wage rates and taxation rates;

     o    the costs, uncertainties and other effects of legal, environmental and
          administrative proceedings;

     o    the  impact of  general  economic  conditions  on  consumer  spending,
          including  a  slower  consumer  economy  and  the  effects  of  war or
          terrorist activities;

     o    our ability to identify appropriate  acquisition targets in the future
          and  to  successfully  integrate  any  future  acquisitions  into  our
          existing operations; and

     o    other  risks  and   uncertainties   affecting   the  Company  and  its
          subsidiaries  referred  to in our  Annual  Report on Form 10-K for the
          fiscal  year  ended  December  28,  2003  (see  especially   "Item  1.
          Business--Risk  Factors"  and  "Item 7.  Management's  Discussion  and
          Analysis of Financial Condition and Results of Operations") and in our
          other current and periodic  filings with the  Securities  and Exchange
          Commission,  all of which  are  difficult  or  impossible  to  predict
          accurately and many of which are beyond our control.

     We do not  undertake  and  specifically  decline any  obligation to release
publicly  the result of any  revisions  that may be made to any  forward-looking
statements to reflect events or circumstances  after the date of such statements
or to  reflect  the  occurrence  of  anticipated  or  unanticipated  events.  In
addition,  it is our policy generally not to make any specific projections as to
future  earnings,  and  we do  not  endorse  any  projections  regarding  future
performance that may be made by third parties.

Item 1.  Legal Proceedings

     In 2001, a vacant  property  owned by Adams Packing  Association,  Inc., an
inactive,  indirect  subsidiary  of ours,  was listed by the U.S.  Environmental
Protection Agency on the Comprehensive Environmental Response,  Compensation and
Liability  Information  System,  which we refer to as CERCLIS,  list of known or
suspected  contaminated sites. The CERCLIS listing appears to have been based on
an allegation  that a former tenant of Adams Packing  conducted  drum  recycling
operations  at the site from some time prior to 1971 until the late  1970s.  The
business  operations  of Adams  Packing were sold in December  1992. In February
2003,  Adams  Packing and the Florida  Department of  Environmental  Protection,
which we refer to as the Florida DEP,  agreed to a consent  order that  provided
for development of a work plan for further investigation of the site and limited
remediation  of the  identified  contamination.  In May 2003,  the  Florida  DEP
approved the work plan  submitted by Adams  Packing's  environmental  consultant
and, as of September 26, 2004,  the work at the site has been  completed.  Adams
Packing submitted its contamination assessment report to the Florida DEP in late
March  2004.  In August  2004,  the  Florida  DEP  agreed to a  monitoring  plan
consisting of two sampling  events after which it will  reevaluate  the need, if
any, for additional assessment or remediation. The sampling events are currently
expected  to occur in December  2004 and May 2005.  To date,  Adams  Packing has
expended approximately $1.6 million with respect to the project. Based on a cost
estimate for  completion  of the sampling  events  developed by Adams  Packing's
environmental  consultant,  and after taking into  consideration  various  legal
defenses  available to us,  including Adams Packing,  the remaining costs of the
remediation  at the site are not expected to have a material  adverse  effect on
our  consolidated  financial  position  or  results of  operation.  See "Item 7.
Management's  Discussion  and  Analysis of  Financial  Condition  and Results of
Operations--Legal and Environmental Matters."

Item 2. Changes in  Securities,  Use of Proceeds And Issuer  Purchases of Equity
Securities.

     The following  table  provides  information  with respect to repurchases of
shares of our common stock by us and our "affiliated  purchasers" (as defined in
Rule 10b-18(a)(3) under the Securities  Exchange Act of 1934, as amended) during
the third fiscal quarter of 2004:


                   Issuer Repurchases of Equity Securities (1)

- ------------------------------- ---------------------- --------------------- --------------------------- -------------------------
                                                                               Total Number of Shares       Approximate Dollar
                                                                                Purchased As Part of       Value of Shares That
                                   Total Number of      Average Price Paid    Publicly Announced Plan      May Yet Be Purchased
            Period              Shares Purchased (2)      Per Share (2)               (1) (2)               Under the Plan (1)
- ------------------------------- ---------------------- --------------------- --------------------------- -------------------------
- ------------------------------- ---------------------- --------------------- --------------------------- -------------------------
                                                                                               
        June 28, 2004
            through                      ---                   ---                      ---                    $48,618,750
        July 25, 2004
- ------------------------------- ---------------------- --------------------- --------------------------- -------------------------
- ------------------------------- ---------------------- --------------------- --------------------------- -------------------------
        July 26, 2004               7,011 Class A        $9.61 (Class A)
           through                 10,974 Class B,       $9.75 (Class B,                ---                    $48,618,750
       August 22, 2004                 Series 1             Series 1)
- ------------------------------- ---------------------- --------------------- --------------------------- -------------------------
- ------------------------------- ---------------------- --------------------- --------------------------- -------------------------
       August 23, 2004
           through                       ---                   ---                      ---                    $48,618,750
      September 26, 2004
- ------------------------------- ---------------------- --------------------- --------------------------- -------------------------


(1)   On June 3, 2003, we announced that our existing stock repurchase program
      had been extended until January 18, 2005 and that the amount available
      under the program had been replenished to permit the purchase of up to $50
      million of our Class A Common Stock. On August 11, 2003, we announced that
      the stock repurchase program had been amended to permit us to use the $50
      million to repurchase shares of our Class B Common Stock, Series 1. No
      transactions were effected under our stock repurchase program during the
      third fiscal quarter of 2004.

(2)   Reflects an aggregate of 7,011 shares of Class A Common Stock and 10, 974
      shares of Class B Common Stock, Series 1, tendered as payment of the
      exercise price of employee stock options under the Company's 1993 Equity
      Participation Plan. The shares were valued at the closing price of the
      Class A Common Stock and Class B Common Stock, Series 1, on the date of
      exercise of the employee stock options.

Item 5.  Other Information.

      Triarc and Deerfield & Company LLC ("Deerfield") previously formed an
investment adviser, TDM Advisors LLC ("TDM"), to manage the assets of Triarc
Deerfield Investment Corporation ("Triarc Deerfield"), a recently formed
business development company that, as previously announced, filed a registration
statement with the Securities and Exchange Commission relating to a proposed
$500 million initial public offering of its common stock (the "Offering"). As a
result of our acquisition of a majority interest in Deerfield, TDM is now a
wholly-owned subsidiary of Deerfield and an indirect subsidiary of Triarc. TDM
is currently the only stockholder of Triarc Deerfield. Triarc Deerfield has
decided not to pursue the proposed Offering due to market conditions and on
November 4, 2004 withdrew its registration statement with respect to the
proposed Offering. Deerfield is currently reviewing alternative options for
raising additional capital.

Item 6.  Exhibits and Reports on Form 8-K.

(a)      Exhibits

2.1      Purchase  Agreement,  dated as of June 26, 2004, by and among Triarc
         Companies,  Inc., Sachs Capital  Management LLC, Deerfield Partners
         Fund II LLC, Scott A. Roberts,  Marvin Shrear and Gregory H. Sachs,
         incorporated  herein by reference to Exhibit 2.1 to Triarc's Current
         Report on Form 8-K dated June 28, 2004 (SEC file no. 1-2207).

3.1      By-laws of Triarc  Companies,  Inc., as currently in effect,
         incorporated  herein by reference to Exhibit 3.1 to Triarc's Current
         Report on Form 8-K dated November 5, 2004 (SEC file no. 1-2207).

10.1     Fourth Amended and Restated Operating Agreement of Deerfield & Company
         LLC, dated as of June 26, 2004, incorporated herein by reference to
         Exhibit 10.4 to Triarc's Current Report on Form 8-K dated June 28, 2004
         (SEC file no. 1-2207).

10.2     Commitment Agreement, dated as of June 26, 2004, by and among Triarc
         Companies, Inc., Sachs Capital Management LLC, Scott A. Roberts and
         Deerfield Capital Management LLC, incorporated herein by reference to
         Exhibit 10.5 to Triarc's Current Report on Form 8-K dated June 28, 2004
         (SEC file no. 1-2207).

10.3     Employment Agreement, dated as of June 26, 2004, by and among Deerfield
         & Company LLC, Deerfield Capital Management LLC and Gregory H. Sachs,
         incorporated herein by reference to Exhibit 10.6 to Triarc's Current
         Report on Form 8-K dated July 22, 2004 (SEC file no. 1-2207).

10.4     Supplement, dated as of July 14, 2004, to the Employment Agreement,
         dated as of June 26, 2004, by and among Deerfield & Company LLC,
         Deerfield Capital Management LLC and Gregory H. Sachs, incorporated
         herein by reference to Exhibit 10.7 to Triarc's Current Report on Form
         8-K dated July 22, 2004 (SEC file no. 1-2207).

10.5     First Amendment to Purchase Agreement, dated as of July 22, 2004, by
         and among Triarc Companies, Inc., Sachs Capital Management LLC,
         Deerfield Partners Fund II LLC, Scott A. Roberts, Marvin Shrear and
         Gregory H. Sachs, incorporated herein by reference to Exhibit 10.8 to
         Triarc's Current Report on Form 8-K dated July 22, 2004 (SEC file no.
         1-2207).

10.6     First Supplement to Fourth Amended and Restated Operating Agreement of
         Deerfield & Company LLC, dated as of July 22, 2004, incorporated herein
         by reference to Exhibit 10.9 to Triarc's Current Report on Form 8-K
         dated July 22, 2004 (SEC file no. 1-2207).

10.7     Second Supplement to Fourth Amended and Restated Operating Agreement of
         Deerfield & Company LLC, dated as of August 16, 2004, incorporated
         herein by reference to Exhibit 10.10 to Triarc's Amendment No.1 to
         Current Report on Form 8-K/A dated October 5, 2004 (SEC file no.
         1-2207).

10.8     Third Supplement to Fourth Amended and Restated Operating Agreement of
         Deerfield & Company LLC, dated as of August 20, 2004, incorporated
         herein by reference to Exhibit 10.11 to Triarc's Amendment No.1 to
         Current Report on Form 8-K/A dated October 5, 2004 (SEC file no.
         1-2207).

31.1     Certification of the Chief Executive Officer pursuant to Section 302 of
         the Sarbanes-Oxley Act of 2002.

31.2     Certification of the Chief Financial Officer pursuant to Section 302 of
         the Sarbanes-Oxley Act of 2002.

32.1     Certification  of the  Chief  Executive  Officer  and Chief  Financial
         Officer  pursuant  to  Section 906  of the Sarbanes-Oxley Act of 2002,
         furnished as an exhibit to this report on Form 10-Q.




                                   SIGNATURES

      Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

                                                  TRIARC COMPANIES, INC.
                                                  (Registrant)


Date:  November 5, 2004                           By: /S/ FRANCIS T. McCARRON
                                                  ---------------------------
                                                  Francis T. McCarron
                                                  Senior Vice President and
                                                  Chief Financial Officer
                                                  (On behalf of the Company)


Date:  November 5, 2004                           By: /S/ FRED H. SCHAEFER
                                                  ---------------------------
                                                  Fred H. Schaefer
                                                  Senior Vice President and
                                                  Chief Accounting Officer
                                                  (Principal Accounting Officer)


Exhibit Index

 Exhibit
    No.                      Description
 -------                     -----------

2.1      Purchase Agreement,  dated as of June 26, 2004, by and among Triarc
         Companies,  Inc., Sachs Capital Management  LLC,  Deerfield  Partners
         Fund II LLC,  Scott A. Roberts,  Marvin Shrear and Gregory H. Sachs,
         incorporated  herein by  reference  to Exhibit 2.1 to Triarc's
         Current Report on Form 8-K dated June 28, 2004 (SEC file no. 1-2207).

3.1      By-laws of Triarc  Companies,  Inc.,  as currently in effect,
         incorporated  herein by reference to Exhibit 3.1 to Triarc's Current
         Report on Form 8-K dated November 5, 2004 (SEC file no. 1-2207).

10.1     Fourth Amended and Restated Operating Agreement of Deerfield & Company
         LLC, dated as of June 26, 2004, incorporated herein by reference to
         Exhibit 10.4 to Triarc's Current Report on Form 8-K dated June 28, 2004
         (SEC file no. 1-2207).

10.2     Commitment Agreement, dated as of June 26, 2004, by and among Triarc
         Companies, Inc., Sachs Capital Management LLC, Scott A. Roberts and
         Deerfield Capital Management LLC, incorporated herein by reference to
         Exhibit 10.5 to Triarc's Current Report on Form 8-K dated June 28, 2004
         (SEC file no. 1-2207).

10.3     Employment Agreement, dated as of June 26, 2004, by and among Deerfield
         & Company LLC, Deerfield Capital Management LLC and Gregory H. Sachs,
         incorporated herein by reference to Exhibit 10.6 to Triarc's Current
         Report on Form 8-K dated July 22, 2004 (SEC file no. 1-2207).

10.4     Supplement, dated as of July 14, 2004, to the Employment Agreement,
         dated as of June 26, 2004, by and among Deerfield & Company LLC,
         Deerfield Capital Management LLC and Gregory H. Sachs, incorporated
         herein by reference to Exhibit 10.7 to Triarc's Current Report on Form
         8-K dated July 22, 2004 (SEC file no. 1-2207).

10.5     First Amendment to Purchase Agreement, dated as of July 22, 2004, by
         and among Triarc Companies, Inc., Sachs Capital Management LLC,
         Deerfield Partners Fund II LLC, Scott A. Roberts, Marvin Shrear and
         Gregory H. Sachs, incorporated herein by reference to Exhibit 10.8 to
         Triarc's Current Report on Form 8-K dated July 22, 2004 (SEC file no.
         1-2207).

10.6     First Supplement to Fourth Amended and Restated Operating Agreement of
         Deerfield & Company LLC, dated as of July 22, 2004, incorporated herein
         by reference to Exhibit 10.9 to Triarc's Current Report on Form 8-K
         dated July 22, 2004 (SEC file no. 1-2207).

10.7     Second Supplement to Fourth Amended and Restated Operating Agreement of
         Deerfield & Company LLC, dated as of August 16, 2004, incorporated
         herein by reference to Exhibit 10.10 to Triarc's Amendment No.1 to
         Current Report on Form 8-K/A dated October 5, 2004 (SEC file no.
         1-2207).

10.8     Third Supplement to Fourth Amended and Restated Operating Agreement of
         Deerfield & Company LLC, dated as of August 20, 2004, incorporated
         herein by reference to Exhibit 10.11 to Triarc's Amendment No.1 to
         Current Report on Form 8-K/A dated October 5, 2004 (SEC file no.
         1-2207).

31.1     Certification of the Chief Executive Officer pursuant to Section 302 of
         the  Sarbanes-Oxley  Act of 2002.

31.2     Certification of the Chief Financial Officer pursuant to Section 302 of
         the  Sarbanes-Oxley  Act of 2002.

32.1     Certification of the Chief Executive Officer and Chief Financial
         Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002,
         furnished as an exhibit to this report on Form 10-Q.




                                                                   EXHIBIT 31.1
                                 CERTIFICATIONS

     I, Nelson Peltz, the Chairman and Chief Executive Officer of Triarc
Companies, Inc., certify that:

     1. I have reviewed this quarterly report on Form 10-Q of Triarc Companies,
Inc.;

     2. Based on my knowledge, this report does not contain any untrue statement
of a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements were
made, not misleading with respect to the period covered by this report;

     3. Based on my knowledge, the financial statements, and other financial
information included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the registrant as
of, and for, the periods presented in this report;

     4. The registrant's other certifying officer(s) and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

         a) Designed such disclosure controls and procedures, or caused such
disclosure controls and procedures to be designed under our supervision, to
ensure that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those entities,
particularly during the period in which this report is being prepared;

         b) Evaluated the effectiveness of the registrant's disclosure controls
and procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures, as of the end of the
period covered by this report based on such evaluation; and

         c) Disclosed in this report any change in the registrant's internal
control over financial reporting that occurred during the registrant's most
recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an
annual report) that has materially affected, or is reasonably likely to
materially affect, the registrant's internal control over financial reporting;
and

     5. The registrant's other certifying officer(s) and I have disclosed, based
on our most recent evaluation of internal control over financial reporting, to
the registrant's auditors and the audit committee of the registrant's board of
directors (or persons performing the equivalent functions):

         a) All significant deficiencies and material weaknesses in the design
or operation of internal control over financial reporting which are reasonably
likely to adversely affect the registrant's ability to record, process,
summarize and report financial information; and

         b) Any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrant's internal control
over financial reporting.



Date:  November 5, 2004
                                                     /S/ NELSON PELTZ
                                           ------------------------------------
                                                        Nelson Peltz
                                           Chairman and Chief Executive Officer





                                                                   EXHIBIT 31.2
                                 CERTIFICATIONS

    I, Francis T. McCarron, the Senior Vice President and Chief Financial
Officer of Triarc Companies, Inc., certify that:

     1. I have reviewed this quarterly report on Form 10-Q of Triarc Companies,
Inc.;

     2. Based on my knowledge, this report does not contain any untrue statement
of a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements were
made, not misleading with respect to the period covered by this report;

     3. Based on my knowledge, the financial statements, and other financial
information included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the registrant as
of, and for, the periods presented in this report;

     4. The registrant's other certifying officer(s) and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

         a) Designed such disclosure controls and procedures, or caused such
disclosure controls and procedures to be designed under our supervision, to
ensure that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those entities,
particularly during the period in which this report is being prepared;

         b) Evaluated the effectiveness of the registrant's disclosure controls
and procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures, as of the end of the
period covered by this report based on such evaluation; and

         c) Disclosed in this report any change in the registrant's internal
control over financial reporting that occurred during the registrant's most
recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an
annual report) that has materially affected, or is reasonably likely to
materially affect, the registrant's internal control over financial reporting;
and

     5. The registrant's other certifying officer(s) and I have disclosed, based
on our most recent evaluation of internal control over financial reporting, to
the registrant's auditors and the audit committee of the registrant's board of
directors (or persons performing the equivalent functions):

         a) All significant deficiencies and material weaknesses in the design
or operation of internal control over financial reporting which are reasonably
likely to adversely affect the registrant's ability to record, process,
summarize and report financial information; and

         b) Any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrant's internal control
over financial reporting.



Date:  November 5, 2004
                                           /S/ FRANCIS T. McCARRON
                              -------------------------------------------------
                                             Francis T. McCarron
                              Senior Vice President and Chief Financial Officer



                                                                   EXHIBIT 32.1

                            Certification Pursuant to
                             18 U.S.C. Section 1350
                             As Adopted Pursuant to
                  Section 906 of the Sarbanes-Oxley Act of 2002

     Pursuant to section 906 of the  Sarbanes-Oxley Act of 2002 (subsections (a)
and (b) of section 1350,  chapter 63 of title 18,  United States Code),  each of
the undersigned officers of Triarc Companies,  Inc., a Delaware corporation (the
"Company"), does hereby certify, to the best of such officer's knowledge, that:

     The Quarterly  Report on Form 10-Q for the quarter ended September 26, 2004
(the "Form 10-Q") of the Company fully complies with the requirements of section
13(a) or 15(d) of the Securities Exchange Act of 1934 and information  contained
in the Form 10-Q  fairly  presents,  in all  material  respects,  the  financial
condition and results of operations of the Company.


Dated:   November 5, 2004                  /S/ NELSON PELTZ
                                           ------------------------------------
                                           Nelson Peltz
                                           Chairman and Chief Executive Officer



Dated:   November 5, 2004                  /S/ FRANCIS T. McCARRON
                                           ------------------------------------
                                           Francis T. McCarron
                                           Senior Vice President and Chief
                                           Financial Officer



     A signed  original of this  written  statement  required by Section 906, or
other document authenticating, acknowledging or otherwise adopting the signature
that  appears  in typed  form  within the  electronic  version  of this  written
statement  required by Section 906, has been provided to Triarc Companies,  Inc.
and will be retained by Triarc  Companies,  Inc. and furnished to the Securities
and Exchange Commission or its staff upon request.

     The foregoing  certification  is being furnished solely pursuant to section
906 of the  Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350,
chapter 63 of title 18,  United  States  Code) and is not being filed as part of
the Form 10-Q or as a separate disclosure document.