News
Wendy's comps, Arby's Roastburger boost Q1 results
May 6, 2009
ATLANTA — Wendy's/Arby's Group Inc.'s comparable-store sales are up 1.0 percent at Wendy's North America and down 8.7 percent for Arby's North Americafor the first quarter ended March 29, the company has announced.
Wendy's North America company-operated store comps were up 0.3 percent despite approximately 300 fewer restaurants serving breakfast. Excluding the impact of fewer restaurants serving breakfast in the first quarter of 2009, comps would have increased approximately 1.6 percent.
Wendy's North America franchise store comps increased 1.2 percent with franchise sales less impacted by the reduction in the number of restaurants serving breakfast.
Arby's North America company-operated store comps were down 8.0 percent, and North America franchise store comps were down 9.1 percent. The launch of the new Roastburger line of sandwiches boosted systemwide comps with an improvement to negative 2.5 percent for the month of March.
Consolidated revenues for the quarter were $864.0 million, compared to $303 million in the same quarter last year for Triarc Cos. Inc. The 2009 results include the effect of the September 2008 merger between Triarc and Wendy's International Inc. However, results for the first quarter of 2008 only include results for Triarc.
Net loss for the quarter was $10.9 million, compared to a loss of $67.5 million for the same period last year at Triarc. The loss includes a net after-tax special expense items of approximately $15 million, including integration-related expenses, impairment, depreciation adjustments, asset write-offs and investment losses.
Wendy's ended the quarter with 6,623 restaurants, a net increase of one unit from the end of the first quarter of 2008. Company-operated restaurants totaled 1,399 and included the opening of five new company-operated restaurants in the first quarter of 2009. A total of 10 company-operated openings are anticipated for 2009.
Arby's ended the first quarter of 2009 with 3,741 restaurants, a net increase of 47 units from the end of the first quarter of 2008. Company-operated restaurants totaled 1,171, including the opening of one new company-operated restaurant in the first quarter of 2009. A total of five new company-operated restaurants are anticipated to open in 2009.
Progress for the brands
"We are pleased with the progress we made at both brands during the quarter, including positive same-store sales and margin improvement at Wendy's as well as improved same-store sales results in March at Arby's," said Roland Smith, president and CEO of Wendy's/Arby's Group.
For the quarter, Wendy's promoted its Value Trio of 99-cent sandwiches and Premium Fish.
"We achieved positive sales despite heavy discounting and couponing at most quick-service restaurant brands," Smith said. "We continued to make excellent progress on margins as we effectively managed labor and controllable costs. We will begin introducing new products over the next several months, including new premium hamburger, chicken and Frosty offerings, with advertising designed to enhance Wendy's quality brand positioning."
For Arby's, national advertising and a comprehensive public relations launch centered around the new Roastburger generated positive attention.
"While recent sales trends at Arby's have softened from the initial Roastburger launch in March, we have retained much of the sales improvement from the Roastburger introduction and have begun to promote Roastburgers again in May," Smith said.
Management hosted a conference call to discuss its financial results May 7 at 11:00 a.m. Eastern time. The call also will be webcast live from the investor relations page of the company's Web site, atwww.wendysarbys.com.
The conference call can be accessed live over the phone by dialing (888) 549-7750 or for international callers by dialing (480) 629-9866. A replay will be available one hour after the call and can be accessed by dialing (800) 406-7325 or for international callers by dialing (303) 590-3030; the passcode for the replay is 4065554#. The replay will be available until May 21, 2009. The webcast will also be archived on the company's Web site.
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