Wendy's outperforms corporate sibling Arby's
Joe Guy Collier; For the AJC -- The Atlanta Journal-Constitution, November 6, 2009 Friday First Replate Edition
Wendy's is holding its own in a challenging market, but Arby's continues to face difficulties, according to financial results released Thursday by Atlanta-based Wendy's/Arby's Group.
Wendy's North America same-store sales were flat in the third quarter, while Arby's same-store sales fell 9 percent. Same-store sales measure results at stores open for at least a year.
The company posted net profit of $14.7 million on $903 million of revenue for the quarter, which ended Sept. 27. The results aren't comparable to reported figures for last year because Wendy's and Arby's did not merge until Sept. 29, 2008.
Wendy's/Arby's Group said it is ahead of schedule for cost savings from combining the two companies. The company also said it is making significant progress to meet targets for improving operating margins at Wendy's company-owned stores.
Wendy's performed well in a difficult environment, Wendy's/Arby's Group CEO Roland Smith told analysts. The chain recently launched a new advertising campaign, tagged "You know when it's real," and added a bacon deluxe cheeseburger to the menu.
"In October, we chose to relaunch our brand and focus on a new premium product which we believe will have long-term benefits," Smith said.
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