Wendy's/Arby's benefit from value product offerings
March 4, 2010
by Eric Schroeder
ATLANTA — Wendy’s/Arby’s Group Inc. , which was created in September 2008 in a merger between Wendy’s International, Inc., and Triarc Companies, Inc., posted net income of $5,062,000, equal to 1c per share on the common stock, in the year ended Jan. 3. Net sales for the year totaled $3,198,348,000. Year-over-year results were not comparable because of the timing of the merger.
For the fourth quarter ended Jan. 3, the company sustained a loss of $13,594,000, which compared with a loss of $393,218,000 in the same period a year ago. Net sales rose narrowly to $802,872,000 from $801,731,000.
“We are making great strides re-energizing our Wendy’s brand and we believe our fourth-quarter same-store sales were among the strongest in the industry,” said Roland Smith, president and chief executive officer. “At Arby’s, we are implementing a turnaround plan to improve customer traffic and sales. Both of our brands focused on value menus in January 2010 and same-store sales improved as compared to the fourth quarter of 2009. Also, we have completed $120 million of our $200 million stock repurchase program, and we are confident in the long-term growth prospects of our company.”
Mr. Smith said Wendy’s benefited from a focus on effective value offerings, including the $2.99 Deluxe combo meals and 99c Spicy Chicken nuggets, while Arby’s received a boost from the expansion of its $1 value menu.