Holding firm Triarc Companies, the franchisor of Arby’s restaurants through its subsidiaries, has announced the results of operations for its Q1 2002.
Domestic comparative store results of Arby’s increased 4% in the Q1 2002 compared to the Q1 2001. Arby’s generated Q1 2002 EBITDA of US$13.8m, a 9% increase compared to Q1 2001.
Arby’s Q1 2002 results were favorably impacted by higher sales of core products as well as the continuing positive impact of Arby’s Market Fresh premium sandwiches. The Q1 2002 introduction of a new Market Fresh sandwich (Turkey Bacon Ranch Cheddar) and the resumption of Arby’s national advertising in February were particularly important factors.
Eighteen new Arby’s units were opened and 23 low volume units were closed in the Q1 2002. As of 31 March 2002, Arby’s has commitments from franchisees to build about 600 new units.
Triarc reported a net loss for the Q1 2002 of US$(1)m, compared to net income of US$8.2m in the Q1 2001. This decrease principally reflects lower investment income in the Q1 2002 and the effect of a nonrecurring credit to corporate expenses.
Commenting on corporate developments, Nelson Peltz, Triarc’s chairman and CEO, said: “We continue to evaluate strategic opportunities, with the objective of increasing value at Triarc. With our significant cash and investments, potential to issue equity securities and borrowing capacity beyond that, we believe we are well positioned to make acquisitions.”
Peter May, Triarc’s president and COO, said: “Arby’s posted another strong quarter characterised by very healthy comparative store results, new store openings and the continued success of Market Fresh sandwiches in combination with our national advertising programme.”