Industry News | April 29, 2015

Arby's Sales Up 9.8%; Brand On Track for $4B Goal

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Arby’s, the first nationally franchised sandwich restaurant brand with more than 3,300 restaurants worldwide, reported its first quarter 2015 sales results. Arby’s achieved significant system same-store sales (SSS) growth of 9.8 percent in the first quarter ending April 5, 2015 versus the prior year, outperforming within a sample of major quick-service chains by an estimated 7.8 percentage points, according to the NPD Group and SalesTrack Weekly. The growth represents the brand’s 18th consecutive quarter of SSS growth. Arby’s same-store sales growth was driven primarily by growth in transactions combined with a shift in mix towards more premium products on the menu.

The company also continued to make progress in the design and development of its new building formats including opening restaurants in three unique formats featuring the brand’s flexible new Inspire design: Urban Inline (downtown Pittsburgh); Traditional Stand-alone (Lehi, Utah); and an End Cap with Drive-thru (White House, Tennessee).

The remodel and grand re-opening of a flagship location for Arby’s Restaurant Group Inc. in Atlanta that features the Inspire design and improved operations through a new Delight Line that integrates production and service counters, reducing square footage requirements; and increasing operating efficiencies while improving the guest experience.

“We are off to a great start in 2015, continuing our momentum from last year,” says Paul Brown, CEO of Arby’s Restaurant Group Inc. “We have a compelling vision for the Arby’s brand and a clear system-wide business strategy in place. These results validate our efforts to be the preferred destination for top-quality meats along with a Fast Crafted service experience that truly resonates with our guests.”

Arby’s also reiterated its goal to surpass $4 billion in system-wide total sales by the end of 2018. The goal represents a nearly 25 percent increase in system sales through a combination of average unit sales growth and new unit development. In 2014, system-wide sales totaled $3.26 billion.

Arby’s is accelerating new restaurant development in 2015 with its new Inspire restaurant designs representing the look and direction for the brand going forward. The variety of footprint options provides opportunities to open Arby’s restaurants in new community environments, such as shopping centers and high-density city areas.

In addition to new builds, Arby’s is remodeling existing restaurants across the system to the Inspire design and to date has remodeled nearly 40 restaurants and expects to remodel 180 total by the end of the year. On average, remodeled restaurants are experiencing sales increases of 15 percent or more, and in some cases more than 20 percent.

News and information presented in this release has not been corroborated by QSR, Food News Media, or Journalistic, Inc.

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