Triarc Companies, Inc. (NYSE: TRY) today reported second quarter consolidated revenues of $74.8 million verses $24.8 million year over year primarily due to gaining $51.4 million in sales from the stores acquired in the purchase of franchisee Sybra, Inc. Revenues were negatively affected by a $1.8 million decrease in franchise royalties previously received from Sybra.
Consolidated net loss was -$1.4 million, or -$0.07 per share, compared to a net loss of -$7.5 million, or -$0.37 per share, in the second quarter of 2002.
Domestic same store sales at the Arby’s chain declined 3% compared to a 3.9% increase a year ago. The company blames discounting in the restaurant industry and the sluggish economy for the negative sales.
Discussing restaurant operations, Peter May, Triarc’s president and chief operating officer, said, “Over the last several quarters, Arby’s, like many of its restaurant peers, was impacted by several factors which adversely affected financial results.”
May said Arby’s will reintroduce the Ultimate BLT and Roast Turkey Ranch and Bacon Market Fresh sandwiches, implement a limited time offer of the Five-Star Club, and test a new Bistro gourmet sandwich line. “We believe that these and other initiatives can bridge the gap between fast food and fast casual offerings, thus broadening Arby’s consumer appeal,” May said.
Triarc also announced a two-for-one Class B common stock dividend, Class A and Class B quarterly cash dividends totaling $0.215 per share, and approval of a $50 million share repurchase program amended to include Class B stock.
In management news, Triarc announced the appointment of Edward P. Garden as executive vice president in charge of the corporate development team. Garden comes to Triarc from his position as a managing director of Credit Suisse First Boston.
Triarc shares were unchanged at $29.21 in after hours trading yesterday after the post-market close announcement.