ATLANTA Triarc Cos. Inc., brand parent to the 3,600-unit Arby’s chain, said third-quarter operating profits at its restaurant division jumped 15 percent from a year ago on a nearly 5-percent increase in restaurant sales, improved margins and lower corporate expenses.
While Triarc did not provide guidance for the fourth quarter or the full fiscal year, it said it is “currently incurring significant costs” to evaluate the acquisition of another company in the restaurant industry. Triarc’s non-executive chairman, Nelson Peltz, who also holds a significant equity position in the company, has been courting an acquisition of Wendy’s International Inc., the parent to the No. 3 hamburger chain. Peltz, who also holds a 9.8-percent stake in Wendy’s, has said Triarc would be a “natural, strategic buyer” for the Wendy’s brand and that he could be willing to pay as much as $3.6 billion for the Dublin, Ohio-based Wendy’s.
Sources have indicated that the bidding for Wendy’s, which began exploring its corporate options in April, should come to a close this month.
For the quarter ended Sept. 30, Arby’s operating profit totaled $29.8 million versus $25.9 million a year ago. Restaurant revenues rose to $307.2 million, compared with $293.9 million a year ago. The increase reflected newly opened Arby’s restaurants that booked higher average unit volumes, the company said, as well as higher franchise royalties. Same-store sales at corporate restaurants fell 1 percent.
Triarc said it expects systemwide same-store sales to be positive for the current fourth quarter, driven by limited-time offers, the October introduction of toasted subs and certain price increases.
Atlanta-based Triarc also is a majority owner of Chicago-based asset manager Deerfield & Co. LLC. The company currently is seeking a sale of Deerfield, but the recent tightening of the credit markets has delayed a pending deal for the asset-management arm.
Including Deerfield’s results, Triarc’s consolidated net income increased to 3.7 million, or 4 cents per share, compared with $687,000, or 1 cent per share, a year ago. Consolidated revenues increased to $324.2 million in the latest third quarter, up from $311.7 million a year ago.