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Arby’s 3Q same-store sales rise 9.6%

Arby’s 3Q same-store sales rise 9.6%

Company says it has outpaced quick-service sector for 11 straight quarters

Arby’s Restaurant Group said on Wednesday that its same-store sales rose 9.6 percent in the third quarter ended Sept. 30, as the chain’s product pipeline and edgy marketing kept the company’s momentum going for a 20th consecutive quarter.

Arby’s sales outperformed the quick-service restaurant category by 7.4 percentage points, according to category data from the research firm NPD Group. That was the 11th straight quarter the 3,300-unit Atlanta-based concept outperformed its peers.

It was also the 20th straight quarter of same-store sales growth for the chain, which is owned by Roark Capital.

“Arby’s momentum in 2015 is driven by our proven formula of product innovation, breakthrough marketing and ‘make it right’ service culture,” Paul Brown, CEO of Arby’s, said in a statement. “I’m particularly pleased that the majority of our sales growth this quarter was driven by an increase in transactions, a key indicator of a vibrant and growing brand.

“We continue to see our long-time Arby’s fans visit our restaurants more often, in addition to new guests experiencing our deli-inspired delicious sandwiches for the first time.”

Arby’s has generated strong sales in recent years on the back of a product pipeline that has produced a string of winning sandwiches, including the brisket sandwich and, more recently, its sliders. The chain recently said it sold 29 million sliders in September, or about 1 million per day — including nearly 1,500 one day at a single location in Alabama.

The company also cited its “brand visibility,” which included a “Vegetarian Support hotline” to “protect vegetarians from the urges of the brand’s new Brown Sugar Bacon.” The chain also took advantage of constant ribbing from former Daily Show Host Jon Stewart during his recent retirement.

In addition, Arby’s said the company’s training program has improved service. And the chain has kicked off its remodeling program, and is on track to remodel 160 locations and build 60 new restaurants this year.

The chain’s goal is to generate $4 billion in systemwide sales by the end of 2018. For the first nine months of the year, the chain’s same-store sales have risen 8.9 percent.

Contact Jonathan Maze at [email protected]
Follow him on Twitter: @jonathanmaze

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