Wendy's same-store sales rose 1 percent in the first three months of the year, but Arby's continued to struggle, with same-store sales falling almost 9 percent, Atlanta-based Wendy's/Arby's Group reported Thursday.
The two restaurant chains merged in September, creating the third-largest fast-food company in the United States.
In the first quarter, Wendy's/Arby's had a net loss of $10.9 million on revenue of $864 million. The company said the losses included about $15 million in charges for special items, such as integration and relocation expenses, asset write-offs and investment losses.
Wendy's fared well in a difficult market thanks largely to a 99-cent value trio that includes a double-stack burger, junior bacon cheeseburger and chicken sandwich.
Arby's suffered as competing sandwich chains, led by Subway and its $5 foot-long subs, offered low-priced items.
Arby's saw positive results from the introduction of a line of Roastburger sandwiches, said Roland Smith, Wendy's/Arby's president and CEO. Roastburgers, which start at about $3.59, combine Arby's roast beef with burger toppings such as bacon, lettuce and tomatoes.
The Roastburger helped boost March sales over January and February sales, Smith said in a conference call with analysts. "Roastburger is the first step in our new brand strategy at Arby's focused on premium Arby's customers," he said.
Arby's plans to extend the Roastburger line to other roasted meats, such as chicken, turkey and ham, Smith said. Arby's also has been testing value items that it plans to add later this year, he said.
Wendy's is introducing this month two new Frosty's, a coffee toffee Frosty and a coffee-flavored Frosty shake, Smith said. Later this summer, it plans to add new premium chicken offerings, he said.
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