Growth in guest traffic continues to be a major driver of sales
ATLANTA–(BUSINESS WIRE)–Arby’s, the Fast Crafted™ restaurant brand with more than 3,300
restaurants worldwide, announced U.S. System Same-Store Sales (SSS)
growth of 5.8 percent1 in the first quarter of
2016. Including Leap Day, Arby’s U.S. System SSS growth was 6.6 percent
during the first quarter of 2016. Arby’s SSS growth more than doubled a
representative sample of the larger Quick Serve Restaurant (QSR) chains2,
representing 22 consecutive quarters of SSS growth and 13
consecutive quarters of industry outperformance.
Arby’s reported U.S. System two-year SSS of 15.3 percent (16.1
percent when accounting for Leap Day impact) in Q1 2016 and
attributed the sales success to a winning combination of innovative
products, a marketing approach that continues to resonate and a
relentless focus on guest experience resulting in the Brand attracting
new guests while giving existing guests reason to frequent restaurants
“Our consistent industry outperformance and business momentum continues
to reinforce that our differentiated Fast Crafted restaurant experience
is resonating with our target guests,” said Paul Brown, Chief Executive
Officer of Arby’s Restaurant Group, Inc. “I continue to be pleased with
how our corporate and franchise teams are working together to grow sales
and increase restaurant level profitability — putting us in a strong
position to deliver on our strategic priority of accelerating remodels
and new restaurant development.”
Arby’s strong Q1 sales results follow last month’s announcement of
several new development agreements with new and existing franchisees,
representing 138 new restaurants. Arby’s remodeled 179 U.S. company and
franchise restaurants during 2015 and expects to exceed that pace this
Other financial and business highlights from the quarter include:
15% Energy Reduction: Arby’s announced on March 31 that it has
achieved its “15 percent by 2015” energy reduction goal, decreasing
its energy usage in company-owned restaurants by 15.2 percent from
2011-2015. Arby’s also achieved an 8.6 percent reduction in water
consumption in company-owned restaurants during the same period. These
efficiencies resulted in $20.4 million of energy-related cost savings
over this period.
Award-winning Sliders: Debuting with more than 29 million
sliders sold in their first month of September 2015, Arby’s Sliders
continue to be a hot menu item, with cumulative product sales
approaching the 100 million mark at the end of Q1. Sliders have been
named ”Best Line Extension” from the prestigious 2016 MenuMasters
Awards and will be recognized at the 2016 NRA Show in May.
Healthy Franchise System: Following-through on Arby’s
commitment to build strong and mutually beneficial relationships with
its franchise system, Arby’s was named a World-Class Franchise® by the
Franchise Research Institute®. In fact, 94 percent of Arby’s
franchisees gave a positive rating to the long-term growth potential
of their franchise business.
1Source: Internal ARG data; Includes estimates for
unreported franchisees at time of release.
2Source: The NPD Group/SalesTrack® Weekly reports same
store sales collected weekly from 45 of the larger Quick Service
Restaurant chains during Q1 2016 ending April 3, 2016.
Arby’s, founded in 1964, is the first nationally franchised sandwich
restaurant brand, with more than 3,300 restaurants worldwide. The Arby’s
brand purpose is “Inspiring Smiles Through Delicious Experiences™.”
Arby’s® restaurants feature Fast Crafted™ service, a unique
blend of quick-serve speed and value combined with the quality and
made-for-you care of fast casual. Arby’s Restaurant Group, Inc. is the
parent company of the franchisor of the Arby’s brand and is
headquartered in Atlanta, Ga. Visit Arbys.com
for more information.
With the current growth and momentum of the Brand, Arby’s is actively
seeking new franchisees. To learn more about available markets and
requirements, visit DiscoverArbys.com.
Christopher Fuller, 678-514-4211