Foodservice Equipment Reports

Arby’s Up For Sale, Wendy’s Signs Big Deal For Argentina

Wendy's/Arby's Group is planning to focus on its burger business. The nation’s third-largest quick-service restaurant company said last week it was exploring strategic alternatives for the 3,700-unit Arby’s chain. A sale was not ruled out. The company added a few details at its Jan. 27 investors’ conference, stating that selling the Arby’s chain would help provide capital for reinvestments at Wendy’s, including new breakfast and burger lines, restaurant remodels, a new store prototype, and international growth.

On that point, the company hopes to expand Wendy’s abroad from its current base of 340 restaurants to as many as 8,000 over several years. Since June 2009, Wendy's/Arby's Group subsidiaries have signed long-term development agreements with franchisees for the Middle East and North Africa, Singapore, Turkey, Russia and the eastern Caribbean. It is pursuing potential opportunities in Japan, China, Brazil and other key international markets.

Wendy’s kicked off its global push by inking an agreement with Desarrollos Gastronomicos S.A. to develop 50 Wendy's units in Argentina during the next decade; the first location will open this year in Buenos Aires. DEGASA’s investors also control D&G, the operator of Havanna Café, a quick-service coffee chain with more than 180 outlets in Argentina and 68 outlets in Europe and Latin America.

Overall in ’11, Wendy’s expects to open approximately 50 new international franchise stores. On the domestic front, it anticipates 20 new company stores and 45 franchise stores.

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