Wendy's, Arby's swing to loss in 3Q
Triarc Cos. Inc., which operates Arby's, bought the nation's No. 3 hamburger chain in a deal that closed in September. Because the acquisition wasn't complete until the end of the quarter, Triarc did not combine the results of the two companies in its quarterly report.
Wendy's reportedly posted a loss of $29.85 million compared with a year-ago profit of $29.9 million. The results included charges of $68.5 million associated with the deal. Wendy's did not give a figure that excluded only those charges related to the takeover.
Revenue at Wendy's fell slightly to $624.9 million from $629.8 million, as a tough economy crimped consumer spending, according to reports. Same-store sales dropped 0.2 percent at company-owned stores.
Triarc recorded a loss of $12.1 million compared with a profit of $3.7 million a year earlier.
Revenue fell 4 percent to $310.4 million from $324.2 million, the company said. Same-store sales at Arby's company-owned stores dropped 7.2 percent while franchise same-store sales fell 4 percent.
Source: Associated Press