Arby's Franchisor Posts Loss

NEW YORK CITY-Hurt by higher costs and expenses, Arby’s US and Canadian franchisor Triarc Companies Inc. posted widening losses in the fourth quarter as costs associated with the company’s July 2005 acquisition of RTM Restaurant Group ate into the bottom line.

Triarc, which holds approximately 3,500 Arby’s restaurants, posted a net loss of $16.25 million or 21 cents per share for the quarter ending Jan. 1, 2006 compared to a net loss of $3.6 million or 6 cents per share in the same quarter of 2004. The wider quarterly losses were attributed to $329.64 million in relocation, restructuring and other charges associated with the RTM acquisition along other operating costs. In the prior year, quarterly losses were $102.03 million for the New York City-based firm.

Despite those losses, the acquisition of 775 restaurants from RTM boosted sales and revenue for the quarter, with revenue jumping to $305.56 million from $95.96 million the previous year and net sales increasing to $258.53 million from $53.88 million.