Fast-food chains expand value menus and promotions to lure customers
03/05/2010 08:50
Wendy's/Arby's Group /quotes/comstock/13*!wen/quotes/nls/wen (WEN 4.50, -0.09, -1.92%) posted a net loss of $13.6 million, or 3 cents a share, for the three months ended Jan. 3. In the year-earlier period, the loss was $393.2 million, or 84 cents a share. Sales rose to $901 million from $897 million.
Wendy's/Arby's, formed from a 2008 merger, is remodeling its restaurants to help improve customer traffic as well as spending money to improve the Wendy's breakfast lineup and expand the Arby's value menu.
The third-largest U.S. fast-food chain also plans to change its pricing strategy to match similar moves by rivals. Wendy's/Arby's said it will set prices on a local, or store-by-store basis, rather than a regional one, in a bid to stoke sales and widen margins.