The company is comprised of about 3,600 restaurants. In the second quarter, the company opened 28 new units and closed 13. System-wide, same-store sales were essentially unchanged in first half of 2007, versus a 2% increase in the 2006 Q2, said the company. Same-store sales for company-owned stores dropped 2% in the first half of the year, due to deterioration of economic conditions in the Michigan and Ohio regions, and poor weather conditions in the northern and central regions of the US in Q1 2007, company officials said.
Also, facilities relocation and corporate restructuring charges were $79 million in the company's Q2, related to a settlement with the former chairman and CEO, Nelson Peltz, who resigned as of June 29, as well as similar settlements with the former vice chairman, president and CO, and payments due to another former senior executive. Peltz, a billionaire investor, is now a non-executive vice chairman at Triarc. In past months, he has been talking about acquiring the Wendy's chain.
Triarc also expects to complete the sale of its controlling interest in its asset management business, Deerfield, in the third quarter. As part of this sale, Triarc officials said in the statement that the company will change its name, and begin operating from its Arby's Restaurant Group office in Atlanta.
"With the sale of Deerfield nearly complete, Triarc will become a "pure play" restaurant company," Peltz said in the statement. "Today, Arby's is well-positioned for continued growth – both organically and through acquisitions."
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.