Wendy’s/Arby’s Group, Inc. (WEN), the third largest quick-service restaurant company in the United States, has set its eyes on the Russian market for growth. The Russian market is one of the fastest growing markets; thereby enabling Wendy’s/Arby’s to benefit considerably from its long-term growth opportunities.
Just before its second-quarter earnings, Wendy’s/Arby’s announced that through its subsidiary Wendy’s/Arby’s International it has signed an agreement with local franchisee Wenrus Restaurant Group Limited, to open 180 dual-branded Wendy’s and Arby’s restaurants in Russia over the next 10 years. Wenrus is an affiliate of Food Service Capital, one of the largest players in the Russian hospitality industry. Food Service Capital runs 28 restaurants in Russia, the Ukraine and Britain, including Goodman Steak Houses.
Wendy’s/Arby’s has limited presence in the international markets, which offers ample opportunities to enhance its reach. The company opened its first international dual-branded Wendy’s and Arby’s restaurant in Dubai, UAE in May 2010. This marked a milestone achieved by the company to broaden its global footprint. Wendy’s/Arby’s also plans to open 100 Arby’s restaurants over the next ten years in Turkey, 80 dual-branded restaurants in the Middle East/North Africa and 35 Wendy’s in Singapore.
We see strategic growth opportunities at both Wendy’s and Arby’s brands, including international development under dual-brand restaurants. The dual-brand units, combining Wendy’s and Arby’s under one roof, can generate higher sales volumes and better return on investment.
Wendy’s/Arby’s close competitor McDonald’s Corp. (MCD), the leading fast food chain operator, has 240 restaurants in Russia, and enjoys 70.0% market share of Russia’s quick-service restaurant. Moreover, McDonald’s plans to open additional 45 restaurants in Russia. Wendy’s/Arby’s other rival Burger King Holdings Inc. (BKC) opened its first Russian restaurant in January and henceforth planning to open at least 5 restaurants within two years in Moscow.
The company will also announce its second quarter 2010 results on August 12, 2010.
Wendy’s/Arby’s is one of the leading quick-service restaurant companies. Wendy’s/Arby’s was formed through the merger of Triarc, the franchisor of the Arby’s restaurant chain, and Wendy’s, the owner-operator-franchisor of the eponymous fast food chain. Wendy’s and Arby’s continue to operate independently, with Wendy’s headquartered in Dublin, Ohio and Arby’s in Atlanta, Georgia.
Just before its second-quarter earnings, Wendy’s/Arby’s announced that through its subsidiary Wendy’s/Arby’s International it has signed an agreement with local franchisee Wenrus Restaurant Group Limited, to open 180 dual-branded Wendy’s and Arby’s restaurants in Russia over the next 10 years. Wenrus is an affiliate of Food Service Capital, one of the largest players in the Russian hospitality industry. Food Service Capital runs 28 restaurants in Russia, the Ukraine and Britain, including Goodman Steak Houses.
Wendy’s/Arby’s has limited presence in the international markets, which offers ample opportunities to enhance its reach. The company opened its first international dual-branded Wendy’s and Arby’s restaurant in Dubai, UAE in May 2010. This marked a milestone achieved by the company to broaden its global footprint. Wendy’s/Arby’s also plans to open 100 Arby’s restaurants over the next ten years in Turkey, 80 dual-branded restaurants in the Middle East/North Africa and 35 Wendy’s in Singapore.
We see strategic growth opportunities at both Wendy’s and Arby’s brands, including international development under dual-brand restaurants. The dual-brand units, combining Wendy’s and Arby’s under one roof, can generate higher sales volumes and better return on investment.
Wendy’s/Arby’s close competitor McDonald’s Corp. (MCD), the leading fast food chain operator, has 240 restaurants in Russia, and enjoys 70.0% market share of Russia’s quick-service restaurant. Moreover, McDonald’s plans to open additional 45 restaurants in Russia. Wendy’s/Arby’s other rival Burger King Holdings Inc. (BKC) opened its first Russian restaurant in January and henceforth planning to open at least 5 restaurants within two years in Moscow.
The company will also announce its second quarter 2010 results on August 12, 2010.
Wendy’s/Arby’s is one of the leading quick-service restaurant companies. Wendy’s/Arby’s was formed through the merger of Triarc, the franchisor of the Arby’s restaurant chain, and Wendy’s, the owner-operator-franchisor of the eponymous fast food chain. Wendy’s and Arby’s continue to operate independently, with Wendy’s headquartered in Dublin, Ohio and Arby’s in Atlanta, Georgia.
BURGER KING HLD (BKC): Free Stock Analysis Report
MCDONALDS CORP (MCD): Free Stock Analysis Report
WENDYS/ARBYS GP (WEN): Free Stock Analysis Report
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