Arby’s Restaurant Group Inc.’s same-store sales rose 8.1 percent in 2015, the best performance for the Atlanta-based chain in more than 20 years, the company said on Monday.
Longer-term same-store sales growth also reached records, the company said, as systemwide sales reached $3.5 billion.
“2015 was a record-setting year for Arby’s,” CEO Paul Brown said in a statement. “We are particularly pleased with our significant increase in guest traffic throughout the year.”
The chain’s same-store sales have grown for 21 straight quarters, and increased 13.8 percent on a two-year basis and 16.6 percent over three years, both figures were the highest in two decades.
Arby’s sales momentum was enough to get the chain back to adding more locations.
The company and its franchisees opened 69 new locations systemwide last year, 60 of them in the U.S. — the first time since 2008 that the chain added locations.
Arby’s said that its new “Menu of Venues” approach to sign that provides different architectural options to fit into different trade areas and retail spaces helped fuel the unit growth.
The flexible building options include stand-alone restaurants, as well as locations that can fit into suburban shopping centers, both in-line locations and end-caps with drive-thrus. And the chain has a smaller footprint design for urban areas such as Arby’s new Manhattan location that opened in December.
Unit growth is key for a chain whose goal is to get its systemwide sales to $4 billion in 2018.
It also signals the chain’s remarkable recovery in recent years, a recovery that began shortly before Roark Capital bought the chain from The Wendy’s Co. in 2011.
Arby’s has used a string of limited-time offers and innovative marketing to get customers to return to the sandwich chain. That includes its new sliders sandwiches, of which it sold 29 million in September.
The chain also took advantage of the constant ribbing from former Daily Show host Jon Stewart during his recent retirement, including commercials for Stewart’s final episode in August.
Arby’s started a remodeling program last year to spruce up existing locations, remodeling 179 locations of the 3,300-unit chain last year. The company also cites its efforts to improve service through its “Brand Champ” training program.
The improvement has franchisees on board. Existing Arby’s franchisee U.S. Beef Corp. in January agreed to add 70 locations over the next seven years.
“Arby’s has tapped into something special — the right combination of great food, excellent service and breakthrough marketing — backed by a talented and motivated team and franchise community,” Brown said. “We have unlocked a powerful recipe for success, which is resonating with our guests, and our strategy will continue unchanged in 2016 as we look for opportunities to outpace our competition.”
Correction: Feb. 1, 2016 An Arby's spokesman said the chain is not reporting the highest same-store sales in the quick-service sector as described in an earlier version of this story. Instead, the spokesman said that the chain outpaced a representative sample of quick-service restaurants in 2015, citing data from the NPD Group.
Contact Jonathan Maze at [email protected].
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