Arby’s Restaurant Group Inc. said Wednesday that same-store sales increased 6.6 percent in the first quarter, and that the momentum is leading franchisees to build new locations.
The Atlanta-based sandwich chain reported its 22nd straight quarter of same-store sales growth, and the 13th straight quarter that same-store sales growth outpaced the quick-service segment.
Arby’s said that traffic was the major driver behind the performance.
“I continue to be pleased with how our corporate and franchise teams are working together to grow sales and increase restaurant level profitability,” Arby’s CEO Paul Brown said in a statement. He said the effort is “putting us in a strong position to deliver on our strategic priority of accelerating remodels and new restaurant development.”
Arby’s same-store sales rose 5.8 percent when factoring out the extra day in February, the company said. On a two-year basis, the chain’s same-store sales have risen 15.3 percent.
That has operators thinking of expanding again. Arby’s remodeled 179 locations in 2015, and it expects to exceed that pace this year. The company also recently signed a string of deals with new and existing franchisees to build 138 units.
The moves are key for a chain that had been slowly shrinking its unit count in the post-recession era. Arby’s has 3,300 locations worldwide.
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