Wendy's 2009 Annual Report Download - page 16

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The following table sets forth the number of Arby’s restaurants at the beginning and end of each year
from 2007 to 2009:
2009 2008 2007
Restaurants open at beginning of period. . . . . . . . . . . . . . . . . . . . . . 3,756 3,688 3,585
Restaurants opened during period. . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 127 148
Restaurants closed during period. . . . . . . . . . . . . . . . . . . . . . . . . . . . . (97) (59) (45)
Restaurants open at end of period . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,718 3,756 3,688
During the period from January 1, 2007, through January 3, 2010, 334 Arby’s restaurants were opened
and 201 generally underperforming Arby’s restaurants were closed.
Operations
In addition to various slow-roasted roast beef sandwiches, Arby’s offers an extensive menu of chicken,
turkey and ham sandwiches, snack items and salads. In 2001, Arby’s introduced its Market Freshline of
premium sandwiches on a nationwide basis. Since its introduction, the Arby’s Market Fresh line has grown to
include fresh salads made with premium ingredients. In 2007, Arby’s added Toasted Subs to its sandwich
selections, which was Arby’s largest menu expansion since the 2001 introduction of its Market Fresh line. In
2009, Arby’s launched its new line of Roastburgersandwiches which are Arby’s roast beef sandwiches
dressed with traditional hamburger toppings.
Free-standing Arby’s restaurants generally include a pick-up window in addition to a dining room. The
percentage of sales at company-owned Arby’s restaurants through the pick-up window was 57.2% and 57.7%
in 2009 and 2008, respectively.
Generally, ARG does not sell food or supplies to Arby’s franchisees.
See Note 25 of the Financial Statements and Supplementary Data included in Item 8 herein, for financial
information attributable to certain geographical areas.
Raw Materials and Purchasing
As of January 3, 2010, 3 independent meat processors (5 total production facilities) supplied all of Arby’s
beef for roasting in the United States. Franchise operators are required to obtain beef for roasting from these
approved suppliers.
Arby’s and its franchisees have not experienced any material shortages of food, equipment, fixtures or
other products that are necessary to maintain restaurant operations. Arby’s anticipates no such shortages of
products and believes that alternate suppliers are available.
ARCOP, Inc., a not-for-profit purchasing cooperative, negotiates contracts with approved suppliers on
behalf of ARG and Arby’s franchisees. Suppliers to the Arby’s system must comply with USDA and FDA
regulations governing the manufacture, packaging, storage, distribution and sale of all food and packaging
products. Franchisees may obtain other products, including food, ingredients, paper goods, equipment and
signs, from any source that meets ARG’s specifications and approval. Through ARCOP, ARG and Arby’s
franchisees purchase food, beverage, proprietary paper and operating supplies under national contracts with
pricing based upon total system volume.
Trademarks and Service Marks
ARG, through its subsidiaries, owns several trademarks that it considers to be material to its restaurant
business, including Arby’s, Arby’s Market Fresh, Market Fresh, Horsey Sauce, Sidekickersand
Roastburger. ARG believes that these and other related marks are of material importance to its business.
Domestic trademarks and service marks expire at various times from 2010 to 2020, while international
trademarks and service marks have various durations of 10 to 15 years. ARG generally intends to renew
trademarks and service marks that are scheduled to expire.
Seasonality
Arby’s restaurant operations are not significantly impacted by seasonality. However, Arby’s restaurant
revenues are somewhat lower in the first quarter.
9