Wendy's/Arby's Group Inc.'s second-quarter earnings fell 28% with same-store sales at both Wendy's and Arby's declining.
The company plans to combat the decline by focusing on lower prices. Wendy's will market Frosty desserts and spicy chicken nuggets for 99 cents each, in part to coincide with the back-to-school period where consumers are more frugal.
Arby's, meanwhile, is on a more ambitious quest to make customers perceive it as a better value. In addition to advertising $1 products, Arby's stores in some markets are trying out lower prices on core-menu mainstays, like its full-sized roast beef sandwiches. Other Arby's break out 30 menu items priced for under $3 in their restaurants, Chief Executive Roland Smith said on Thursday's earnings call.
Brinker International Inc.'s flagship Chili's Grill & Bar restaurant chain said Thursday it will bring back a familiar deal to try to attract more customers. Chili's, which has been trying to move away from discounts, will soon start offering a selection of two entrees and an appetizer to share for $20, as it looks to jump-start customer visits after reporting a fiscal fourth-quarter same-store sales decline of 4.1%. The casual-dining company said earnings for the period rose 51%, aided by a gain from the sale of its On the Border chain and other items, masking ongoing sales weakness.
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