Wendy's/Arby's Group Signs Major Development Agreement for the Middle East and North Africa
Saudi Franchisee Plans to Open 135 Restaurants in Nine Countries over the Next 10 Years First Dual-Branded Wendy's and Arby's Restaurants for International Markets
Atlanta, (BUSINESS WIRE) -- Wendy's/Arby's Group, Inc. (NYSE: WEN) today announced an agreement with Saudi Arabia-based Al Jammaz Group to build 135 dual-branded Wendy's(R) and Arby's(R) restaurants in nine countries in the Middle East and North Africa over the next decade.
This milestone marks the first agreement with an international franchisee to build dual-branded restaurants since the formation of Wendy's/Arby's Group in September 2008. The development of dual-branded restaurants is an important component of Wendy's/Arby's Group's long-term international strategy and growth plan.
A subsidiary of Al Jammaz Group, Specialized Catering Services Est., with regional offices in Dubai, United Arab Emirates, is scheduled to open the first of these restaurants in Saudi Arabia by early 2010.
"We are pleased to enter into a franchise relationship with Al Jammaz, a company that has the proven leadership, resources and food-service experience to grow our two quality brands throughout the Middle East and North Africa," said Roland Smith, President and Chief Executive Officer, Wendy's/Arby's Group. "Dual branding will enable us to offer an exceptional range of high-quality menu choices from our two great brands under one roof.
"We believe dual-branded restaurants will generate higher sales volumes and better return on investment, making this approach particularly compelling to our international franchisees," added Smith.
"We are delighted to partner with the Wendy's/Arby's Group to develop its brands in two regions where we have many successful operations," said Ibrahim Al Jammaz, Vice President, Al Jammaz Group. "We believe we can use our expertise and local market knowledge to capitalize on the tremendous combined potential of the Wendy's and Arby's brands - both known for delicious food, served in a great atmosphere."
There are currently two Arby's restaurants in the region, located in Dubai and Qatar. These restaurants are not part of the announced agreement with Al Jammaz.
"Earlier this year, we brought in Darrell van Ligten, Senior Vice President, Strategic Development, to lead our dual branding efforts and international," said Smith. "Darrell is working closely with International Division Senior Vice President Jim Hartenstein and his team and they are focused on disciplined expansion into selective new international markets."
All Wendy's and Arby's restaurants located outside North America are franchised.
About Wendy's/Arby's Group, Inc.
Wendy's/Arby's Group, Inc is the third largest quick-service restaurant company in the U.S. and includes Wendy's International, Inc., the franchisor of the Wendy's restaurant system, and Arby's Restaurant Group, Inc., the franchisor of the Arby's restaurant system. The combined restaurant systems include more than 10,000 restaurants in the United States and 24 countries and territories worldwide.
About Al Jammaz Group
Al Jammaz Group, established in 1975 by Founder and President Abdulaziz Al Jammaz, is a well-diversified and fast-growing Saudi conglomerate whose activities cover a wide variety of business categories such as Agriculture, Foods, Retail, IT, Travel & Tourism, Investments and Logistics. The Company operates more than 200 stores of leading international franchises in the Middle East and North Africa. Al Jammaz Group pursues excellence throughout its business operations.
Note: Wendy's and Arby's franchisees are independent third parties that Wendy's/Arby's Group does not control. Numerous factors beyond the control of the Company and its franchisees may affect new restaurant openings. Accordingly, there can be no assurance that the commitments under this development agreement will result in new restaurant openings.
SOURCE: Wendy's/Arby's Group, Inc.