Earnings Preview: Wendy's/Arby's Group Inc.

ASHLEY M. HEHER

CHICAGO (AP) — Wendy's/Arby's Group Inc. reports results for the third quarter on Thursday morning. The following is a summary of key developments and analyst opinion related to the period.

OVERVIEW: Fast food restaurants benefited early in the recession as diners swapped expensive meals at high-priced eateries for more casual value menus. But that success is fading as customers stop eating out altogether or opt to spend even less when they do.

That could spell trouble for Wendy's/Arby's Group Inc., which traditionally has charged more than many of its competitors.

Burger King Corp. has already said this continuing belt-tightening cut into its revenue and profit, and McDonald's Corp. hinted that sales at some of its restaurants open more than a year, an important industry measure, could dip in October.

Like its rivals, Wendy's/Arby's has been promoting its cheaper menu options. In July and August, Arby's sold its "BBQ Bacon Cheddar Roastburger" along with an order of french fries and a small drink for $5.

During the quarter, Arby's Restaurant Group, a subsidiary of the Atlanta company, said it signed agreements to open 47 new Arby's outlets in North America.