Arby's Has the Meats, Equities Have the BEEFS: A Strategic Investment Perspective

In the fast-food industry, Arby's has carved out a unique niche with its iconic tagline, "We have the meats." This focus on diverse, high-quality proteins has driven the company's success, making it a compelling case study for investors seeking stable, predictable growth. Let's delve into Arby's strategic approach and explore how it translates to the broader equities market.

Arby's has demonstrated an uncanny ability to adapt its menu to consumer trends, capitalizing on the growing demand for adventurous and affordable protein options. By introducing limited-time offers (LTOs) like the pork belly sandwich and venison sandwich, the company has attracted both loyal customers and new diners, driving consecutive quarterly sales growth. This strategy has positioned Arby's as a 'fast crafted' alternative between traditional quick-service restaurants (QSR) and fast-casual concepts, appealing to both 'fast foodies' and 'eating machines.'

The success of Arby's LTOs is evident in the company's financial performance. Between 2013 and 2016, Arby's introduced almost a dozen LTOs annually, up from just two previously. This strategy helped drive same-store sales growth of 3.8% in 2016, with system-wide sales reaching $3.6 billion. By focusing on affordable, innovative proteins, Arby's has outpaced the industry and achieved remarkable growth.



As an investor, Arby's approach to menu innovation and adaptation to consumer trends offers valuable insights into the broader equities market. Companies that prioritize stability, predictability, and consistent growth, like Arby's, deserve higher valuations. These 'boring but lucrative' investments, as the author puts it, provide a solid foundation for a balanced portfolio, combining growth and value stocks.

Moreover, Arby's international expansion has contributed significantly to its overall financial success. The company's strategic focus on international markets has helped it reach a broader customer base, driving system-wide sales to $3.6 billion in 2016. This growth aligns with the author's preference for stable, predictable investments, as seen with Morgan Stanley.

In conclusion, Arby's success story serves as a testament to the value of stable, predictable growth in the equities market. By adapting to consumer trends, innovating through LTOs, and expanding internationally, Arby's has solidified its position in the fast-food industry. Investors seeking 'boring but lucrative' opportunities would do well to consider companies that prioritize these strategic approaches, as they offer a solid foundation for a balanced and enduring portfolio.