CHICAGO (Reuters) - Wendy's/Arby's Group Inc is cutting the number of Wendy's restaurants selling breakfast items and hopes to relaunch its morning menu across the United States in 2011, the company's chief executive said on Tuesday.
Wendy's/Arby's shares rose more than 3 percent in early trading.
The company is also working on improving margins at its Wendy's restaurants, said Roland Smith, president and CEO of Wendy's/Arby's, who also serves as CEO of the Wendy's brand.
Wendy's/Arby's was formed when Triarc, the owner of the Arby's sandwich chain, acquired Wendy's International Inc for $2.2 billion on September 29.
Smith, speaking at a Cowen and Company conference, said the company expects to grow EBITDA by $100 million and cut costs by $60 million over three years.
Smith said Wendy's would focus on the Pittsburgh, Kansas City and Phoenix markets this year with a revamped breakfast menu. After testing its plans, it aims to relaunch breakfast nationally in 2011.
In a slide for Smith's presentation, Wendy's/Arby's said it would reduce the number of Wendy's locations selling breakfast to between 450 and 475, down from 850.
The move is a sharp contrast to the pre-merger plan Wendy's laid out in 2007. At that time, Wendy's added breakfast to hundreds of U.S. locations as a key initiative to revitalize its business.
McDonald's Corp
In the past, Wendy's breakfast offerings have included a Steak and Egg sandwich, a Grande Breakfast Burrito, and a Buttermilk Frescuit -- a type of biscuit made with egg, cheese and bacon.
Fourth-quarter results for the combined company will be released on March 5. In November, Wendy's/Arby's posted quarterly losses for each of its former companies.
Wendy's/Arby's shares gained 19 cents, or 3.7 percent, to $5.29 in early New York Stock Exchange trading.
(Reporting by Jessica Wohl; Editing by Derek Caney and Maureen Bavdek)