UPDATE 3-Wendy's/Arby's profit beats as Arby's improves

* Adj prelim Q4 EPS $0.01 tops Street view for nil/shr

* Arby's North American same-restaurant sales up 2 pct

* Sees 2011 EBITDA of $345 mln-$355 mln (Adds CEO comment, long-term outlook, byline)

By Martinne Geller

NEW YORK, Jan 26 (Reuters) - Wendy's/Arby's Group Inc WEN.N reported a surprise quarterly profit on Wednesday, citing progress in the turnaround of its struggling Arby's chain and the success of new products like french fries with sea salt.

The No. 3 U.S. fast-food chain on Jan. 20 announced plans to sell the Arby's restaurants, whose sales at established North American outlets rose 2 percent in the fourth quarter. [ID:nNSGE70J0A]

At the Wendy's chain, North American same-restaurant sales rose 0.2 percent, with a decrease of 0.9 percent at company-run stores and a 0.6 percent increase at franchised stores.

The company reported a preliminary net loss of $10.8 million, or 3 cents per share, for the fourth quarter. In the year-earlier period, its loss was $14.7 million, or 3 cents per share.

Excluding special charges of $16.5 million, the company earned 1 cent per share. Analysts on average were expecting the company to break even, according to Thomson Reuters I/B/E/S.

The results came a day ahead of a scheduled meeting with investors, where Wendy's executives will discuss their strategy to boost sales at the Wendy's chain. Their plans include new products, generating more traffic at less busy hours of the day, modernizing facilities and opening more restaurants in underpenetrated North American markets and abroad.

"2011 will be a transition year as we explore strategic alternatives for Arby's," said Chief Executive Roland Smith. Beginning in 2012, he said, the Wendy's chain should be able to drive annual increases of 10 percent to 15 percent in earnings before interest, taxes, depreciation and amortization (EBITDA).

Revenue in the quarter was $840.7 million, down from $900.9 million a year earlier, but ahead of analysts' average estimate of $833.6 million.

The company forecast 2011 EBITDA of $345 million to $355 million, assuming a sale of Arby's and a related reduction in general and administrative expenses.

The outlook reflects expectations of same-restaurant sales growth of 1 percent to 3 percent at Wendy's North American company-operated restaurants and an improvement in its restaurant margin of 30 to 60 basis points.

The company said it also expects to develop about 20 company-owned restaurants, 45 franchised restaurants and about 50 international franchised restaurants. (Reporting by Martinne Geller; Editing by Andre Grenon and Steve Orlofsky)