UPDATE 1-Wendy's/Arby's taps Russia, eyes China and Brazil

Thu Jun 23, 2011 10:18am EDT

* Russian partner Wenrus to open 192 restaurants in 9 yrs

* Wendy's/Arby's plans to enter Brazil, China next

* Wants to have 8,000 restaurants outside North America

* Sees Russian sales per outlet up to 40 pct above U.S.

(Adds quotes, details)

By Maria Kiselyova

MOSCOW, June 23 (Reuters) - Wendy's/Arby's said on Thursday it planned almost as many restaurants overseas as in its home market and was eyeing China and Brazil for expansion after Russia.

Unlike rivals McDonald's and KFC parent Yum Brands , the U.S. fast food chain operates only about 300 of its 10,000 restaurants outside North America.

Senior Vice President Andy Skehan said the group was aiming for more than 8,000 extra outlets in its emerging markets drive.

"I consider Russia probably the best and most important market for us to enter. It's a vibrant country with a growing economy and...people who like to eat meat," Skehan told reporters at the opening of a Wendy's restaurant on Arbat, Moscow's most famous street.

"We are growing very aggressively... Probably the two next markets we are looking to enter are Brazil and China. We consider them along with Russia to be the highest-potential and most important markets in the world," Skehan said.

India is more challenging, Skehan told Reuters in an interview, but he expected the company to "be there certainly within the next few years" after it taps China and Brazil.

The company announced last August it would open at least 180 restaurants in Russia over the next 10 years with franchisee Wenrus Restaurant Group Ltd.

Wenrus' Chief Executive Alexander Kovaler said on Thursday it would exceed the target and open 192 restaurants over the next nine years. He also announced plans to open 50-60 outlets in Kazakhstan and Ukraine over the next 10 years.

Wendy's/Arby's follows U.S. rival Burger King, which opened it first Russian restaurant in January 2010.

The world's biggest hamburger chain McDonald's celebrated 20 years in the country a month later.

Skehan said he expected sales at each Russian restaurant to hit $1.5 million to $1.6 million on average within five years, compared with an average $1.2 million in the United States.

Wendy's/Arby's announced in March it would re-enter Japan later this year, two years after closing 71 Wendy's outlets and exiting the country. ($1=28.04 Rouble) (Editing by David Cowell)

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