Exhibit 99.1
Exhibit 99.1
THE WENDY’S COMPANY
ICR XChange Investor Conference January 16, 2013
The Wendy’s Company
Forward-Looking Statements and Non-GAAP Financial Measures
This presentation, and certain information that management may discuss in connection with this presentation, contains certain statements that are not historical facts, including information concerning possible or assumed future results of our operations. Those statements constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (The “Reform Act”). For all forward-looking statements, we claim the protection of the safe harbor for forward-looking statements contained in the Reform Act.
Many important factors could affect our future results and could cause those results to differ materially from those expressed in or implied by our forward-looking statements. Such factors, all of which are difficult or impossible to predict accurately, and many of which are beyond our control, include but are not limited to those identified under the caption “Forward-Looking Statements” in our news release issued on January 16, 2013 and in the “Special Note Regarding Forward-Looking Statements and Projections” and “Risk Factors” sections of our most recent Form 10-K / Form 10-Qs.
In addition, this presentation and certain information management may discuss in connection with this presentation reference non-GAAP financial measures, such as adjusted earnings before interest, taxes, depreciation and amortization, or adjusted EBITDA, and adjusted earnings per share. Adjusted EBITDA and adjusted earnings per share exclude certain expenses, net of certain benefits. Reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures are provided in the Appendix to this presentation, and are included in our news release issued on January 16, 2013 and posted on www.aboutwendys.com.
The Wendy’s Company 2
CHIEF EXECUTIVE OFFICER
2012 Preliminary Financial Summary
2012 2011
Adjusted EBITDA* $333.3 mil vs. $ 331.1 mil
Adjusted EBITDA Q4* $ 95.9 mil vs. $ 80.9 mil
Adjusted EPS* $ 0.16 vs. $ 0.15
SSS Year 1.6% vs. 2.0%
SSS Q4 (0.2)% vs. 5.1%
Doubled Quarterly Dividend Rate in Q4 2012: $0.04 per share
*See reconciliation of Adjusted EBITDA from continuing operations and Adjusted EPS in the appendix.
The Wendy’s Company 4
2012
Positioning for Growth
Clarity of Direction and Action
“A Cut Above” Strategic Growth Drivers Recipe to Win
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The Wendy’s Company
“A CUT ABOVE”
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WENDY’S LONG -T ERM STRATEGIC GROWTH DRIVERS
Restaurant Ownership Shareholder
Optimization
Value-Enhancing
Financial Management Initiatives
Global Growth
Restaurant Utilization
& Daypart Expansion Core Organic
New Restaurant Development Growth
Strategies
Image / Experience Activation
North America Same- toreStore Sales Growth
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The Wendy’s Company
RECIPE TO WIN
PEOPLE 5-Star Talent
PRICE New QSR Quality at QSR Price
PRODUCT Play a different game. Superior
perceived quality, competitive price.
PROMOTION Strategically driven, tactically brilliant
PLACE The complete brand experience
PERFORMANCE Keeping the brand promise
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2012
Positioning for Growth
Clarity of Direction and Action
”A Cut Above”
Growth Drivers
Recipe to Win
Image Activation…Great Progress
The Wendy’s Company 9
2012 Image Activation
66 restaurants completed Reimages averaging +25% sales
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2012
Positioning for Growth
Clarity of Direction and Action
”A Cut Above”
Growth Drivers
Recipe to Win
Image Activation…Great Progress
Initiated Comprehensive Brand Reimage
The Wendy’s Company 11
2012
Positioning for Growth
Clarity of Direction and Action
”A Cut Above”
Growth Drivers
Recipe to Win
Image Activation…Great Progress Initiated Comprehensive Brand Reimage
Building 5-Star Talent Base
The Wendy’s Company 12
5-Star Talent
Greatest Source of Differentiation
The Wendy’s Company 13
2012
Positioning for Growth
Clarity of Direction and Action
“A Cut Above”
Growth Drivers
Recipe to Win
Image Activation…Great Progress
Initiated Comprehensive Brand Reimage
Building 5-Star Talent Base
Discontinue breakfast at certain restaurants …
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million charge 14 |
The Wendy’s Company
2013
Brand, Sales & Profit Growth
Solid North America Growth Outlook
SSS 2% to 3%
New Restaurant Development: 120 to 130 (system)
Image Activation: 200 reimages (system)
Image Activation to be standard in
Franchise New Builds, Renewals,
Remodels and Transfers
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Estimates based on Company’s current outlook The Wendy’s Company
2013
Brand, Sales & Profit Growth
Solid North America Growth Outlook
SSS 2% to 3%
New Restaurant Development: 120 to 130 (system)
Image Activation: 200 reimages (system)
Image Activation to be standard in Franchise New Builds, Renewals,
Remodels and Transfers
Image Activation Tier II and III expansion
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The Wendy’s Company
2013: Image Activation Accelerating
Tier II Tier III
2013 Outlook: 30 to 35 company reimages 20 to 25 company reimages
Investment: $510 to 550K $375K
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Estimates based on Company’s current outlook; Excludes maintenance and other costs The Wendy’s Company
2013
Brand, Sales & Profit Growth
Solid North America Growth Outlook
SSS 2% to 3%
New Restaurant Development: 120 to 130 (system)
Image Activation: 200 reimages (system)
Image Activation to be standard in Franchise New Builds, Renewals,
Remodels and Transfers
Image Activation Tier II and III expansion
Stronger High/Low Marketing Balance
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The Wendy’s Company
Determined to Re-Capture High/Low Balance
Premium Products Value Menu
High Low 19
The Wendy’s Company
2013
Brand, Sales & Profit Growth
Solid North America Growth Outlook
SSS 2% to 3%
New Restaurant Development: 120 to 130 (system)
Image Activation: 200 reimages (system)
Image Activation to be standard in Franchise New Builds, Renewals,
Remodels and Transfers
Image Activation Tier II and III expansion
Stronger High/Low Marketing Balance
More compelling Message, Media and Creative
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The Wendy’s Company
Grow Transactions & Sales
MESSAGE MEDIA CREATIVE
National Spend Strategically Driven,
Stepped Up in 2013 Tactically Brilliant
New Digital Agency 21
2013
Brand, Sales & Profit Growth
Solid North America Growth Outlook
SSS 2% to 3%
New Restaurant Development: 120 to 130 (system)
Image Activation: 200 reimages (system)
Image Activation to be standard in Franchise New Builds, Renewals,
Remodels and Transfers
Image Activation Tier II and III expansion
Stronger High/Low Marketing Balance
More compelling Message, Media and Creative
Brand Transformation More Visible
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The Wendy’s Company
A Total Brand Transformation
anchise Contempor Fresh Contempor Image &Stylish Updated ry Activ Pac ry Uniforms Brand kaging Menuboar tion—Logo Graphics Macon, ds G The Wendy’s Company 23
Market/Competitive Environment
QSR Traffic: +0.5% to 1.0%
QSR Traffic Share: 78.2% and growing
Share of Stomach … C-Stores, Grocery, New QSR and
Traditional QSR
Promotional Impact Strong … Short Term Influence
Relevant Brand Differentiation … Strong Big Brand
Still Key Long Term
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The Wendy’s Company
2013: Growth – The Imperative
Clear Vision
Conviction on How to Get There
Great Franchise Partners…Existing and New
Strong Financial Position and Flexibility
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The Wendy’s Company
STEVE HARE
CHIEF FINANCIAL OFFICER
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Wendy’s Q4 2012 Highlights
October—November November—December
North America
Same-Store Sales
1-Year 2-Year
Company-Operated -0.2% 4.9%
Franchise -0.6% 3.6%
Company
Restaurant Margin
Q4 2012 15.9%
Q4 2011 15.0%
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The Wendy’s Company
Q4 2012 Preliminary Financial Summary
(Unaudited) Better/
($ in millions except per share amounts)
Q4 2012 Q4 2011 (Worse)
Sales $ 554.0 $ 538.5 $ 15.5
Franchise revenues 75.9 76.5 (0.6)
Total revenues $ 629.9 $ 615.0 $ 14.9
growth rate 2.4%
Adjusted EBITDA from continuing operations* $ 95.9 $ 80.9 $ 15.0
Adjusted EPS $ 0.08 $ 0.04 $ 0.04
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*See reconciliation of Adjusted EBITDA from continuing operations and Adjusted EPS in the appendix. The Wendy’s Company
Wendy’s 2012 Highlights
2012 North America
Same-Store Sales
1-Year 2-Year
Company-Operated 1.6% 3.7%
Franchise 1.6% 3.4%
2012 Company
Restaurant Margin
2012 14.0%
2011 14.0%
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The Wendy’s Company
2012 Preliminary Financial Summary
(Unaudited) Better/
($ in millions except per share amounts)
2012 2011 (Worse)
Sales $ 2,198.3 $ 2,126.6 $ 71.7
Franchise revenues 306.9 304.8 2.1
Total revenues $ 2,505.2 $ 2,431.4 $ 73.8
growth rate 3.0%
Adjusted EBITDA from continuing operations* $ 333.3 $ 331.1 $ 2.2
Adjusted EPS $ 0.16 $ 0.15 $ 0.01
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*See reconciliation of Adjusted EBITDA from continuing operations and Adjusted EPS in the appendix. The Wendy’s Company
2013 Outlook
SSS +2% to 3%
Traffic and check growth from core business: new products, marketing, operations
Image Activation benefit, offset by fewer breakfast restaurants
Commodities +90 to 120 bps
Increases in beef and chicken, partially offset by cost-savings initiatives
Company-Operated Restaurant Margin +20 to 50 bps
Sales leverage, Image Activation impact, discontinuation of breakfast at certain
restaurants and cost savings initiatives
Adjusted EBITDA $350 to 360 million, +5% to 8% vs. 2012
Adjusted EPS $0.18 to $0.20, +13% to 25% vs. 2012
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Estimates based on Company’s current outlook The Wendy’s Company
Factors Affecting 2013 Outlook vs. 2012
2013: Higher Adjusted EBITDA growth in Q1, lower growth in Q4
2012 SSS and Adjusted EBITDA*
Q1 Q2 Q3 Q4 2012
SSS 0.8% 3.2% 2.7% -0.2% 1.6%
Adj. EBITDA* $63.9 $89.1 $84.5 $95.9 $333.3
Unusually soft results in Q1 2012, but expect Q1 2013 Adjusted EBITDA
more in line with historical trends
Expect the majority of $10 million franchise Image Activation incentive
will impact Q4 2013 G&A expense
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*See reconciliation of Q4 2012 and 2012 Adjusted EBITDA from continuing operations and Adjusted EPS in the appendix. The Wendy’s Company
2013 Image Activation Outlook
Image Activation Quarterly Reopenings Company Image Activation Plan
Q1 Q2 Q3 Q4 2013
Co. 6 35 37 22 100
Fran. 100
Total 200
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Estimates based on Company’s current outlook The Wendy’s Company
2013 New Restaurant Development
Expect 120 to 130 New System Restaurants in 2013
2013 New Restaurants
Company Franchise Global
2013 Expected Closures N.A. Company: 5 to 10 N.A. Franchise: 90 to 100 Global: 15 to 20
Note: new restaurant numbers represent the midpoint of the expected range; Estimates based on Company’s current outlook
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The Wendy’s Company
Image Activation Multi-Year Growth Plan
Image Activation Progress by Year-End 2015: 40
50% of Company restaurants 25
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out of 5 of the Wendy’s System restaurants 40 |
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Fr. New 300
Co. New 200
40
Fr. Reimage 25
Co. Reimage 100
45 200 200
69 16 100
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2011 10 2012 2013 2014 2015
Cumulative 10 76 301 766 1,331
IA Restaurants
Note: New Company restaurants were Image Activation building design beginning in 2012; 2 of 45 new Franchise restaurants were
Image Activation in 2012. Estimates based on Company’s current outlook The Wendy’s Company
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2013 Capital Expenditures
Restaurant Equipment & Maintenance $40
Product Dev./Equipment Upgrades/Other 20
Technology/POS 40
2012
Base Cap Ex 100 Cap Ex
New Restaurants 50 approx.
Reimages 95 $200 mil
Image Activation Cap Ex 145
Total Projected Cap Ex $245 36
Estimates based on Company’s current outlook The Wendy’s Company
Free Cash Flow &
Balance Sheet Flexibility
Core Growth Priority Accelerating Investment in Image Activation: Expect $440 to $500 million 2013 to 2015
Return Capital to Shareholders
100% increase in quarterly dividend rate effective Q4 2012
$100 million share repurchase program authorized through 12/29/13
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Estimates based on Company’s current outlook
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2013 and Long-Term Earnings Outlook
2013
Adjusted EBITDA: $350 to $360 million
Adjusted EPS: $0.18 to $0.20
Long-Term
Estimates based on Company’s current outlook
Average annual Adjusted EBITDA and Adjusted EPS growth rates in high-single-digit to low-double-digit range
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Breakout Sessions
Splash 12
8:50 am 2:25 pm
APPENDIX
Reconciliation of Adjusted EBITDA from Continuing Operations to Net Income Attributable to The Wendy’s Company
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The Wendy’s Company
Reconciliation of Adjusted Income and Adjusted Earnings Per Share from Continuing Operations to Net Income and Earnings Per Share Attributable to The Wendy’s Company
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