Slide Presentation Materials

EX-99.2 3 d861368dex992.htm SLIDE PRESENTATION MATERIALS Slide Presentation Materials

2013 Oldemark LLC

Investor Day 2015

February 3, 2015

Exhibit 99.2

2013 Oldemark LLC

David Poplar

Vice President

Investor Relations

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

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

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”

our

news

release

issued

February

2015

and

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 February 3, 2015 and posted on

www.aboutwendys.com.

Forward-Looking Statements and Non-GAAP Financial Measures

February 3 Investor Day Agenda

Time

Topic

Speaker

8:35 a.m.

CEO Overview

Emil Brolick

9:00 a.m.

2014 Results, 2015 Guidance and Long-Term Outlook

Todd Penegor

9:40 a.m.

Growth Acceleration Through Development

Abigail Pringle

10:00 a.m.

Break

10:15 a.m.

Restaurant Experience

Bob Wright

10:40 a.m.

Technology

Brandon Rhoten

11:00 a.m.

Product Demonstration

Lori Estrada

11:15 a.m.

Lunch

Noon

Marketing

Emil Brolick

12:30 p.m.

International

Darrell van Ligten

12:55 p.m.

CEO Summary

Emil Brolick

1:00 p.m.

Q&A

1:30 p.m.

Departure

2013 Oldemark LLC

2015 Investor

Relations Calendar

2015 Investor Relations Calendar: First Half (Tentative)

March 2: San Diego and Los Angeles (Wedbush)

March 3: San Francisco (Key)

March 4: Denver and Chicago (Stephens)

March 5: Boston (RBC)

March 6: New York (Citi)

March 19: Wells Fargo conference (Chicago)

March 25: Telsey conference (New York)

May 20: Morgan Stanley conference (Boston)

June 22: Stifel conference (Baltusrol, NJ)

June 23: New York (Stifel)

2013 Oldemark LLC

A GROWTH STORY

THE WENDY’S BRAND

THE WENDY’S COMPANY

EMIL BROLICK

PRESIDENT AND CEO

2014

SIGNIFICANT STRATEGIC

PROGRESS,

SOLID SALES, CHALLENGING

COST FACTORS

Strategic Decision Continuity

2012

•

Created Clear Vision

Cut above Brand Position

Recipe to Win

Growth Pyramid

•

Contemporize Brand

New Logo

New Packaging

New Ad Campaign

•

IA Accelerates

Incentive

Franchise

•

Discontinue Breakfast

2013

•

System Optimization #1

418 Restaurants

•

Franchise System

Strengthened

•

IA: Broaden Franchise

Engagement

•

Common POS decision

Aloha

•

RPRS Launch

2014

•

System Optimization #2

131 Canadian Restaurants

•

Mobile Pay Roll Out, Mobile

Order, Loyalty Test

•

60% Image Activation

Requirement by 2020

•

Refresh Option ~ $250K

•

International Strategy

Consulting Engagement

2015

•

System Optimization #3

•

Market Planning, Joint

Capital Planning, Produce

Strong IA, New Restaurant

Pipeline

•

Mobile Order and Loyalty

to Expand

•

Tech Lab to Open Q1

•

Recapitalization,

Substantial Cash

Returned to Shareholders

Wendy’s Brand Transformation Journey

2012 -2014 & Beyond

2012

2013

2014

2015

SRS -

1.6%

1.9%

2.3%

~ 3.0%

-2 YR

3.6%

3.5%

4.2%

5.3%

IA –

(Includes New)

234

486

530

CUM

308

794

1,324

NA NEW

Wendy’s Brand Transformation Journey

2012 -2014 & Beyond

Enhance Growth

Wendy’s Brand Transformation Journey

2012 -2014 & Beyond

Enhance Economics

2012

2013

2014

2015

Adjusted EBITDA*

$333.3

$367.1

$392.7

$390-$400

0.7%

10.1%

7.0%

5%-8%*

Adjusted EPS*

$0.17

$0.30

$0.34

$0.33-$0.35

13%

76%

13%

10%-17%*

NA Restaurant

Margin

14.0%

15.4%

15.8%

16.4% -16.8%

*See reconciliation of non-GAAP measures in appendix. Comparison of 2015 to 2014 Adjusted EBITDA and Adjusted EPS excludes gains from restaurant sales and other asset sales.

2012

2013

2014

2015

Quarterly DIVIDEND

0.04

0.05

0.055

.055 or >

100%

25%

10%

Flat or >

SH Repo

$69M

$299M

TBD

Wendy’s Brand Transformation Journey

2012 -2014 & Beyond

Shareholder Returns

2020 SYSTEM GOALS

$2MM

20%

30%

1.3x+

1,000

AUVs

Restaurant

Margins

System

Restaurant

Cash Flow

Increase

Sales to

Investment

Ratio

New NA

Restaurants

60%

Total

Reimaged

High Expectations to Brand Wendy’s

TWO KEY GROWTH DRIVERS

BRAND

RELEVANCE

ECONOMIC MODEL

RELEVANCE

Growth Drivers Continue

Economic Model

Relevance

Investment

Same Restaurant

Sales / Traffic

Margins

Cash on

Cash ROI

RESTAURANT

ROIC

Earnings

Growth

Free Cash

Flow

TSR

WENDY’S COMPANY

GROWING THE WENDY’S BRAND

HOW

GROW

BRAND RELEVANCE + ECONOMIC RELEVANCE = GROWTH

Financial Management

Global Growth

Restaurant Utilization &

Brand Access

System Optimization

New Restaurant Growth

Image / Experience Activation

North America Same-Restaurant Sales Growth

Shareholder

Value-Enhancing

Initiatives

Core Organic

Growth

Strategies

Food Service, Huge Market

Always Growth for Relevant Brands

$435

Billion

61+ Billion Visits

Source: NPD Crest

2014 Restaurant Industry Sales

QSR

79%

Casual

Dining

10%

Mid

Scale

10%

QSR Growing Share –

Likely to Continue

2014

5yr Pt. Change

78.9%

9.5%

10.2%

+2.2

(1.5)

(0.8)

Restaurant Traffic Share Change

Source:

The

NPD

Group

CREST

®;

Y/E

November

‘14

QSR

Casual

Midscale

New QSR & Retail Leading QSR Growth

Source:

The

NPD

Group

CREST

;

year

ending

November

2014

851,551

320,729

45,200

+41%

+4%

PC5YA

New QSR

Retail

All Other QSR

Incremental Traffic (000s): YE Nov ‘14 v. ‘09

New QSRs Deliver Higher Consumer Food Ratings

% New QSR Consumers Rating Attribute as “Excellent”

Source:

The

NPD

Group’s

National

Eating

Trends

and

CREST®

services;

year

ending

May

2013

Taste/Flavor

49%

Fresh Food

49%

Prepared My Way

48%

Quality Food

47%

Healthy Options

36%

Kid Friendly

36%

Atmosphere

35%

Affordable

29%

Food Variety

35%

TOP ATTRIBUTES

BOTTOM ATTRIBUTES

EXPERIENCE

HIGH

LOW

FUNCTIONAL

EMOTIONAL

BRAND VISION

2016

Wendy’s: New QSR Quality, QSR Price

% Wendy’s Customer Rating Attribute as “Excellent”

* “Total Food was Fresh”

was added to the CREST survey in Jan’11

24%

26%

28%

30%

32%

34%

36%

38%

2006

2007

2008

2009

2010

2011

2012

2013

2014

Fresh Food

Taste/Flavor

Prepared My Way

Quality Food

Source: The NPD Group / CREST

; year ending February 2014

NEW

QSR

Wendy’s: New QSR Quality, QSR Price

Average Eater Check

Source: The NPD Group / CREST

; Y/E November ‘14

$5.34

$7.84

LUNCH

NEW

QSR

$5.73

$8.08

DINNER

+47%

+41%

New QSR Continuing to Grow Share

New QSR Share of QSR Meals

Source: The NPD Group / CREST

; Y/E November ‘14

3.4%

2009

4.8%

2014

TRADITIONAL

QSR

QSR RETAIL

“C STORES”

QUICK CASUAL

“NEW QSR”

+ Grocery

It’s about the Food…

Category-Leading Chicken Sandwiches

Homestyle Chicken

Sandwich

Spicy Chicken

Sandwich

Asiago Ranch

Chicken Club

It’s about the Food

Dave’s Hot and Juicy Burgers

BACONATOR ®

Single

Double

Triple

It’s about the Food

The Best QSR Salads in The Business

Barbeque Ranch Chicken Salad

Apple Pecan Chicken Salad

Berry Almond Chicken Salad

Asian Cashew Chicken Salad

Yes, The Food Service Business

The Total Experience Perfectly Packaged

DAVE STARTED THIS IN 1969 –

NOT TESTING IT TODAY

MADE TO YOUR TASTE WITH YOUR TOPPING CHOICES

SERVED HOT OFF THE GRILL, NOT HELD

FRESH…NEVER FROZEN NORTH AMERICAN BEEF TASTES BEST

STRIVING TO BE THE BEST WE CAN BE VS. SOMETHING WE ARE NOT

“CUT ABOVE”

WENDY’S NATURAL BRAND POSITION

Brand Credentials

HOW WE GROW

BRAND RELEVANCE + ECONOMIC RELEVANCE = GROWTH

Shareholder

Value-Enhancing

Initiatives

Core Organic

Growth

Strategies

System Optimization

Financial Management

Global Growth

Restaurant Utilization &

Brand Access

New Restaurant Growth

Image / Experience Activation

North America Same-Restaurant Sales Growth

A Facilitator of Our Brand

Transformation and a

Catalyst for Growth for

the Wendy’s Brand

System Optimization Is…

Announcing System Optimization #3 Today

~ 500

5% of System

2014 G&A Initiative Created Opportunity to Right Size G&A

Company Restaurants to Sell

Ongoing Transition to Own

Dispositions

Commence

2015

with

Completion

Mid

2016

Important Brand Stewardship

Facilitator of Key Tests that Require Our Leadership

Facilitate Strengthening of Franchise System

Facilitate System Growth & Brand Renewal

Image Activation

New Restaurants

Technology

Enhance Consistency of Performance and Long Term Growth

Demonstrate “Skin in the Game”

& System Leadership

2014

2012

Difference

US Franchisees

Total Restaurants

Avg. Ownership Per Franchisee

331

4,895

362

4,528

( 31 )

+367

Largest 20

% of System

Average Size

2,282

114

1993

100

+289

+14

Next 21 -

% of System

Average Size

1,056

872

+184

All Other

% of System

Average Size

1,557

1,663

( 106 )

( 6 )

Franchise Partners Who Want Growth!

Shareholders Win …Growth and Income Achievable

Unique and Credible Brand Position

Improving Restaurant and Wendy’s Company Economic Model

Dividends Expected to Grow with Income

Strong Leadership Team

Strong Wendy’s Brand With Rich Food Heritage

Exceptional Base of Growth Oriented Franchisees

2013 Oldemark LLC

Todd Penegor

Chief Financial Officer

2013 Oldemark LLC

Financial Update

2014 Preliminary Results

Image Activation Progress

System Optimization Update

System Optimization Evolution

2015 Guidance

Long-Term Outlook

Financial Update

2014

Preliminary

Results

Fourth Quarter Financial Highlights

N.A. Company SRS

1.9%

3.1%

2-Year 5.0%

N.A. Restaurant

Margin

16.8%

16.3%

+50 bps

G&A

$60.1

$77.2

$17.1

Adjusted EBITDA*

$107.1

$89.0

20.3%

Adjusted EPS*

10¢

11¢

(9.1)%

2014

2013

B/(W)

*See Reconciliation of Adjusted EBITDA and Adjusted EPS in the Appendix

$Mils

$Mils

Full Year Financial Highlights

N.A. Company SRS

2.3%

1.9%

2-Year 4.2%

N.A. Restaurant

Margin

15.8%

15.4%

+40 bps

G&A

$263.3

$293.8

$30.5

Adjusted EBITDA*

$392.7

$367.1

7.0%

Adjusted EPS*

34¢

30¢

13.3%

2014

2013

B/(W)

*See Reconciliation of Adjusted EBITDA and Adjusted EPS in the Appendix

Solid Two Year SRS Trend

4.3%

5.2%

5.0%

2.3%

Improved Quality of Earnings

$Mils

2.3% Growth

7.0% Growth

*See reconciliation of non-GAAP measures in appendix

$367*

$362

$371

$393*

$22

($5)

$46

$31

($3)

($72)

2013 Reported

Adj. EBITDA

Gains on

Surplus Properties

& Other Assets

2013 Adj. EBITDA

Excld. Gains

Net Franchise

Revenue

G&A

Savings

Core

Restaurant

IA Impact

Sold Restaurant

EBITDA

(S.O. I & II)

2014 Adj. EBITDA

Excld. Gains

Gains on

Rest. Sales &

Other Assets

2014 Reported

Adj. EBITDA

Image Activation Exceeds Expectations

Total System Annual

Reimages & New Builds

Total System Cumulative

Reimages & New Builds

57%

Franchise

43%

Company

211

Company Reimages

216

Franchise Reimages

Company New

Franchise New

2011A

2012A

2013A

2014A

308

794

2011A

2012A

2013A

2014A

234

486

Image Activation Financial Returns Continue to be Solid

Investment

$450-650K

$1.5 -1.9M

Construction Closure

5 weeks

13 weeks

Sustainable Sales Lift

10-15%

25-35%

Profit Flow Through**

40%+

Reimages*

Scrape &

Rebuilds*

*Estimates based on Company’s current outlook; Excludes Maintenance; Median Cost for U.S. System

**Based on Company Performance

Facilitating Franchisee Commitments for Reimages and New Builds

Market & Joint Capital Planning

Multi-Year Investment Plan

Construction Support

Multi-Year Incentives

60% Image Activation Requirement by 2020

Turnkey Services

Canadian Build-to-Suit program

Building a Stronger Wendy’s –

System Optimization Status

System Optimization I

System Optimization II

Building a Stronger System

•

Sold 418 restaurants west of the Mississippi

•

Delivered EBITDA Neutral

•

Completed Q1 2014

•

Plan to sell all 131 restaurants

•

Sold 29 in 2014; Remainder to be sold by end of Q2

•

EBITDA dilutive near –

term; Accretive long-term with build-

to-suit new development

•

Sold 34 restaurants

•

Purchased 27 restaurants

•

Bought & flipped 18 restaurants

•

Facilitated sale of 11 restaurants from one franchisee to

another

•

Executed 30 transfers between franchisees, totaling nearly

200 restaurants

U.S. System

Optimization

Canada System

Optimization

Ongoing Restaurant

Optimization

$Mils

N.A. Company Restaurant Ownership Evolution

Franchise

77%

81%

84%

Company

23%

19%

16%

Franchise Entities

475

473

407

Restaurants/Franchisee

N.A. Company AUV

$1.484 (+2.0%)

$1.514 (+2.0%)

$1.593 (+5.2%)

2012

2013

2014

$Mils

Significant Progress on G&A

$294

$263

($10)

$11

$23

2013

Actual

Stock Comp

Salaries

Franchise

Incentives

Incentive Comp

S.O. I Savings &

2014 G&A Initiatives

2014

Actual

Growth and Income -

2014

Invested for Growth (Cap Ex)

$18M

Technology

$35M

New Restaurants

$190M

Image Activation

Year -

End

3.0x

Net Debt / TTM Adj. EBITDA

$1,448M

Debt

$267M

Cash

Returned Cash to Shareholders

10%

Q4 Increase

$75M

Dividends

$299M

Share Repurchases

2014 Recap

Highlights

Solid Two-Year Sales Growth

Improved Quality of Earnings through

Ongoing System Optimization

Image Activation Adoption Exceeding Expectations

Continued Proactive G&A Management

Returned Cash to Shareholders ($374 Million)

2014 Recap

Challenges

Commodity Pressure –

Primarily Beef

Image Activation Closure Time

Q1 Weather

Price / Value Customer

System

Optimization

Evolution

•

Selective Buying and Selling of Restaurants

•

Targeting approximately 5% Company Ownership

by mid-2016

•

Focused on Building a Stronger Wendy’s

•

Commitment to Growth

•

Image Activation and New Restaurant

Development Commitments

•

Reinvestment in Canada –

Build-to-Suit Program

•

Improved Economic Models for Company and Franchisees

•

Strengthening of The Franchise System

System Optimization III

Financial Management

Global Growth

Restaurant Utilization

& Brand Access

System

Optimization

New Restaurant Growth

Image / Experience Activation

North America Same-Restaurant Sales Growth

•

Approximately 5% Company Restaurant Ownership

•

Maintain role as one of the largest operators

•

Dispositions Commence in Q3 2015 with Completion by Mid-2016

•

Diversified Geographic Company Ownership Footprint

•

Facilitate growth through efficient testing and initiatives

•

Support ongoing system optimization to strengthen the system

•

Scale up in markets we retain

•

Buy and flip restaurants

•

Facilitate franchise-to-franchise transactions

•

Focus on Getting Restaurants in the Hands of the Best Operators with

the Willingness and

Ability to Grow

Company Footprint Destination

Ongoing System Optimization

Criteria for Franchise Buyers

Financial

Aligned and Up-to-Date with Vision and Brand Initiatives --

Reimaging schedule, New Restaurant Development, Common POS, Relationship Agreement

Demonstrated History of Growth and Reinvestment

Demonstrated Operational Leadership and

Commitment to People Activation

Geographic Proximity to Optimize Operational Support

Brand

Growth

Leadership

Geography

Well Capitalized, Access to Capital

System

Optimization

facilitator

our

brand

transformation

and

catalyst

for

growth

the

Wendy’s

brand

System Optimization –

Quality of Earnings Evolution

2012

23% Co. Ownership

2017

~5% Co. Ownership

Total G&A Savings of $82 Million

Generating Strong Rental Income from Retained Real Estate Sites

Rent &

Royalties

Company

Restaurants

Other

50%

70%

29%

2015 Guidance

The Company’s 2015 and long-term outlook do not include any potential impact of the Company’s anticipated refinancing or potential shareholder return initiatives.

2015 Guidance

N.A. Company Operated Restaurants

SRS Growth

Restaurant Margins

+40 bps

16.4-16.8%

+40 bps

+70 bps

+60-100 bps

1.9%

2.3%

~3.0%

15.4%

15.8%

2013A

2014A

2015E

2013A

2014A

2015E

2015 Guidance

Excludes Gains from Restaurant Sales & Other Asset Sales

Adjusted EBITDA

Adjusted EPS

+3%

+2%

+5-8%

+10-17%

$362M

$371M

$390-400M

33-35¢

29¢

30¢

2013A

2014A

2015E

2013A

2014A

2015E

2015 Quality of Earnings Evolution

$Mils

*See reconciliation of non-GAAP measures in appendix

5% to 8% Growth

$393*

$371

$390 -$400

$0-$5

~ $15

~ ($55)

($22)

~ $40

$20-$25

2014 Reported

Adj. EBITDA

LY Gains on

Rest. Sales &

Other Assets

2014 Adj.

EBITDA

Excld. Gains

Royalties & Net

Rental Income

Core EBITDA

Growth

(Incl IA & NRD)

G&A

Savings

All Other

S.O. I & Other -

US Disposed

Rest. EBITDA

S.O. II -

WROC

Disposed

Rest. EBITDA

S.O. III -

Disposed

Rest. EBITDA

2015

Adj. EBITDA

2015 –

More Progress on G&A

$263

$250

($8)

($7)

($5)

$22

2014 G&A

Incentive

Comp

Merit,

53rd wk

& Other

Investment

Initiatives

(Primarily IT &

Development)

S.O. III -

Savings

Franchise

Incentives

S.O. II -

WROC

Savings

2014 G&A

Cost Reduction

Initiative

2015 G&A

Target

$Mils

2015 Guidance –

P&L / Cap Ex

Capital Expenditures of ~$265-275M

2015 Includes a 53

Week

Interest Expense Increase of $4-5M

Reported Effective Tax Rate of 42-43%

Includes ~$180M for Reimages & New Builds

Includes ~$40M for Technology Initiatives

Largely Offset by Affordable Healthcare Act

Result of Non-Deductible Goodwill on Restaurant Sales

Depreciation: ~$20M Accelerated, ~$145M Ongoing

2015 Guidance: Development

Company Image Activation

New Restaurants

150

Reimaged Restaurants

Franchise Image Activation

New Restaurants

300

Reimaged Restaurants

~$8-10M in Incentives

Royalty Relief & Construction Support

Long-Term

Outlook

The Company’s 2015 and long-term outlook do not include any potential impact of the Company’s anticipated refinancing or potential shareholder return initiatives.

2020 System Goals

$2MM

20%

30%

1.3x+

1,000

AUVs

Restaurant

Margins

System

Restaurant

Cash Flow

Increase

Sales to

Investment

Ratio

New NA

Restaurants

(Gross)

60%

Total

Reimaged

Confidence in Long-Term System Goals

•

Restaurant Leverage

•

Image Activation Flow -Throughs

•

System Optimization

•

Labor Evolution

•

Operations Simplification /Cost

Savings Initiatives

•

Premium LTO’s

•

Combo Meals & Attachment Rates

20% Restaurant Margins

$2M AUV

•

Image Activation & New Builds

•

Brand Initiatives

•

People Activation

•

Daypart Expansion

•

Throughput Improvements

•

Closures of Underperforming

Restaurants

Image Activation Journey –

N.A. Cumulative

2014

2017

2020

Reimages

685

>1,800

>3,000

New Builds

109

465

1,109

Total

794

>2,265

>4,109

Percentage of System IA

(Net of Closures)

12%

>35%

>60%

Long-Term Guidance

SRS

~3%

Company

2.25-3%

System

2.25-3%

System

2.25-3%

System

Adj. EBITDA

5-8%

Flat

Low-Single

Digit

High-Single

Digit

Adj. EBITDA

Margin

20-22%

28-30%

32-34%

~35%

Adj. EPS

10-17%

High-Single

Digit

High-Single

Digit

Mid-to-High

Teens

2015

2016

2017

2018

High-Single Digit

“Organic”

Growth

Upon completion of its refinancing, the Company plans to update its forecast and

expects its long-term earnings per share growth to improve to approximately 20%.

Continue to ensure Company, system and shareholders are getting an attractive return on investment

G & A: Long Term Perspective

$Mils

$294

$263

~$250

~$230

2013

2014

2015

~5% Ownership

Capital

Spending

Long

Term

Perspective*

$Mils

*Excludes redeployment of proceeds from SO outside of current business

$198

$224

$298

$265-275

$135-145

$80-90

~$75

2012

2013

2014

2015

2016

2017

2018

Strong Free Cash Flow Post-System Op III

$Mils

Free Cash Flow = Cash From Operations Less Capital Expenditures (Prior to any potential reinvestment)

$625-700M

Available Free Cash Flow

$400-475M

Pre-Tax

Cash Proceeds

from Rest. Sales

$125-$150

$275-$325

$250-$275

~$75

$100-$125

$200-$225

2015

2016

2017

2018

2015

2016

2017

Income and Growth Focus

Utilize “Excess”

Cash to Repurchase Shares

Dividend Growth in Line with Earnings

Invest in the Business

Leveraging Our Balance Sheet

Improved Free Cash Flow

Return Cash to Shareholders

Improvement in ROIC Over Time

Opportunities to Consistently Return Cash to Shareholders

Share Repurchases

Utilize “Excess”

Cash to

Repurchase Shares

History of Share Repurchases

$69M

$299M

2013

Opportunity to Leverage Available Cash for Highest Total Shareholder Return

Dividends

Continue to Grow in Line

with Earnings

History of Predictable Dividends Increases

+10%

2014

+25%

2013

+100%

2012

2014

Utilizing Balance Sheet to Return Cash to Shareholders

Recapitalization to Target Five to Six Times Net

Debt to 2014 Adjusted EBITDA

Capital Structure Consistent with Strong Free

Cash Flow Post System Optimization

Intend

Return

Substantial

Cash

Shareholders

Image Activation

New Development

Build-to-Suit Program

Incentives

Buying Restaurants to Strengthen the System (Operate

or Buy / Flip)

International Acceleration or Expansion

Other Accretive Growth Opportunities

Opportunities to Invest for Accelerated Growth

Invest in our Business

Transformation of Wendy’s Company Economic Model

Generates Higher EBITDA Margins

Enhances Quality of Earnings

Less Capital Intensive

Leveraging Our Balance Sheet

Supports Long-Term Income and Growth Commitment

System Optimization Provides a Stronger Platform to Return Cash to Shareholders

More Predictable and Sustainable Earnings Growth

Building a Stronger Wendy’s

Continue to Execute Against our Strategic Growth Priorities

Improving the

Company & Franchisees

Economic Models

Growth Pyramid

“A Cut Above”

Brand Positioning

Recipe to Win

Strengthening the

Franchise System through

Concentrated Ownership

Transforming the System by Facilitating

Growth through Image Activation

& New Restaurant Development

Enhancing Our Quality of Earnings &

EBITDA Margins

Creating Flexibility

for Sustainable, Predictable

Long-Term Income & Growth

Adjusting our Capital Structure &

Accelerating Long-Term EPS Growth

Growth Acceleration

Through Development

Abigail E. Pringle

Chief Development Officer

2013 Oldemark LLC

Profitable,

sustainable,

restaurant

growth

IMPROVE CORE BRAND HEALTH

60%

of system

reimaged by

2020

Partner to Improve

Health of Portfolio

UNIQUE RESTAURANT

EXPERIENCE

RELEVANT BRAND

CHANGE AS THEY

CHANGE

DRIVE NEW RESTAURANT

GROWTH

Grow 1,000

new restaurants by

2020

Net Positive Growth

by 2016

ECONOMIC MODEL

RELEVANCE

BRAND

RELEVANCE

KEY GROWTH DRIVERS

Total System Annual

Reimages & New Builds

Total System Cumulative

Reimages & New Builds

57%

43%

211

Company Reimages

216

Company New

Franchise New

Franchise Reimages

Franchise

Company

234

486

2011A

2012A

2013A

2014A

308

794

2011A

2012A

2013A

2014A

Image Activation Exceeds Expectations

36% of Franchisees in 2 Years

US and Canada

Long Term & New to the Brand

Smallest to Largest

FRANCHISE EARLY ADOPTERS

Testament to Commitment

“It shows they care about the

restaurants, they care about the

food…

and

that means they CARE

ABOUT ME, THE CUSTOMER.”

Image Activation vs. Existing Wendy’s

Source: Image Activation Buyer Reaction Studies, UM Standard Design

27pts

40pts

Attractive

Modern/Up-to-Date

2014 IA Standard

IA ELEVATES CUSTOMER EXPERIENCE

A New QSR Experience

Scrape &

Rebuilds

Standard

Remodels

System IA Sales Lift, 2014 Class

CUSTOMERS VOTING WITH THEIR WALLETS

30+%

~10%

More Customers,

More Often

~70%

Of Sales Lift Through

The Dining Room

~80%

Of Sales Lift From

Transaction Growth

Results observed in 2013 & 2014 US Company Remodels

2014 Non-IA

2014 IA

Image Activation Driving Customer Count Growth

Design is not just what it

looks like and feels like.

Design is how it works.

Steve Jobs

PERFORMANCE

PLACE

PROMOTION

PRODUCT

PRICE

PEOPLE

Confident In Our Ability to

Execute Strategy

COMMITMENT TO ECONOMIC MODEL RELEVANCE

TIERS

DESIGN

STANDARD

WITH CUSTOMIZABLE

UPGRADES

2013

2014

NOT ALL RESTAURANTS ARE CREATED EQUAL

REMODEL W/ UPGRADES

SCRAPE/GUT & REBUILD

SUNSET/CLOSURE

STANDARD REMODEL

REFRESH

$250K or

less

$450K to

$650K+*

~$1.5M to

$1.9M

All costs are median US.

*Remodel Cost does not include def. maintenance

AUV

Meet the Needs of Our Diverse System:

Alternative Design - Economically Viable Solution

~$250K

REIMAGING REQUIREMENT

Franchisees reimage a

minimum

of 60%

of existing restaurants

by end of 2020

10% per year

MARKET PLANNING

WHAT

Should We Invest in

Our Restaurants

Comprehensive Approach

Customer Perspective

Competitive Insight

Detailed Review of Real Estate

Potential New Growth

Foundation for Joint Capital Plan

Nearly 250

Franchise

Entities: 3500+

Restaurants

Franchise Collaboration and Support

High and Low Sales Volumes

Leased and Fee Properties

Growing and Mature Trade Areas

Competitive Intensity

Customer Demographics

Scrape/Gut, Remodel, Refresh, Sunset/Close

Relocations and Untapped Opportunities

TOTAL MARKET VIEW

WHAT INVESTMENT IS NEEDED TO GROW?

MARKET PLANNING

WHAT

Should We Invest in

Our Restaurants

JOINT CAPITAL PLANNING

HOW

Should We Execute Our

Investment Plan

Prioritization

Pacing and Sequencing

Financial Implications

Expandability Review

Franchise Agreements

Franchise Collaboration and Support

MARKET PLANNING

WHAT

Should We Invest in

Our Restaurants

JOINT CAPITAL PLANNING

HOW

Should We Execute Our

Investment Plan

MULTI-YEAR

REINVESTMENT PLAN

Comprehensive Plan for

Growth

Franchise Collaboration and Support

Grow Their

Business

Build Our Brand

REINVESTMENT

PLANNING

TURNKEY

SERVICES

FINANCIAL

INCENTIVES

CONSTRUCTION

SUPPORT

105

FRANCHISE PARTNERSHIP

DRIVE NEW RESTAURANT

GROWTH

Grow 1,000

new restaurants by

2020

Net Positive Growth

by 2016

+12

+64

-28

-40

-20

North American System

110

112

2013

2014

2015

2016

2017

New Restaurants

NET POSITIVE GROWTH BY 2016

108

Image Activation Seeing 10-15% Higher Sales vs. Previous Design

$1.6M

$1.9M

2011

2014

IA NEW BUILDS OUTPERFORMING

PREVIOUS DESIGN

COST EFFECTIVE

INVESTMENT

DESIGN THAT SETS

US APART

Value Engineering

Alternative Footprints

Structure & Design

Solutions

Improved Margins

Listen to Customer

Differentiate Experience

Maximize Sales Potential

Drive Customer Counts

Compelling New Restaurant Economics

Sales to

Investment

Ratio

1.3x

111

Enhanced Customer Experience

Advanced Technology

Reduced Investment

Evolved Image Activation Design

Rethinking the Box

NEW RESTAURANT DESIGNS

TRADITIONAL AND NON TRADITIONAL

111

GROWTH THROUGH MULTIPLE PLATFORMS

Grow Canadian Business

BUILD TO SUIT: CANADIAN GROWTH

362

486

2014

2020

113

2015: CONTINUE GROWING …

Company Image Activation

New Restaurants

150

Reimaged Restaurants

Franchise Image Activation

New Restaurants

300

Reimaged Restaurants

~$8-10M in Incentives

Royalty Relief & Construction Support

COMPELLING RESTAURANT ECONOMICS –

FUEL GROWTH

INCREASING BRAND RELEVANCE -

A CUT ABOVE EXPERIENCE

FRANCHISEES COMMITED TO GROWTH AND WENDY’S BRAND

INVESTING IN COLLABORATIVE FRANCHISE PARTNERSHIP

INCREASING BRAND ACCESS WITH 1000 NEW PROFITABLE STORES

COMMITED TO REIMAGING SYSTEM –

IMPROVE BRAND HEALTH

114

Confident in Ability to Execute our Strategy

115

BREAK

Presentation will resume

at 10:15 a.m.

116

Bob Wright

EVP, Chief Operations Officer

2013 Oldemark LLC

118

119

120

PEOPLE

CAPABILITY

FIRST

PEOPLE

Source of

Differentiation

OUR

GREATEST

ASSET

121

Find Joy in Making

the Lives of Others Better

Have a Heart for

Serving Others

Deliver the Brand Promise

to EACH Customer

Reflect One System,

One Brand

Our People…

Dave Thomas…

123

The Pursuit of Happiness

My vocation has to do with restaurants.

I wanted to study about their qualities in

their every way.

The work that I am planning to do isn’t

the best paid work, but it isn’t the worst

paid by a long shot. I believe what counts

most in regard to work is whether you

like to do it or not.

Our Franchisees

Dedicated to Dave’s Values

124

US Franchisee Breakdown

1-19

20-39

40+

28.4%

17.4%

54.1%

273

Over 80%

Started in a Restaurant Position

331

4,856 Restaurants

US Franchisees

Canadian Franchisees

258 Restaurants

Multi-Unit Operators’

Responsibilities

125

Development & Staffing of Management Teams

Day to Day Restaurant Operations

Restaurant Business Reviews

Local Marketing

Facilities Reinvestment

New Restaurant Development

•

Critical leader in each restaurant

•

Responsible for

•

Hiring, training, development &

support of their restaurant teams

•

Experience of Each Customer

•

Quality, Service & Cleanliness Standards

•

Financial Success

Restaurant General Managers

126

Training & Development is Core

127

Self-Paced

Learning

Leader-led

Support

Restaurant

Application

Support

Broad & Diverse

Employee Base

Target

Wide-ranging

Focus Areas

Use Proven

Adult-learning

Methodologies

Leading-Edge Training Solutions

128

Over 100 Custom

E-Learnings

Operations Standards

Library

Multi-Unit Operator

Academy Programs

Legacy Training Systems

129

Performance

Support Tools

Food Safety &

3-Phase Training

Leader-Led

Development Classes

Wendy’s Careers

Hire The Smile -

Train The Rest

131

At Wendy’s…

Recognition

GROW

Personally

areer

Ladder

Advancement

Engaged

Employees

Influence

OPPORTUNITIES

Training

Flexibility

Development

132

Anyone with a balanced

education, a strong work

ethic & passion for serving

others can be incredibly

successful at Wendy’s.

133

The Bottom Line…

Elimination of Regional Structure

134

North Region

Philadelphia

Canada Region

Oakville

West Region

Phoenix

Philadelphia

Chicago

Boston

Oakville

Vancouver

Salt Lake City

Phoenix

Dallas

South Region

Atlanta

Columbus

New Orleans

Orlando

Flatter North American Structure

135

Columbus

Canada

Oakville

Philadelphia

Chicago

Boston

Columbus

Denver

New Orleans

Orlando

Atlanta

136

PEOPLE

CAPABILITY

FIRST

137

IT’S IN

OUR DNA

Born with a Brand Purpose…

138

Wendy’s has Always Been A Cut Above

139

Attendant in Dining Room

Fresh Beef Tastes Best

Made-to-Order

Table & Chairs Like at Home

Drive-Thru

Custom Built for You

Dave CONNECTED in 1969

Very Limited Menu

(Experts)

Heat

Lamps

Made

to Order

Movable

Tables &

Chairs

Cleared

Tables

Custom

Preparation

BRAND RELEVANCE A CONTINUOUS QUEST

140

Dave CONNECTED in 1969

Very Limited Menu

(Experts)

Heat

Lamps

Made

to Order

Movable

Tables &

Chairs

Cleared

Tables

Custom

Preparation

BRAND RELEVANCE A CONTINUOUS QUEST

141

2015

Factors Rated Most Important at QSR

Source: Consumer Brand Metrics, Technomic, Inc.

90%

91%

92%

94%

95%

96%

Affordable Quality

Friendly Service

Quick, Quality Service

Clean Interior

Quality Food

Taste/Flavor

Brand Relevance in 2015

Everyday Value

Friendly Service

Quick Convenient Service

Fresh

Customization

Image Activation

143

144

IT’S IN

OUR DNA

145

OPERATING

SYSTEMS

Operating Systems are a Strength

Operating systems are a

strength of Wendy's for:

•

Consistent daily operations

•

Implementation of new

products & initiatives

•

Food safety

•

Service Standards

147

Annual Balanced Objective Measurement

86%

2014 CEI Average

+11%

A & B Restaurants

Operations

Standards

Customer

Feedback

People

Systems

Facility

Evaluation

Customer Experience Index

The Cut Above Customer Experience

148

Feedback

Surveys

60.8%

68.2%

72.3%

74.4%

2011

2012

2013

2014

Upward VOC Trend

Customer

Call Center

Common Restaurant Network Design

149

Wendy’s RSC

Mobile Order

Bank

Restaurant

Customer WiFi

POS

Kitchen Equipment

Franchisee

Customer Self

Order Kiosk

Bluetooth

Beacons

Internet

Common POS Foundation

150

Wendy’s Confidential

100% by 2016

In Process

Live

Scheduling

2651

44%

1605

26%

1844

30%

Mobile Fits Customers’

Self Serve Desires

Mobile Order

Mobile Pay

Customer Self

Order Kiosk

151

Separating Order & Pay From Pick Up

167

Separating Order & Pay From Pick Up

Pick Up

Order / Pay

168

SINGLE MENU

1 WINDOW

SINGLE MENU

2 WINDOWS

Y-LANE

2 WINDOWS

+6%

+28%

Pick-Up Window Speed & Capacity

Base

Based upon car arrival rate of 137 cars/hour

Y-Lane Installed in 35 Restaurants

170

100

Cars

Per Week

2.6%

Sales vs.

Control

Restaurant Margin Improvement Continues

North American Company Restaurants

Sales

Traffic

2012

2013

2014

2015E

2020E

14.0%

15.4%

15.8%

16.4 -

16.8%

20.0%

171

Wage Pressure Increases

State Minimum Wage Increases

Increased Through

2014 Ballots

Increase on

January 1

Introduced

Bills in 2014

Considered

Increases

Enacted Increases

in 2014 (+DC)

Labor Analysis Underway-Complete Q2 ‘15

82%

Service

Admin

Tasks

Non-Service

Opening

Closing

Cleaning

13%

Labor Study Objectives

Reduced Labor Hours

Unlock Speed & Capacity

Efficient Opens & Closes

Adjusted Positioning Guides

Customer Focused Service

175

Operations Simplicity Relative Advantage

163

144

114

Total Menu Items -

Includes Flavors & Sizes

Actual Menu Items -

Excludes Size Options

Shakes/

Parfaits

Cones

Floats

Menu Item Management

Streamlined Cup Set

& Packaging

Streamlined Cup Set

& Packaging

Reduction of

Over 20 SKUs

Reduction of

Over 20 SKUs

*Internally Sourced – Non-Breakfast Menu Items

Growth Drivers Continue

Economic Model

Relevance

Brand

Relevance

People Make the Difference

176

177

OPERATING

SYSTEMS

PERFORMANCE

DRIVEN

Functional Execution

AND

Emotional Connection

GROWING Brand Relevance

Love to Win

Hate to Lose

181

Disciplined Management

Annual

Business

Plans

Qtrly Business

Reviews

Weekly/Monthly

Balanced

Scorecards

Ongoing

Rewards &

Recognition

Success = Customer Count Growth

OWNING our trade area is how we beat the competition

OWNER

Management Team & DM

FOCUS

Customer Experience

RESTAURANT

Success = Customer Count Growth

OWNING our trade area is how we beat the competition

OWNER

DVP, Franchisee,

Multi-Unit Operators

FOCUS

Customer Experience,

Facilities & Development

MARKET

184

2013 Oldemark LLC

Technology

Brandon Rhoten

VP, Digital

185

2013 Oldemark LLC

Increase profitable transactions

utilizing enabling technologies.

Enhance brand relevance

Operational improvements

1:1 marketing

186

1:1 MARKETING

Cheeseburger

Person ONLY

Salad Person

ONLY

Spicy Chicken gets

some love too!

31 MILLION UNIQUE REACH

The tech

190

191

Pay 1.0: active

193

Pay 2.0: CurrentC tests in process

194

195

Self Ordering 1.0: in test

197

Offers: wrapping market test

199

Ordering 1.0: local test

201

App 2.0: Ordering + Pay + Offers + more

Historically, we made

cheeseburgers…

not apps.

202

203

Waterfall

Maintenance

Test

Development

Requirement

204

Waterfall

Agile

Plan

Develop

Learn

Iterate

Maintenance

Test

Development

Requirement

Mobile Rollout Timeline

2014

2015

Pay 1.0

COLUMBUS SITES…

PHOENIX

Ordering 1.0

Offers Market Test

App 2.0

+ Pay + Offers

+ Ordering 2.0

DMA-by-DMA

Pay 2.0

(CurrentC)

PILOT

2016

208

Product Demonstration

Lori Estrada

Vice President

Culinary Development

210

lb. Fresh, Never Frozen

N.A. Beef

American

Cheese

House-Sliced Tomato &

Red

Onion

Pickles

Hand-leafed

Lettuce

211

Spicy

Chicken

Fillet

House-cooked Bacon

Natural Asiago Cheese

Ranch

House-sliced

Tomato

and

hand-leafed Lettuce

212

South American Grain Blend

•

Quinoa and Brown Rice

Grilled Chicken

Fire Roasted Pineapple

Spinach

Poblano Peppers

Black Beans

Feta

Agave

Cumin

Vinaigrette

213

LUNCH

Presentation will

resume at noon

214

2013 Oldemark LLC

Building the Brand

Emil Brolick

President and CEO

Sales and Profit

2013 Oldemark LLC

2013 Oldemark LLC

Brandon Solano

Chief Marketing Officer

2013 Oldemark LLC

“I never wanted Wendy’s to be

the biggest. I want Wendy’s

to be the best.”

Dave, Brand Builder Extraordinaire!

Dave

Always has been.

Always will be.

218

Foundation of

“Cut Above”

Brand Vision

1969

Dave CONNECTED in 1969

Frozen

Fresh

Tastes Best

220

Dave CONNECTED in 1969

Heat Lamps

Made-to-Order

221

Dave CONNECTED in 1969

Our Way

Custom Built

for You

222

223

Dave CONNECTED in 1969

Very Limited Menu

(Experts)

Heat

Lamps

Made

to Order

Movable

Tables &

Chairs

Cleared

Tables

Custom

Preparation

Playing a Different Game

Dave

“When they zig, we’ll zag,

when they zag, we’ll zig.”

It’s Our Brand DNA

225

More Complicated, More Competition

CONNECTING with Consumers…

Connecting…

Evolution, then Revolution

Source: Pew Research, June 2014

77M

1946-1964

65M

1965-1980

83M

1980-2002

226

Millennials always on!

The First Connected Generation

227

228

Millennials Food Quality Priorities Different

Food

Descriptor

Indices

Total

Restaurants

Source: The NPD Group / CREST®, YE Sep 2012; Lunch and Supper; 18-34 indexed to 50+ and vice versa, *Or other Diet Program

What’s Out

What’s In

What’s Out

Boomers

Millennials

Organic

Vegetarian

or Vegan

High

Protein

Gluten or

Wheat-Free

Whole

Grain

Locally

Sourced or

Grown

Natural

Low Fat or

Fat-Free

Weight

Watchers*

Healthy

Low Calorie

Low

Sodium

Heart

Healthy

Low or No

Cholesterol

Diabetic

Sugar-Free

Boomers

229

Millennials and Boomers Key to Growth

% Total QSR Traffic Share

Millennials

26%

34%

Period

ending

November

2014

Source:

The

NPD

Group

CREST

20%

11%

15%

20%

21%

13%

<18

18-24

25-34

35-49

50-64

65+

PEOPLE

5-Star Talent

PRICE

New QSR Quality

PRODUCT

Playing a Different Game

PROMOTION

Tactically Brilliant

PLACE

Brand Transformation

PERFORMANCE

Keeping Brand Promise

Recipe to Win

230

231

#marketingbuzz145

Video -

Promotion

232

Message

Media

Creative

233

2014 Marketing Calendar Driven By LTO’s

7 of 9 Events LTOs

Pretzel Bacon

Cheeseburger

Smoked Gouda

Chicken on Brioche

BBQ Pulled

Pork Trio

Bacon Portabella

Melt

Tuscan Chicken

on Ciabatta

Strawberry Fields

Salad

Ciabatta Bacon

Cheeseburger

Price -

Balance is Key

Media

Weight

234

2015 Balanced Across Core, LTO & Price/Value

235

Core

Price/Value

LTO

Applying 2014 Insights to 2015

236

Drive Passion for Our Core Menu

LTO's That Appeal To Boomers & Millennials

Build Beverages To Drive Traffic & Margins

237

Leadership Products In Core Categories

Asiago Ranch

Chicken Club

Baconator

BBQ Ranch

Chicken Salad

Wendy’s -

Strong Core Product Credentials

Other

Great Tasting

Hamburgers

Great Tasting Chicken

Sandwiches

Great Tasting Salads

Source:

Wendy’s

Brand

Health

Tracking

Consumers

Endorsing,

’14

(Top

Brands

Segment

Share)

238

Applying 2014 Insights to 2015

239

Drive Passion for Our Core Menu

Compelling Price/Value Offerings/Spending

LTO's That Appeal To Boomers & Millennials

Build Beverages To Drive Traffic & Margins

240

1 In 4 QSR Visits Are Driven By A “Deal”

74%

Non-Deal

26%

Deal

Past 8 Qs Dealing

Driving Growth

Source:

The

NPD

Group

CREST®,

Total

QSR:

Deal

Traffic

Share,

Excl.

Quarter

Ending

Sep’14

241

Consumers Choose “Deals”

That Are Right For Them

Source:

The

NPD

Group

CREST®,

Total

Hamburger

Category:

Deal

Traffic,

Excl.

MM-

Sept’14-

Incidence

(%),

*Total

chart

adds

107%

due

ability

multi-select

All Other

Discounted/

BOGO

Value Menu

Coupons

Combo/

Specials

16%

29%

25%

19%

18%

A Portfolio of Price / Value Messages

1:1 Targeted

Drive Off-Peak

Pillar or Layer

“Always On”

242

At Wendy’s, It’s Not What You Pay…

…It’s About What You GET

Applying 2014 Insights to 2015

244

Drive Passion for Our Core Menu

Compelling Price/Value Offerings/Spending

LTO's That Appeal To Boomers & Millennials

Build Beverages To Drive Traffic & Margins

245

LTO's That Appeal To Boomers & Millennials

Chef-Inspired

Healthy &

Wholesome

Simple, Honest

Ingredients

Applying 2014 Insights to 2015

246

Drive Passion for Our Core Menu

Compelling Price/Value Offerings/Spending

LTO's That Appeal To Boomers & Millennials

Build Beverages To Drive Traffic & Margins

247

Beverage Program Addresses Nearly 75% Of

Millennial Beverage Need States

Less Typical with Food

More Typical with Food

17%

43%

13%

10%

Source:

Coca-Cola

DINE

Study

2013

248

Great Progress In 2014

Extended

Leadership

Expanded

Penetration

Tested For

Growth

Strawberry Lemonade

Promotion

249

Message

Media

Creative

Engage Consumers When, Where & How They Want to Engage

250

251

252

Video -

#barbecue4merica

Integrated Marketing Maximizes Reach

253

23%

TV Only

50%

TV & Digital

19%

Digital

Only

= 92%

Reach

Recent Successful LTO

XCR

–

A18-34

Unique

Reach,

Integrated Marketing Maximizes Recall & Purchase Intent

TV only

TV +

Digital

TV +

Engaged

on Digital

254

Ad Recall

+9%

+29%

Total Communication Awareness at Multi-Year High

+9 pts

vs 2011

Wendy’s

Brand

Tracking

YTD

9/14

255

2011

2012

2013

2014

Promotion

256

Message

Media

Creative

257

258

Video –

red sizzle reel

259

Video –

Bacon & Blue GM :30

Advertising

Awareness

–

2014

Other

Outsmarting vs Outspending

Wendy’s Brand Tracking

260

261

Being the Best Wendy’s We Can Be

Engage Consumers with proven 360

marketing

More balanced messaging & spending

Leverage Digital, Social, Loyalty…One-on-One Relevance

Continue leading QSR food and beverage innovation

Raise our game in Price / Value

Building on our legacy of “Cut Above”

Quality

Continue to evolve our successful advertising

2013 Oldemark LLC

Darrell van Ligten

President, International

263

International Today

403

Restaurants

Countries*

$1.4MM

AUVs

*Includes US Territories

264

Brand Resonates in Markets Similar to US

$1.9MM

AUVs

36%

Restaurants

68%

Revenue

Caribbean

265

However, Growth Opportunities Limited

NON-TRADITIONAL ASSETS

NON-TRADITIONAL SITES

266

Consumer Model Evolution

•

US Designs

•

US Menu/LTOs

•

US Portion Sizes

•

US Value Menu

•

International Designs

•

Unique Asset Types

•

Localized Menu/LTOs

•

Localized Portion Sizes

•

Localized Value Offerings

2009

Future

267

Our Roadmap

268

269

270

271

272

273

274

Adding Proof Points Around World

275

Wendy’s Users Understand Our Brand

SOURCE: Wendy’s User Perception Study

Image

Association:

Wendy’s

vs.

Key

Competitors

Philippines

Attributes where…

Leading US HQSR Brand

Leading Local QSR Brand

Wendy’s rates higher

than competitor

Wendy’s has largest

gap vs. competitor

•

They offer a variety of healthy choices.

•

The food is real, not processed.

•

They offer something different to other fast

food restaurants.

•

They offer a variety of healthy choices.

•

The food is real, not processed.

•

They freshly prepare the food when you

order it.

Wendy’s lags

competitor

•

They have a range of affordable prices.

•

They cost more than other fast food places.

•

They have a range of affordable prices.

•

They cost more than other fast food places.

276

Wendy’s Users Understand Our Brand

SOURCE: Wendy’s User Perception Study

Image

Association:

Wendy’s

vs.

Key

Competitors

Georgia

Attributes where…

Leading US HQSR Brand

Wendy’s rates higher

than competitor

Wendy’s has largest

gap vs. competitor

•

They offer something different to other fast

food restaurants.

•

They have wholesome food you feel good

about eating.

•

It is a place my friends like to go to.

•

They freshly prepare the food when you

order it.

Wendy’s lags

competitor

•

They cost more than other fast food places.

•

They cost more than other fast food places.

It is a place I’d recommend to others.

277

5-Year Progress

Countries

+38%

Restaurants

+51%

System Sales

278

Key Insights from Study

•

Concentrate resources on fewer, key markets rather than “plant the flag”

in many, scattered markets.

•

Customize to meet local preferences, but maintain core offering.

•

Commit resources to chosen markets, balancing risk and capital.

279

Go Forward Strategy

Segment franchise

markets and restructure

field teams to most

efficiently focus G&A

and time investment on

the highest revenue

opportunities.

Create separate,

dedicated team to go

“narrow and deep”

in a

small number of high

potential markets.

Further differentiate

Wendy’s from

competitive reference

points via a QSR Plus+

experience that brings

our “A Cut Above”

brand

positioning to life.

280

Go Forward Strategy

Segment franchise

markets and restructure

field teams to most

efficiently focus G&A

and time investment on

the highest revenue

opportunities.

Create separate,

dedicated team to go

“narrow and deep”

in a

small number of high

potential markets.

Further differentiate

Wendy’s from

competitive reference

points via a QSR Plus+

experience that brings

our “A Cut Above”

brand

positioning to life.

281

Market Segmentation

High potential market(s)

meeting key criteria

Current source of revenue

Future source of revenue

Modest source of revenue

EXISTING

ADJACENT

NEW

SUSTAINING

ACCELERATING

MINOR

JOINT

VENTURE

•

South America

•

Eastern Europe

•

Middle East

282

Accelerating Markets Example

•

Growing source of

revenue

•

Higher AUVs

•

Higher royalty rate

•

Higher development

potential

Menu adaptation/optimization

Café

program

Locally relevant value programs

Leverage US marketing calendar

Regional/Local LTOs

Premium/Value pillar mix

Growth accelerators, e.g. build-to-flip

Financial incentives

QSR Plus+

International Service Initiative

VOC, User Perception Study

WEN resources in region

Franchisee growth capabilities

283

Go Forward Strategy

Create separate,

dedicated team to go

“narrow and deep”

in a

small number of high

potential markets.

Further differentiate

Wendy’s from

competitive reference

points via a QSR Plus+

experience that brings

our “A Cut Above”

brand

positioning

life.

Segment franchise

markets and restructure

field teams to most

efficiently focus G&A

and time investment on

the highest revenue

opportunities.

284

Dedicated Key Market Team

Vice President,

Key Markets

Vice President,

MD AP/EMEA

Vice President,

MD LAC

Caribbean

South America

Central America

India

Middle East

Brazil

Japan

Asia Pacific

EMEA

285

Go Forward Strategy

Segment franchise

markets and restructure

field teams to most

efficiently focus G&A

and time investment on

the highest revenue

opportunities.

Create separate,

dedicated team to go

“narrow and deep”

in a

small number of high

potential markets.

Further differentiate

Wendy’s from

competitive reference

points via a QSR Plus+

experience that brings

our “A Cut Above”

brand positioning to life.

OUR GOAL

Become the preferred QSR brand

by creating QSR Plus+;

a category disrupting experience

that yields a “customer epiphany.”

286

287

Our Research Indicates White Space

Reference Points

e.g. Better Burger Places

QSR

288

Brazil Example

289

Creating The QSR Plus+ Experience

QUEUE

TO ORDER

ENTER

RESTAURANT

EXPLORE

ORDER

MEAL

WAIT

FOR MEAL

RECEIVE

MEAL

EAT

MEAL

EXIT

RESTAURANT

GO BEYOND!

Hospitality

International IA

Layout/flow

Separate Café

area

Hostess

Uniforms

No serpentine

No counter

Order point away from

kitchen

Plan for self-order

No traditional

menuboard

Kiosk used to

merchandise

Laminated menus

POP lite

Hostess as guide

Kiosk

Table

No combos

Menu tiers

Build your own

“Make it a double/triple”

Mobile ordering

Self-serve drinks

Take-out zone

Wait at table

Table locator

technology

Served on plates

Server tray

Beverages served to

table

Beverages in glasses

Take-out packaging

Brought to table

Portion sizes

Sandwich builds

Local flavors

Local items

Premium cut option

Differentiated standard

bun

Local salad ingredients

Premium mayo, sauces

served in bowls, bottled

Heinz ketchup

Table condiments

Frosty toppings

Adult beverages

Targeted pricing

Table cleared

Hostess thank you

290

Positive Consumer Response

•

Quite different from what we’re used to seeing in MD or BK.

•

This is a great place with good price, I’m concerned with the line.

•

Feels like a hamburgueria but more accessible.

•

It’s too good to be true…it’s probably going to have huge lines.

291

Recap

•

Recipe to Win is our roadmap.

•

Strict segmentation and prioritization of franchisee markets.

•

Brand proof points around world.

•

Dedicated team to pursue a small number of key markets.

•

Global

brand

proposition

–

QSR

Plus+.

292

Q&A

e-mail questions to: David.Poplar@wendys.com

Appendix

2014

2013

2014

2013

Adjusted EBITDA from continuing operations

107,055

89,011

392,746

367,133

(Less) plus:

Pension withdrawal expense in cost of sales

(13,500)

Depreciation and amortization

(41,563)

(47,518)

(159,353)

(182,359)

Facilities action charges (income), net

(6,530)

20,834

29,100

(10,856)

Impairment of long-lived assets

(7,245)

(10,552)

(10,985)

(15,879)

Impairment of goodwill

(9,397)

Operating profit

51,717

28,878

251,508

135,142

Interest expense

(12,864)

(13,464)

(52,192)

(69,012)

Loss on early extinguishment of debt

(7,544)

(28,563)

Investment income, net

21,202

1,199

23,565

Other income (expense), net

177

233

754

(2,080)

Income from continuing operations before income taxes and

noncontrolling interests

39,053

29,305

201,269

59,052

(Provision for) benefit from income taxes

(15,759)

3,620

(79,835)

(14,154)

Income from continuing operations

23,294

32,925

121,434

44,898

Net loss from discontinued operations

(266)

Net income

23,294

32,659

121,434

44,632

Net loss attributable to noncontrolling interests

410

855

Net income attributable to The Wendy's Company

23,294

33,069

121,434

45,487

Three Months

Twelve Months

Reconciliation of Adjusted EBITDA from Continuing Operations

to Net Income Attributable to The Wendy's Company

(In Thousands)

(Unaudited)

Per share

Adjusted income and adjusted earnings per share from continuing operations

36,952

0.10

44,082

0.11

(Less) plus:

Facilities action charges (income), net

(7,242)

(0.02)

11,555

0.03

Impairment of long-lived assets

(4,470)

(0.01)

(6,567)

(0.02)

Depreciation of assets that will be replaced as part of the Image Activation initiative

(1,946)

(0.01)

(8,510)

(0.02)

Impairment of goodwill

(9,207)

(0.02)

Pension withdrawal expense in cost of sales

(8,286)

(0.02)

Loss on early extinguishment of debt

(4,692)

(0.01)

Dividend from Arby's

14,550

0.03

Total adjustments

(13,658)

(0.04)

(11,157)

(0.03)

Income from continuing operations

23,294

0.06

32,925

0.08

Net loss from discontinued operations

(266)

(0.00)

Net income

23,294

0.06

32,659

0.08

Net loss attributable to noncontrolling interests

410

0.00

Net income and diluted earnings per share attributable to The Wendy's Company

23,294

0.06

33,069

0.08

Per share

Adjusted income and adjusted earnings per share from continuing operations

127,035

0.34

119,215

0.30

(Less) plus:

Depreciation of assets that will be replaced as part of the Image Activation initiative

(11,940)

(0.03)

(23,822)

(0.06)

Impairment of long-lived assets

(6,778)

(0.02)

(9,899)

(0.02)

Facilities action (income) charges, net

12,996

0.03

(19,321)

(0.05)

Gain (loss) on sale of investment, net

121

0.00

(503)

(0.00)

Loss on early extinguishment of debt

(17,829)

(0.05)

Impairment of goodwill

(9,207)

(0.02)

Pension withdrawal expense in cost of sales

(8,286)

(0.02)

Dividend from Arby's

14,550

0.03

Total adjustments

(5,601)

(0.02)

(74,317)

(0.19)

Income from continuing operations

121,434

0.32

44,898

0.11

Net loss from discontinued operations

(266)

(0.00)

Net income

121,434

0.32

44,632

0.11

Net loss attributable to noncontrolling interests

855

0.00

Net income and diluted earnings per share attributable to The Wendy's Company

121,434

0.32

45,487

0.11

Twelve Months

2014

2013

2014

2013

Reconciliation of Adjusted Income and Adjusted Earnings Per Share from Continuing Operations

to Net Income and Diluted Earnings Per Share Attributable to The Wendy's Company

(In Thousands Except Per Share Amounts)

(Unaudited)

Three Months