 © 2016 Quality Is Our Recipe, LLC November 9, 2016 Third-Quarter 2016 Conference Call Exhibit 99.1 |
 Group
Manager – Investor Relations
Peter Koumas 2 |
 Today’s Agenda CEO Overview Todd Penegor Financial Update Gunther Plosch Key Initiatives Update Todd Penegor Q&A 3 |
 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 November 9,
2016 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
(i.e., adjusted EBITDA, adjusted EBITDA margin, adjusted earnings per share, adjusted tax rate and free cash flow). These non-GAAP financial measures exclude certain expenses and 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 November 9, 2016 and posted on www.aboutwendys.com.
As used in this presentation, the terms adjusted EBITDA and adjusted
earnings per share refer to adjusted EBITDA from continuing
operations and adjusted earnings per share from continuing operations, respectively. 4 |
 President and Chief Executive Officer Todd Penegor 5 |
 © 2015 Quality Is Our Recipe, LLC IMPROVEMENT OF 600 BPS IN ADJ. EBITDA MARGIN TO 27.5%* 6 COMPANY INTENDS TO ENTER INTO $150 MILLION ASR TRANSACTION; INCREASES DIVIDEND BY ~8% COMPANY INCREASES 2016 ADJ. EPS AND ADJ. EBITDA GUIDANCE* * See reconciliation of non-GAAP financial measures in the Appendix. IMAGE ACTIVATION MOMENTUM ACCELERATING NA SYSTEM SRS INCREASE 1.4%, 4.5% ON A TWO-YEAR BASIS; 15 CONSECUTIVE QUARTER OF POSITIVE SRS th |
 Balance
Across the Menu 7
CORE PRICE-VALUE LTOs |
 Strong Q3
Promotional Calendar 8
|
 Strong
N.A. System SRS Acceleration 9
6.8% 2.6% 4.5% Q1 Q2 Q3 2016 2015 3.2% 2.2% 3.1% 3.6% 0.4% 1.4% |
 Customer
Counts Driving Growth 10
QSR Hamburger
Wendy’s
Check
Customer Counts
Check Customer Counts |
 Customers
Are Noticing the Stronger Wendy’s Source:
Wendy’s Brand Health Tracking, Q3 2016 vs.Q3 2015
11 High Quality Food Worth What You Pay +16% +7% |
 12 |
 Chief
Financial Officer Gunther Plosch
13 |
 N.A. System SRS 1.4% 3.1% 2-Year 4.5% N.A. Co. Rest. Margin 18.4% 18.8% (40) bps G&A $58.9 $63.7 7.5% Adjusted EBITDA** $100.2 $99.7 0.5% Adjusted EBITDA Margin** 27.5% 21.5% +600 bps Adjusted EPS** $0.11 $0.09 22.2% $ Mils (except per share amounts) Third Quarter Financial Highlights 2016* 2015* B/(W) ** See reconciliation of non-GAAP financial measures in the Appendix. (Unaudited) 14 * Due to the May 2015 sale of its bakery business, the Company has presented its bakery results as discontinued operations in its financial statements. |
 $100 $100 $24 $2 ($26) Q3 2015 Royalties, Franchise Fees & Net Rental Income Other Disposed Restaurant EBITDA (Sys Op) Q3 2016 Q3 2016 vs. Q3 2015: Adjusted EBITDA 433 Fewer Company Restaurants (Unaudited) $ in millions 15 |
 Q3 2016 vs. Q3 2015: Adjusted EPS (Unaudited) 16 $0.09 $0.11 $0.01 $0.01 Q3 2015 Share Repurchases Depreciation Q3 2016 |
 Returning
Cash to Shareholders •Repurchased ~18M shares for ~$185 million YTD •Announced intent to enter into an Accelerated Share Repurchase Transaction for $150 million •Announced ~8-percent increase in quarterly dividend rate, from
6 cents per share to 6.5 cents per share
•5
consecutive year of increasing the dividend 17 th |
 2016
Outlook •
Revising • NA System SRS of ~1.5% • Cash flows from operations of ~$180 to $200 million • Capital expenditures of ~$145 million • Free cash flow (cash flows from operations minus CAPEX) of ~$35 to $55 million
• Reaffirming • Commodity costs to decrease ~5 to 6% • Company-operated restaurant margin of ~19.0% • G&A expense of ~$245 to $250 million • Adjusted tax rate of ~32 to 34% COMPANY NOW EXPECTS ADJ. EPS OF $0.40 TO $0.41 AND
ADJ. EBITDA AT HIGH END OF PREVIOUSLY ISSUED RANGE
18 * * See reconciliation of non-GAAP financial measures in the Appendix. |
 President and Chief Executive Officer Todd Penegor 19 |
 System
Optimization Update System
Optimization III
• On track to complete by the end of 2016 • 156 restaurants sold in Q3, 211 sold YTD • Expect ~315 restaurants to be sold in 2016 • Expect total pre-tax proceeds of ~$435M Ongoing System Optimization • Facilitated 18 franchisee-to-franchisee transfers via “Buy and Flip” in Q3 • 144 “Buy and Flips” YTD • Expect ~200 restaurants to be transferred via “Buy and Flip” in 2016 20 |
 Image
Activation Momentum Accelerates Total System
Annual Reimages & New Builds*
Total System Cumulative
Reimages & New Builds*
~28% of NA
system Image
Activated at the
end of Q3 2016
* Counts include Franchise Reimages open or under construction
21 |
 2020
North America System Goals Are On Track! $2M
20% 1.3x 1,000 AUVs Restaurant Margins Sales to Investment Ratio New Restaurants 60% Total Reimaged Restaurants + (~500 Net) 22 2020 Company Goal: 38-40% Adjusted EBITDA Margin _ > |
 Group
Manager – Investor Relations
Peter Koumas 23 |
 2016
Investor Relations Calendar: Key Dates November
15 Morgan Stanley Consumer & Retail Conference (New
York) December 9
Bernstein NDR (New York)
February 16
Preliminary Q4 Earnings Release & 2017 Investor Day
(Dublin)
24 |
 25 Q&A |
 Appendix 26 |
 In addition to the GAAP financial measures included in this presentation, the Company has included certain non-GAAP financial
measures (i.e., adjusted EBITDA, adjusted EBITDA margin,
adjusted earnings per share, adjusted tax rate and free cash flow). These non-GAAP financial measures exclude certain expenses and benefits as detailed in the accompanying reconciliation
tables.
This presentation also includes forward-looking guidance for certain
non-GAAP financial measures including adjusted EBITDA,
adjusted earnings per share and adjusted tax rate. The Company excludes
certain expenses and benefits from adjusted EBITDA, adjusted
earnings per share and adjusted tax rate, such as impairment of long-lived assets, reorganization and realignment costs and system optimization gains, net. Due to the uncertainty and variability of the nature and amount of certain future
expenses and benefits related to our system optimization
initiative, the Company is unable without unreasonable effort to provide projections of net income, earnings per share or reported tax rate or a reconciliation of projected adjusted EBITDA,
adjusted earnings per share or adjusted tax rate to
projected net income, earnings per share or reported tax rate.
Reconciliation of Non-GAAP Financial Measures
27 |
 Reconciliation of Net Income to Adjusted EBITDA from Continuing Operations In Thousands (Unaudited) 28 |
 Reconciliation of Income and Diluted Earnings Per Share from Continuing Operations to
Adjusted Income and Adjusted Earnings Per Share from Continuing
Operations In Thousands except per share amounts
(Unaudited)
29 |
 30 |