Wendy's Company (the) · NASDAQ:WEN
Wendy's Company (the) — Investor Day (June 2012)
54 slides from Wendy's Company (the)'s investor day presentation, Jun 28, 2012
Slide 1: Emil Brolick, President and Chief Executive Officer
Exhibit 99.3 EMIL BROLICK PRESIDENT AND CHIEF EXECUTIVE OFFICER
Slide 2: Growing Our Brand, Sales & Profits
GROWING OUR BRAND, SALES & PROFITS
Slide 3: Our Focus
The Wendy’s Company OUR FOCUS VISION “A Cut Above” STRATEGY “Recipe to Win” PEOPLE 5-Star Athletes DEFINE REALITY Consumer-Centric…Outside-In Thinking EXECUTION Growth Platforms
Slide 4: Making Important Progress
MAKING IMPORTANT PROGRESS Sales Improving Q2 Estimated Same-Store Sales Growth +3.0%* Five Consecutive Quarters of Same-Store Sales Growth Outlook Reaffirmed Adjusted EBITDA $320-$335 million** Long-term high single digit/low double digit adjusted EBITDA Image Activation on target in 2012, accelerat
Slide 5: Making Important Progress: 2012 ACSI Customer Satisfaction Index
MAKING IMPORTANT PROGRESS 2012 ACSI Customer Satisfaction Index
Slide 6: North America Same-Store Sales Growth
North America Same-Store Sales Growth
Slide 7: Image / Experience Activation
Image / Experience Activation Image / Experience Activation
Slide 8: Growth platforms overview
SUaAldd HLMOYD JIDALVULS WYAL-INOT S.AGNIM
Slide 9: Restaurant Utilization & Daypart Expansion
Restaurant Utilization & Daypart Expansion
Slide 10: Financial Management
F inancial Management F inancial Management
Slide 11: System Optimization
System Optimization System Optimization
Slide 12: Restaurant Ownership Optimization
The Wendy’s Company RESTAURANT OWNERSHIP OPTIMIZATION Consistent EBITDA/EPS Growth Anticipate Average Franchisee Size to Increase Geographical Ownership Optimized Company & Franchise G&A highly efficient Operations execution enhanced High accountability of brand performance Image Activation is accel
Slide 13: Growth platforms overview
SUaAldd HLMOYD JIDALVULS WYAL-INOT S.AGNIM
Slide 14: Growth Platforms
System Optimization Financial Management Global Growth Image / Experience Activation North America Same-Store Sales Growth System Optimization Financial Management Restaurant Utilization & Daypart Expansion Global Growth New Restaurant Development Image / Experience Activation North America Same-Sto
Slide 15: Wendy's Tomorrow
WENDY’S TOMORROW HIGH LOW FUNCTIONAL EMOTIONAL
Slide 16: Recipe to Win
RECIPE TO WIN PEOPLE PEOPLE 5-Star Athletes 5-Star Athletes PRICE PRICE New QSR Quality at QSR Price New QSR Quality at QSR Price PRODUCT PRODUCT Play a different game. Superior Play a different game. Superior perceived quality, competitive price. perceived quality, competitive price. PROMOTION PROM
Slide 17: Customer comments
My first time back in years. This is good. Make every Wendy’s like this. The people are awesome. I am a regular customer at this location and I really like the service that I receive there. The staff is very friendly and efficient. The recent renovation to the restaurant has made it much more pleasa
Slide 18: Recipe to Win
RECIPE TO WIN PEOPLE PEOPLE 5-Star Athletes 5-Star Athletes PRICE PRICE New QSR Quality at QSR Price New QSR Quality at QSR Price PRODUCT PRODUCT Play a different game. Superior Play a different game. Superior perceived quality, competitive price. perceived quality, competitive price. PROMOTION PROM
Slide 19: New QSR Quality at QSR Price
New QSR Quality at QSR Price $5.06 Wendy’s Average Eater Check Year End April 2012 $7.01 Total Fast Casual +39% $7.35 Leading Fast Casual Hamburger +45% $7.18 Leading Fast Casual Mexican +42% Source: The NPD Group / CREST
Slide 20: Size of Market Shrinks as Check Increases
Size of Market Shrinks as Check Increases 23% < $3.00 32% $3.00-$4.99 28% $5.00-$6.99 17% $7.00 > 83% of Occasions <$7 23% < $3.00 32% $3.00-$4.99 28% $5.00-$6.99 17% $7.00 > Source: The NPD Group / CREST
Slide 21: Recipe to Win
RECIPE TO WIN PEOPLE 5-Star Athletes 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 Reliable & predictable every time
Slide 22: Play a Different Game
The Wendy’s Company Play a Different Game HIGHEST PERCEIVED QUALITY…CORE DESTINATION… ONLY AT WENDY’S LTO… SPECIAL TASTE
Slide 23: Recipe to Win
RECIPE TO WIN PEOPLE 5-Star Athletes 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 Reliable & predictable every time
Slide 24: Recipe to Win
RECIPE TO WIN PEOPLE 5-Star Athletes 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 Reliable & predictable every time
Slide 25: Ultra modern restaurant image
The Wendy’s Company INSERT ULTRA MODERN IMAGE
Slide 26: Recipe to Win
RECIPE TO WIN PEOPLE 5-Star Athletes 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 Reliable & predictable every time
Slide 27: North America Same-Store Sales Growth
North America Same-Store Sales Growth North America Same-Store Sales Growth
Slide 28: A reliable and predictable experience every time!
A reliable and predictable experience every time!
Slide 29: Store Operations Evaluation Inspections
Store Operations Evaluation Inspections C B A North America Company restaurants
Slide 30: CPR Scores Improving
CPR SCORES IMPROVING Complaints, Problems & Revisit Intent “Consumer Data” North America Company restaurants
Slide 31: Slide 31
Slide 32: CPR Scores by Length of My Wendy's Implementation
CPR Scores by Length of My Wendy’s Implementation* TM Months on My Wendy’s * Based on data from more than 3,000 restaurants over a 2-year period via Wendy’s “Voice of Customer” program
Slide 33: Every +10 pts. = $46,000 Annual Restaurant Sales
Every +10 pts. = $46,000 Annual Restaurant Sales CPR Scores by Length of My Wendy’s Implementation* TM Months on My Wendy’s * Based on data from more than 3,000 restaurants over a 2-year period via Wendy’s “Voice of Customer” program
Slide 34: "A Cut Above" Customer Experience Performance
“A CUT ABOVE” Customer Experience PERFORMANCE People 5-Star Athletes High Standards Systems Closed Loop Feedback Measurement Technology Equipment Facilities
Slide 35: Restaurant Utilization & Daypart Expansion
Restaurant Utilization & Daypart Expansion
Slide 36: Breakfast Accounts for Almost 1 Out of 4 Transactions in QSR
BREAKFAST ACCOUNTS FOR ALMOST 1 OUT OF 4 TRANSACTIONS IN QSR 7% Evening Snack 22% Morning Meal 34% Lunch 10% Afternoon Snack 27% Supper Total QSR Traffic Distribution by Daypart: Year Ended April 2012 Source: The NPD Group / CREST
Slide 37: Only Breakfast Has Generated Traffic Growth
ONLY BREAKFAST HAS GENERATED TRAFFIC GROWTH 2007 vs. 2012 2012 PCYA vs. 2007 Traffic Source: The NPD Group / CREST
Slide 38: QSR Traffic Distribution by Clock Time
QSR Traffic Distribution by Clock Time Year End November 2011 Source: The NPD Group / CREST
Slide 39: Fastest Growing QSR Categories in Breakfast Are Non-Traditional
Fastest Growing QSR Categories in Breakfast Are “Non-Traditional” QSR Morning Meal Traffic Change (000) YE February 2012 vs. 2009 (3 Year Trend) Traffic Share Index % Change 3 Years Ago 14% -9% 7% 14% 1% 14% 2% 11% 0% -6% -13% Source: The NPD Group / CREST
Slide 40: Hamburger Category Morning Meal Traffic Change
HAMBURGER CATEGORY MORNING MEAL TRAFFIC CHANGE Traffic Share Index % Change 3 Years Ago 8% 0% -1% -8% -11% -17% -- -15% -- -11% Hamburger Category Morning Meal Traffic (000) YE February 2012 vs. 2009 (3 Year Trend) Source: The NPD Group / CREST
Slide 41: The Wendy's Company
The Wendy’s Company
Slide 42: The Wendy's Company
The Wendy’s Company
Slide 43: 75% of QSR Visits Before AM Occur After AM
75% of QSR Visits Before 11 AM Occur After 8 AM QSR Traffic by Hour Source: The NPD Group / CREST
Slide 44: Breakfast Dynamics
The Wendy’s Company BREAKFAST DYNAMICS Last large QSR to enter A.M. meal...must differentiate Consumers quite happy with existing options…must play a different game Economics of Breakfast must take priority Breakfast offering must create an economic opportunity for vast majority of system Committed
Slide 45: Growth platforms overview
SUaAldd HLMOYD JIDALVULS WYAL-INOT S.AGNIM
Slide 46: The Opportunity Today
THE OPPORTUNITY TODAY NORTH AMERICA 6,244 Restaurants and Growing
Slide 47: North America: The Opportunity Tomorrow
+ NORTH AMERICA THE OPPORTUNITY TOMORROW
Slide 48: Strengthen Core of Markets
Strengthen Core of 26 Markets The Wendy’s Company 2011 International AUVs … $1.3 million SSS Growth … 2011 +4.3% … 2012 YTD +3.3% System Sales … +$90 million vs. January 2011
Slide 49: International Success Model
INTERNATIONAL SUCCESS MODEL The Wendy’s Company 1. Right Franchisee/JV Partner 2. Proof of Consumer Proposition 3. Proof of Economic Model 4. GROW IT!
Slide 50: Restaurants and 2011 AUVs
restaurants restaurants 2011 AUVs $4.0 mil 2011 AUVs $4.0 mil
Slide 51: Restaurants and 2011 AUVs
restaurants restaurants 2011 AUVs $1.9 mil 2011 AUVs $1.9 mil
Slide 52: Potential Restaurant Development: Existing Markets
Potential Restaurant Development: Existing Markets
Slide 53: Plan: Double International by End of 2016
PLAN: Double International by End of 2016 2X 700+ 2016 TODAY # of restaurants
Slide 54: Conclusions
The Wendy’s Company CONCLUSIONS Clear Brand Direction – “A Cut Above” Clear Strategies to Activate – “Recipe to Win” Growth Platforms to Deliver Outlook in 2012 and Beyond Building Team of 5-Star Athletes Strong Franchise Partnership