Slide 1: Second-Quarter 2015 Conference Call
© 2015 Quality Is Our Recipe, LLC Second-Quarter 2015 Conference Call Exhibit 99.1 August 5, 2015
Slide 2: David Poplar, Vice President Investor Relations
© 2015 Quality Is Our Recipe, LLC DAVID POPLAR 2 Vice President Investor Relations
Slide 3: Today's Agenda
Today’s Agenda CEO Overview Emil Brolick Financial Update Todd Penegor Q&A
Slide 4: Emil Brolick, President & CEO
© 2015 Quality Is Our Recipe, LLC EMIL BROLICK 5 President & CEO
Slide 5: Second quarter highlights: margin, EBITDA, SRS, ASR
© 2015 Quality Is Our Recipe, LLC NA COMPANY-OPERATED RESTAURANT MARGIN INCREASES 40 BPS TO 18.2% IMPROVEMENT OF 170 BPS IN ADJ. EBITDA MARGIN* TO 21.3% ADJ. EBITDA* UP 5.2% DESPITE SALE OF 141 COMPANY RESTAURANTS COMPANY INTENDS TO ENTER INTO ~$165 MILLION ASR TRANSACTION NA SYSTEMWIDE SRS INCREASE
Slide 6: 2015 Balanced Across Core, LTO & Price/Value
2015 Balanced Across Core, LTO & Price/Value LTO Price/Value Core
Slide 7: 2015 Product Successes to Date
2015 Product Successes to Date
Slide 8: Wendy's: New QSR Quality, QSR Price
HIGH LOW FUNCTIONAL EMOTIONAL Wendy’s: New QSR Quality, QSR Price 9 EXPERIENCE A B C New QSR Traditional QSR
Slide 9: How We Grow
HOW WE GROW BRAND RELEVANCE + ECONOMIC RELEVANCE = GROWTH Financial Management System Optimization New Restaurant Growth Image / Experience Activation North America Same-Restaurant Sales Growth Shareholder Value-Enhancing Initiatives Core Organic Growth Strategies Global Growth Restaurant Utilizatio
Slide 10: System Optimization – Quality of Earnings Evolution
System Optimization – Quality of Earnings Evolution 50% 50% 80% 20% Rent & Royalties Company Restaurants 2012 (A) ~23% Co. Ownership 2017 (E) ~5% Co. Ownership
Slide 11: Confident in Long-Term Outlook
Confident in Long-Term Outlook Cut Above Brand Positioning Recipe to Win Energized Franchisees Committed to Growth Strong Company & Restaurant Economic Models
Slide 12: Todd Penegor, Chief Financial Officer
© 2015 Quality Is Our Recipe, LLC TODD PENEGOR 13 Chief Financial Officer
Slide 13: Second Quarter Financial Highlights
Second Quarter Financial Highlights N.A. Systemwide SRS 2.2% 3.2% 2-Year 5.4% N.A. Company SRS 2.4% 3.9% 2-Year 6.3% N.A. Co. Rest. Margin 18.2% 17.8% +40 bps G&A $60.8 $66.4 8.4% Adjusted EBITDA* $104.3 $99.1 5.2% Adjusted EBITDA Margin* 21.3% 19.6% +170 bps Adjusted EPS* $0.08 $0.09 -11.1% $ Mils
Slide 14: Q2 2015 vs. Q2 2014: Adjusted EBITDA Improved
Q2 2015 vs. Q2 2014: Adjusted EBITDA Improved Quality of Earnings: Adjusted EBITDA Margin Growth of 170 BPS * The Company has provided quarterly reclassified 2014 statements of operations on its website to conform to its current-year presentation. ** Due to the recent sale of its bakery business, th
Slide 15: 2015 Image Activation On Track
2015 Image Activation On Track Total System Annual Reimages & New Builds Total System Cumulative Reimages & New Builds 450 Reimages 80 New 10 64 234 486 530 10 74 308 794 1,324 2011A 2012A 2013A 2014A 2015E 2011A 2012A 2013A 2014A 2015E
Slide 16: System Optimization Update
System Optimization Update Canada System Optimization • Sold remaining restaurants during 2Q • Commitment to build more than 60 new restaurants in Canada • Reinvestment of proceeds in Canadian Build-to-Suit program U.S. System Optimization • Plan to sell an additional 540 restaurants: 280 in 2015 an
Slide 17: Rental Revenue Evolution – Expect $100M Growth
Rental Revenue Evolution – Expect $100M Growth Owned Properties Leased Properties $21 $47 $100 $70 Total = $68M 2014* (A) 2017 (E) Total = $170M By 2017 expect to monetize ~70% of our owned real estate properties * 2014 actuals exclude ~$1M of rental revenue related to the Bakery business $ millions
Slide 18: Share Repurchase Update
Share Repurchase Update • Successfully completed $850 million share repurchase • Announced today plans to enter in to an Accelerated Share Repurchase Transaction for approximately $165 million • Expect to utilize remaining $400 million authorization by end of 2016 Company previously announced $1.4 b
Slide 19: 2015 Outlook
2015 Outlook • Reaffirming • G&A expense of approximately $250 million • Capital expenditures of approximately $240 to $250 million • Depreciation and amortization to be approximately flat to prior year • Revising • Company-operated SRS growth of 2.0-2.5 percent • Company-operated restaurant margin
Slide 20: 2020 Goals
2020 Goals $2MM 20% 1.3x+ 1,000 60% BRAND RELEVANCE ECONOMIC MODEL RELEVANCE AUVs Restaurant Margins Sales to Investment Ratio New NA Restaurants Total Reimaged NA Restaurants Achievement requires two growth drivers:
Slide 21: David Poplar, Investor Relations
© 2015 Quality Is Our Recipe, LLC DAVID POPLAR 22 Vice President Investor Relations (614) 764-3311 david.poplar@wendys.com
Slide 22: 2015 Investor Relations Calendar: Key Dates
2015 Investor Relations Calendar: Key Dates September 10 CL King (NYC) Conference October 15 Image Activation Market Visit with Goldman Sachs (Dublin) November 4 3Q Earnings Release November 18 Morgan Stanley Conference December 9 Wedbush Conference
Slide 23: Q&A
Q&A
Slide 24: Appendix
Appendix
Slide 25: Reconciliation of Adjusted EBITDA from Continuing Operations to Net Income
Reconciliation of Adjusted EBITDA from Continuing Operations to Net Income Adjusted EBITDA from continuing operations 104,286 $ 99,102 $ 185,097 $ 171,219 $ (Less) plus: Depreciation and amortization (39,335) (37,998) (74,880) (78,578) System optimization gains, net 15,654 1,418 14,849 74,395 Reorga
Slide 26: Reconciliation of Adjusted Income and Adjusted EPS
Reconciliation of Adjusted Income and Adjusted Earnings Per Share from Continuing Operations to Net Income and Diluted Earnings Per Share Per share Per share Adjusted income and adjusted earnings per share from continuing operations 28,701 $ 0.08 $ 31,952 $ 0.09 $ (Less) plus: Impairment of long-liv
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