Slide 1: Fourth Quarter 2012 Earnings Conference Call
Fourth Quarter 2012 Earnings Conference Call February 28, 2013 Exhibit 99.1 © 2013 Oldemark LLC
Slide 2: John Barker, Chief Communications Officer
© 2013 Oldemark LLC JOHN BARKER 2 Chief Communications Officer
Slide 3: Today's Agenda
Today’s Agenda Opening Comments Emil Brolick Financial Update Steve Hare CEO Overview Emil Brolick Q&A
Slide 4: Emil Brolick, President & CEO
EMIL BROLICK 5 © 2013 Oldemark LLC President & CEO
Slide 5: 2012 and Fourth-Quarter Highlights
2012 and Fourth-Quarter Highlights Doubled Quarterly Dividend Rate in Q4 2012: $0.04 per share FY Adjusted EBITDA* $333.3 mil vs. $331.1 mil Q4 Adjusted EBITDA* $ 95.9 mil vs. $ 80.9 mil FY Adjusted EPS* $0.17 vs. $0.15 FY SSS 1.6% vs. 2.0% Q4 SSS (0.2)% vs. 5.1% *See reconciliation of Adjusted EBIT
Slide 6: Core Organic Growth Strategies and Shareholder Value Initiatives
Image / Experience Activation Restaurant Ownership Optimization Financial Management Global Growth New Restaurant Development North America Same-Store Sales Growth Core Organic Growth Strategies Shareholder Value-Enhancing Initiatives Global Growth Restaurant Utilization & Daypart Expansion
Slide 7: Enabling Profitable Growth
Enabling Profitable Growth PRICE New QSR Quality at QSR Price PRODUCT Play a different game … Superior perceived quality, competitive price PEOPLE 5-Star Performers PERFORMANCE Keeping the brand promise PROMOTION Strategically driven, tactically brilliant PLACE The complete brand experience THE RECI
Slide 8: Product / Price Segmentation
Product / Price Segmentation Core and LTO Innovation Value Menu High Low
Slide 9: Right Size Menu and Value Menu
RIG RIGHT SIZE MENU a creesenuncen peut ‘BACON CHEESEBURGER DountestAc (CRISPY CRCKEN CAESAR WRAP SPcREGUARORSPICY GecrennuceeTs ‘CCKEN GO WRAP {SPICY OR GRRLED) ‘CAESAR OR GARDEN SESALI south ct $1.19 $1.59 $1.79 $1.29 $1.4 $1.49 $1.49 $1.69 E RIGHT SIZE VALUE MENU ROKESEURGER CRISPY CHCKEN SANDWIC
Slide 10: Innovation: Premium Limited-Time Offerings
Innovation: Premium Limited-Time Offerings New QSR Quality at a QSR Price
Slide 11: Image Activation Update
Image Activation Update Reimages averaging +25% sales growth 2011: 10 company prototypes 2012: 48 company Tier I reimages
Slide 12: 2013 Company Image Activation
2013 Company Image Activation 32 Tier II Remodels in 2013 20 Tier III Remodels in 2013 Tier II Tier III Estimates based on Company’s current outlook.
Slide 13: Image Activation Multi-Year Growth Plan
Image Activation Multi-Year Growth Plan Image Activation Progress by Year-End 2015: 48 100 200 200 25 69 45 40 40 40 25 25 50% of Company restaurants 1 out of 5 of the Wendy’s System restaurants Image Activation Multi-Year Growth Plan Cumulative IA Restaurants 1,331 Note: New Company restaurants wer
Slide 14: Steve Hare, Chief Financial Officer
STEVE HARE 15 © 2013 Oldemark LLC Chief Financial Officer
Slide 15: Q4 2012 Financial Summary
Q4 2012 Financial Summary *See reconciliation of Adjusted EBITDA from continuing operations and Adjusted EPS in the appendix. Q4 2012 Q4 2011 Better/ (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 co
Slide 16: FY 2012 Highlights
FY 2012 Highlights 2012 North America Same-Store Sales 1-Year 2-Year 2012 Company Restaurant Margin 2012 14.0% 2011 14.0% Franchise 1.6% 3.5% 3.6% Company-Operated 1.6%
Slide 17: FY 2012 Financial Summary
FY 2012 Financial Summary 18 Better/ (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* 0.17 $ 0.15 $ 0.02 $ ($ in millions except per s
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Slide 19: Income from Continuing Operations and Special Items
Income from Continuing Operations and Special Items 20 (Unaudited) ($ in Thousands, Except per Share Amounts) Per share Per share Per share Per share Adjusted income and adjusted earnings per share from continuing operations 33,629 $ 0.09 $ 16,425 $ 0.04 $ 65,316 $ 0.17 $ 62,080 $ 0.15 $ (Less) plus
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Slide 21: FY 2012 Cash Flow Highlights
FY 2012 Cash Flow Highlights 2012 IA Cap Ex Image Activation - New $27 Image Activation - Reimages 45 Total Image Activation $72 ($ in millions) Cash flow from operations 190.4 $ Capital expenditures 197.6 Beginning cash balance 475.2 $ Change in cash (21.8) Ending cash balance 453.4 $
Slide 22: Selected Balance Sheet Highlights
Selected Balance Sheet Highlights 21 *See reconciliation of Adjusted EBITDA from continuing operations in the appendix. ($ in millions) Cash $ Senior Debt 1,425 $ Capital Leases and Other Debt Total Debt 1,458 $ 2012 Adjusted EBITDA* $ Total Debt / 2012 Adjusted EBITDA* 4.4x Net Debt / 2012 Adjusted
Slide 23: Factors Affecting 2013 Outlook vs. 2012
Factors Affecting 2013 Outlook vs. 2012 Q1 Q2 Q3 Q4 2012 *See reconciliation of Q4 2012 and 2012 Adjusted EBITDA from continuing operations and Adjusted EPS in the appendix. • 2013: Higher Adjusted EBITDA growth in Q1, lower growth in Q4 • Unusually soft results in Q1 2012, but expect Q1 2013 Adjust
Slide 24: 2013 Image Activation Outlook
2013 Image Activation Outlook Estimates based on Company’s current outlook Q1 Q2 Q3 Q4 Co. Fran. Total Image Activation Quarterly Reopenings Company Image Activation Plan Estimates based on Company’s current outlook. Scrape & Rebuilds Tier I Reimages Tier II Reimages Tier III Reimages
Slide 25: 2013 New Restaurant Development
2013 New Restaurant Development Expect 120 to 130 New System Restaurants in 2013 2013 Expected Closures N.A. Company: 20 to 30 N.A. Franchise: 90 to 100 Global: 15 to 20 Company Franchise Global Note: New restaurant numbers represent the midpoint of the expected range; Estimates based on Company’s c
Slide 26: 2013 Capital Expenditures
2013 Capital Expenditures 2012 Cap Ex $198 mil Estimates based on Company’s current outlook Restaurant Equipment & Maintenance $40 Product Dev./Equipment Upgrades/Other Technology/POS Base Cap Ex New Restaurants Reimages Image Activation Cap Ex Total Projected Cap Ex $245 Estimates based on Company’
Slide 27: Strong Free Cash Flow & Balance Sheet
Strong Free Cash Flow & Balance Sheet Accelerating Investment in Image Activation: Expect $440 to $500 million 2013 to 2015 Return Capital to Shareholders $100 million share repurchase program authorized through 12/29/13 100% increase in quarterly dividend rate effective Q4 2012 Core Growth Priority
Slide 28: 2013 and Long-Term Earnings Outlook
2013 and Long-Term Earnings Outlook 28 Adjusted EBITDA: $350 to $360 million Adjusted EPS: $0.18 to $0.20 Average annual Adjusted EBITDA and Adjusted EPS growth rates in high-single-digit to low-double-digit range Estimates based on Company’s current outlook Long-Term Estimates based on Company’s cu
Slide 29: Emil Brolick, President & CEO
EMIL BROLICK 29 © 2013 Oldemark LLC President & CEO
Slide 30: A Total Brand Transformation
A Total Brand Transformation
Slide 31: John Barker, Chief Communications Officer
JOHN BARKER 31 © 2013 Oldemark LLC Chief Communications Officer
Slide 32: Q&A
Q&A
Slide 33: Appendix
Appendix
Slide 34: Reconciliation of Adjusted EBITDA from Continuing Operations to Net Income
Reconciliation of Adjusted EBITDA from Continuing Operations to Net Income Attributable to The Wendy’s Company 36 (Unaudited) ($ in Thousands) Adjusted EBITDA from continuing operations 95,883 $ 80,870 $ 333,328 $ 331,055 $ (Less) plus: Depreciation and amortization (36,840) (32,020) (146,976) (122,
Slide 35: Reconciliation of Adjusted Income and Adjusted EPS to Net Income
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 (Unaudited) ($ in Thousands, Except per Share Amounts) Per share Per share Per share Per share Adjusted income and adjusted earnings p