Wendy's Company (the) · NASDAQ:WEN
Wendy's Company (the) — The Wendy's Company — Q3 2021 Earnings Presentation
26 slides from Wendy's Company (the)'s earnings presentation, Nov 10, 2021
Slide 1: Third Quarter 2021 Conference Call
Third Quarter 2021 Conference Call November 10, 2021 © Quality Is Our Recipe, LLC
Slide 2: Greg Lemenchick
Greg Lemenchick Senior Director – Investor Relations & Corporate FP&A © Quality Is Our Recipe, LLC
Slide 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 “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Reform Act”). For all such forward-looking s
Slide 4: Agenda
Agenda Business Update Q3 Financial Results 2021 Outlook IR Calendar Q&A THE WENDY'S COMPANY | 4
Slide 5: Todd Penegor
Todd Penegor President & Chief Executive Officer © Quality Is Our Recipe, LLC
Slide 6: CEO Business Update
CEO Business Update ▪ Strong 2-Year Global SRS Growth ▪ Maintained QSR Burger Category Dollar Share* ▪ Breakfast and Digital Mix Accelerated ▪ UK momentum continues with strong sales and additional openings ▪ Significant partnership signed with Google to drive technology innovation ▪ Franchisees rem
Slide 7: US Sales Continued to Deliver Growth on Growth
US Sales Continued to Deliver Growth on Growth ▪ US 2-year SRS grew 9.1% ▪ Checks remained elevated throughout quarter ▪ Continued to mix customers into premium items with new Made to Crave offering ▪ Expect game changing fry innovation to drive growth THE WENDY'S COMPANY | 7
Slide 8: International Delivered Another Strong Quarter
International Delivered Another Strong Quarter ▪ Second consecutive quarter of double digit 1- and 2-year International SRS ▪ 2-year SRS grew 12.6% ▪ Continue to see growing strength in largest markets ▪ Almost 2/3 of international markets have returned to pre-COVID sales levels as recovery spreads
Slide 9: Strong Promotions Drove Breakfast Mix Acceleration and Momentum in Q3
Strong Promotions Drove Breakfast Mix Acceleration and Momentum in Q3 ▪ Breakfast sales mix exited Q3 at 7.5%; highest monthly mix of 2021 ▪ Grew QSR burger morning meal traffic share* ▪ Expect continued growth from the recently launched $1 Biscuit promotion ▪ Remain committed to $25M Company advert
Slide 10: Digital Acceleration Continued in Q3
Digital Acceleration Continued in Q3 ▪ Global sales mix reached ~8.5% driven by both U.S. and International strength ▪ International sales mix reached ~13% ▪ U.S. digital sales mix grew to north of 8% by quarter end ▪ U.S. rewards members grew ~10% to almost 19M at quarter end ▪ Strategic partnershi
Slide 11: Global Restaurant Development Continued to Progress in Q3
Global Restaurant Development Continued to Progress in Q3 • Meaningfully expanded our footprint • UK momentum continued with 400th Wendy’s in Canada additional openings and new franchise partner • Groundbreaker development agreements added across the globe • Remain on track to have ~7K Global restau
Slide 12: Remain Fully Committed to Long Term Growth Initiatives
Remain Fully Committed to Long Term Growth Initiatives Investing in Accelerated Global Growth Build Our Digital Expand Our Breakfast Acceleration Footprint Daypart Fast Food Operational Good Done Done Right Excellence Right Restaurant Economic Model THE WENDY'S COMPANY | 12
Slide 13: Gunther Plosch
Gunther Plosch Chief Financial Officer © Quality Is Our Recipe, LLC
Slide 14: Third Quarter Financial Results
Third Quarter Financial Results $ Mils (except per share amounts) 2021 2020 B/(W) Global Systemwide Sales Growth 5.3% 6.7% 2-Yr. 12.0% Global System SRS 3.3% 6.1% 2-Yr 9.4% Company Restaurant Margin 14.4% 16.9% (250) bps G&A $62.8 $47.3 (32.8)% Adjusted EBITDA1 $112.2 $118.8 (5.6)% Adjusted EPS1 $0.
Slide 15: 2021 Outlook
2021 Outlook Initial Current Metric Outlook Outlook Global Systemwide Sales Growth 6% to 8%* 11% to 12%* Adjusted EBITDA ~$445M to $455M ~$465M to $470M Adjusted EPS ~$0.67 to $0.69 ~$0.79 to $0.80 Capital Expenditures ~$80M to $90M ~$75M to $85M Free Cash Flow ~$230M to $240M ~$270M to $280M THE WE
Slide 16: Capital Allocation Policy Remains Unchanged
Capital Allocation Policy Remains Unchanged Continue to Invest in the 1 Business for Growth Sustain an Attractive Dividend; 2 Payout Ratio > 50% Flexibility to Utilize Excess 3 Cash to Repurchase Shares and/or Reduce Debt THE WENDY'S COMPANY | 16
Slide 17: Greg Lemenchick
Greg Lemenchick Senior Director – Investor Relations & Corporate FP&A © Quality Is Our Recipe, LLC
Slide 18: Wendy's to Host Virtual Investor Day
Wendy’s to Host Virtual Investor Day March 10, 2022 Event to follow Q4 and Full Year Earnings Release on February 10, 2022 THE WENDY'S COMPANY | 18
Slide 19: Investor Relations Calendar
Investor Relations Calendar • Nov 12: Conference Call with Truist • Nov 16: NDR with Credit Suisse (Chicago) • Nov 17: NDR with BMO (Boston) • Nov 30: NDR with Cowen (New York) • Dec 1: Stephens Conference (Nashville) • Dec 9: Virtual NDR with Goldman Sachs (West Coast) • Dec 14: Virtual HQ Visit wi
Slide 20: Q&A
Q&A
Slide 21: Appendix
Appendix
Slide 22: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures In addition to the GAAP financial measures included in this presentation, the Company has presented certain non-GAAP financial measures (i.e., adjusted revenues, adjusted EBITDA, adjusted earnings per share, free cash flow and systemwide sales). These no
Slide 23: Reconciliations of Net Income to Adjusted EBITDA and Revenues to Adjusted Revenues
In Thousands (Unaudited) Reconciliations of Net Income to Adjusted EBITDA and Revenues to Adjusted Revenues THE WENDY'S COMPANY | 23
Slide 24: Reconciliation of Net Income and Diluted Earnings Per Share to Adjusted
In Thousands except per-share amounts (Unaudited) Reconciliation of Net Income and Diluted Earnings Per Share to Adjusted Income and Adjusted Earnings Per Share THE WENDY'S COMPANY | 24
Slide 25: Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow
In Thousands (Unaudited) Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow THE WENDY'S COMPANY | 25
Slide 26: Slide 26