Wendy's Company (the) · NASDAQ:WEN

Wendy's Company (the) — The Wendy's Company — Q1 2019 Earnings Presentation

29 slides from Wendy's Company (the)'s earnings presentation, May 8, 2019

  1. Slide 1: First Quarter 2019 Conference Call

    First Quarter 2019 Conference Call May 8, 2019 © Quality Is Our Recipe, LLC

  2. Slide 2: Greg Lemenchick, Director – Investor Relations

    Greg Lemenchick Director – Investor Relations © Quality Is Our Recipe, LLC

  3. 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 not historical facts, including information concerning possible or assumed future results of our operations. Those statements constitute “forward-looking

  4. Slide 4: Agenda

    Agenda Key Initiatives Financial Update IR Calendar Q&A THE WENDY'S COMPANY | 4

  5. Slide 5: Todd Penegor, President & Chief Executive Officer

    Todd Penegor President & Chief Executive Officer © Quality Is Our Recipe, LLC

  6. Slide 6: We will become the world's most thriving and beloved restaurant brand

    -WE WILL BECOME: THE WORLD'S thriving beleved RESTAURANT ‘BRAND:

  7. Slide 7: Q1 Highlights

    Q1 Highlights ▪ Global systemwide sales growth of 3.3% ▪ Global expansion continues; opened 43 restaurants ▪ NA SRS 1.3%; 2.9% on a two-year basis ▪ Company restaurant margin growth of 110 bps ▪ Adjusted EBITDA* growth of 12% ▪ Adjusted EPS* growth of 27% ▪ Free cash flow* generation of $48M, an inc

  8. Slide 8: 2019: Strengthening the Foundation for Growth

    2019: Strengthening the Foundation for Growth Accelerate North America Accelerate Global Same-Restaurant Sales Restaurant Expansion 1 More Visit, 1 More Dollar Continue Expansion of NA Restaurant Footprint Operational Excellence Strengthen International Foundation Digital Acceleration Restaurant Eco

  9. Slide 9: Organizational Structure Evolution

    Organizational Structure Evolution President, International President, U.S. and Chief and Chief Development Officer Commercial Officer THE WENDY'S COMPANY | 9

  10. Slide 10: 2019: Strengthening the Foundation for Growth

    2019: Strengthening the Foundation for Growth Accelerate North America Same-Restaurant Sales 1 More Visit, 1 More Dollar Operational Excellence Digital Acceleration Restaurant Economic Model THE WENDY'S COMPANY | 10

  11. Slide 11: Accelerating Same-Restaurant Sales through Mix

    Accelerating Same-Restaurant Sales through Mix THE WENDY'S COMPANY | 11

  12. Slide 12: Drive Same-Restaurant Sales Acceleration through Operational Excellence

    Drive Same-Restaurant Sales Acceleration through Operational Excellence THE WENDY'S COMPANY | 12

  13. Slide 13: Accelerating our Digital Platforms

    Accelerating our Digital Platforms Mobile Delivery ordering footprint Drive goal: goal: expand awareness activated to 80% of NA across digital across the system by platforms NA system by end of ‘19 end of ’19 THEWENDY'S THE WENDY'SCOMPANY COMPANY || 13

  14. Slide 14: 2019: Strengthening the Foundation for Growth

    2019: Strengthening the Foundation for Growth Accelerate Global Restaurant Expansion Continue Expansion of NA Restaurant Footprint Strengthen International Foundation Restaurant Economic Model THE WENDY'S COMPANY | 14

  15. Slide 15: Wendy's Creates Joy & Opportunity Through Food, Family & Community

    WENDY’S CREATES JOY & OPPORTUNITY THROUGH FOOD, FAMILY & COMMUNITY RESTAURANTS FOOD A place I love to go Food I love CLEAN & WELL MAINTAINED FRESH UP TO DATE HONEST INGREDIENTS EASY & CONVENIENT CRAVEABLE TASTE UPBEAT & COMFORTABLE MADE RIGHT SERVICE VALUE An experience that Worth what I pay brings

  16. Slide 16: Gunther Plosch, Chief Financial Officer

    Gunther Plosch Chief Financial Officer © Quality Is Our Recipe, LLC

  17. Slide 17: First Quarter Financial Highlights

    $ Mils (except per share amounts) First Quarter Financial Highlights (Unaudited) 2019 2018 B/(W) North America System SRS 1.3% 1.6% 2-Year 2.9% Adjusted Revenues1 $328.1 $301.7 8.8% Company Restaurant Margin 15.0% 13.9% 110 bps G&A $49.3 $50.4 2.2% Adjusted EBITDA1 $101.7 $90.8 12.0% Adjusted EPS1 $

  18. Slide 18: Flexible Capital Structure Supports Growth Initiatives

    Flexible Capital Structure Leverage Ratio* @ 3/31/2019: 4.9x Leverage Ratio Target: 4.5-5.5x Supports Growth Initiatives $ Mils 4.080% 7.0% 1995 2015 Notes $100M (Callable at par June 2019) Debentures $880M $450M 3.573% (3.5 yrs (6 yrs to to 2018 Notes maturity) maturity) (Callable at par March 2022

  19. Slide 19: Executing Against Capital Allocation Strategy

    Executing Against Capital Allocation Strategy 1 Invest in the Business for Growth 2 Sustain an Attractive Dividend; Payout Ratio > 50% 3 Utilize Excess Cash to Repurchase Shares THE WENDY'S COMPANY | 19

  20. Slide 20: Outlook Reaffirmed

    2019 Global Systemwide Sales growth of ~3 to 4% Outlook G&A Expense of ~$195M Reaffirmed Adjusted EBITDA growth of ~2.5 to 4.5% Adjusted Tax Rate of ~22 to 23% Adjusted Earnings Per Share growth of ~3.5 to 7.0% CAPEX of ~$75 to $80M Free Cash Flow of ~$230 to $240M (excluding the ~$20M tax effected

  21. Slide 21: Greg Lemenchick, Director – Investor Relations

    Greg Lemenchick Director – Investor Relations © Quality Is Our Recipe, LLC

  22. Slide 22: Investor Relations Calendar (Tentative)

    Investor Relations Calendar (Tentative) • May 14: SunTrust NDR (Chicago) • May 16: BMO Conference (NYC) • May 23: UBS NDR (Toronto) • June 13: HQ Visit with KeyBanc (Dublin) • August 7: Second Quarter Earnings Release & Call • October 10: Investor Day THE WENDY'S COMPANY | 22

  23. Slide 23: Q&A

    Q&A

  24. Slide 24: Appendix

    Appendix

  25. Slide 25: 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, adjusted tax rate, free cash flow and systemwi

  26. Slide 26: 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 | 26

  27. Slide 27: Reconciliation of Net Income and Diluted EPS 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 | 27

  28. Slide 28: Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow

    Reconciliation In Thousands (Unaudited) of Net Cash Provided by Operating Activities to Free Cash Flow THE WENDY'S COMPANY | 28

  29. Slide 29: The Wendy's Company

The Wendy's Company — Q1 2019 Earnings Presentation on 6ix