Wendy's Company (the) · NASDAQ:WEN
Wendy's Company (the) — Q2 2017 Earnings Presentation
27 slides from Wendy's Company (the)'s earnings presentation, Aug 9, 2017
Slide 1: Second Quarter 2017 Conference Call
Second Quarter 2017 Conference Call August 9, 2017 © Quality Is Our Recipe, LLC Exhibit 99.1
Slide 2: Peter Koumas, Director – Investor Relations
Peter Koumas Director – Investor Relations © Quality Is Our Recipe, LLC
Slide 3: Forward-Looking Statements and Non-GAAP Financial Measures
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 ou
Slide 4: Agenda
Agenda CEO Update Financial Update Q&A
Slide 5: Todd Penegor, President & Chief Executive Officer
Todd Penegor President & Chief Executive Officer © Quality Is Our Recipe, LLC
Slide 6: Q2 Highlights
Q2 Highlights * See reconciliation of non-GAAP financial measures in the Appendix. 18th consecutive quarter of positive NA SRS NA SRS increase 3.2%; 3.6% on a two-year basis Global expansion continues; 35 global restaurant openings in Q2 Global systemwide sales increase 4.6% in constant currencies I
Slide 7: North America Same-Restaurant Sales
North America Same-Restaurant Sales 2.6% 3.6%
Slide 8: Global Footprint Expansion Continues
Global Footprint Expansion Continues 0.08% North America Restaurant Openings International Restaurant Openings ’17E Net New Growth Rate ~1% ’17E Net New Growth Rate ~14% THE WENDY'S COMPANY |
Slide 9: Image Activation
Image Activation *Represents Total System Cumulative Reimages & New Builds and includes Franchise Reimages open or under construction 118 Buy & Flip transactions completed in Q1. On track to achieve target of 400 ~42% 36% THE WENDY'S COMPANY |
Slide 10: Systemwide Sales Growth
Systemwide Sales Growth *Excludes Venezuela; systemwide sales growth is calculated on a constant currency basis THE WENDY'S COMPANY |
Slide 11: Transforming Our Franchise System Through Buy & Flips
Transforming Our Franchise System Through Buy & Flips ~34% of Global System Image Activated at the end of Q1 2017 ~475 144 *Includes DavCo-NPC Transaction 294*
Slide 12: CLEAN & WELL MAINTAINED.
CLEAN & WELL MAINTAINED. P TO DATE wonesr meaeoinrs CRAVEABLE TAS EASY & CONVENIENT UPBEAT & COMFORTABLE FOOD! LACE | LOVE API LOVE TO GO j Delight every customer. COMPETITIVE PRICE WENDY'S QUALITY GREAT EXPERIENCE FRIENDLY ACCURATE FAST AN EXPERIENCE THAT BRINGS ME BACK WORTH WHAT | PAY QUALITY IS
Slide 13: Technology
Technology Order Here THE WENDY'S COMPANY | Kiosks Benefits: incremental throughput, improved customer experience, and labor leverage Mobile Ordering Delivery Encouraging results during initial test phase Targeting 75% of NA restaurants mobile ordering capable by end of 2017 Now expect ~300 restaura
Slide 14: Gunther Plosch, Chief Financial Officer
Gunther Plosch Chief Financial Officer © Quality Is Our Recipe, LLC
Slide 15: Second Quarter Financial Highlights
Second Quarter Financial Highlights 2017 2016 B/(W) Company Restaurant Margin 19.6% 21.9% (230) bps G&A $51.3 $61.1 16.1% Adjusted EBITDA* $116.1 $102.5 13.3% Adjusted EBITDA Margin* 36.2% 26.8% +940 bps Adjusted EPS* $0.15 $0.10 50.0% YTD Free Cash Flow $88.5 $37.3 137.2% $ Mils (except per share a
Slide 16: Q2 2017 vs. Q2 2016 Adjusted EBITDA
Q2 2017 vs. Q2 2016 Adjusted EBITDA $ Mils (Unaudited) Adj. EBITDA Margin 36.2% Adj. EBITDA Margin 26.8% THE WENDY'S COMPANY |
Slide 17: Q2 2017 vs. Q2 2016 Adjusted EPS
17 Q2 2017 vs. Q2 2016 Adjusted EPS (Unaudited) THE WENDY'S COMPANY |
Slide 18: Returning Cash to Shareholders
THE WENDY'S COMPANY | Returning Cash to Shareholders Repurchased 2.3 million shares for $34.6 million in Q2 ~$98 million remained against the $150 million share repurchase authorization at the end of Q2 Q2 ending cash balance of $205 million
Slide 19: Flexible Capital Structure Supports Growth Initiatives
Flexible Capital Structure Supports Growth Initiatives 7/2/2017 TTM Leverage Ratio (excl. Cap leases): 5.3x Target Leverage Ratio: 5-6x $875 $900 $500 $100 *Notional amounts shown as of issuance date; 1% amort is paid per annum Q2 2017 Net Debt: $2.1B (excl. Cap Leases) / TTM Adj. EBITDA: $396.6M 3.
Slide 20: Updated Reaffirmed 2017 Outlook
Updated Reaffirmed THE WENDY'S COMPANY | 2017 Outlook CAPEX of ~$80 to $90M Free Cash Flow of ~$160 to $185M North America SRS of ~2-3% Interest Expense of ~$115 to $120M Commodity Inflation of ~3% to 4% G&A Expense at Low End of Previously Issued Range of ~$210 to $220M Labor Inflation of ~4% Compa
Slide 21: 2017 Investor Relations Calendar
2017 Investor Relations Calendar: Q3 (Tentative) August 16: RBC Restaurants & Consumer Staples IR Investor Day (New York) August 18: Guggenheim NDR (San Francisco) August 29: SunTrust NDR (Chicago) September 14: CL King Conference (New York) September 26: Wells Fargo Restaurants Forum (Boston) Septe
Slide 22: Q&A
Q&A
Slide 23: Appendix
Appendix
Slide 24: 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 included certain non-GAAP financial measures (i.e., adjusted EBITDA, adjusted EBITDA margin, adjusted earnings per share, adjusted tax rate, free cash flow and syst
Slide 25: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA In Thousands (Unaudited) THE WENDY'S COMPANY |
Slide 26: Reconciliation of Net (Loss) Income and Diluted EPS to Adjusted Income and EPS
Reconciliation of Net (Loss) Income and Diluted (Loss) Earnings Per Share to Adjusted Income and Adjusted Earnings Per Share In Thousands except per-share amounts (Unaudited)
Slide 27: Slide 27