Wendy's Company (the) · NASDAQ:WEN
Wendy's Company (the) — The Wendy's Company — Q1 2020 Earnings Presentation
29 slides from Wendy's Company (the)'s earnings presentation, May 6, 2020
Slide 1: First Quarter 2020 Conference Call
First Quarter 2020 Conference Call May 6, 2020 © 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 Financial Results COVID-19 Update 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: Business Update
Business Update Successful Breakfast Launch April Sales Trends Improving Significant Digital Sales Growth Supporting Employees, Customers, and Franchisees Strong Liquidity Position Announced Quarterly Dividend of 5 cents Committed to Long Term Growth Initiatives THE WENDY'S COMPANY | 6
Slide 7: Gunther Plosch
Gunther Plosch Chief Financial Officer © Quality Is Our Recipe, LLC
Slide 8: First Quarter Financial Results
First Quarter Financial Results $ Mils (except per share amounts) (Unaudited) 2020 2019 B/(W) Global System SRS (0.2%) 1.4% 2-Year 1.2% Adjusted Revenues1 $326.4 $328.1 (0.5%) Company Restaurant Margin 10.1% 15.0% (490 bps) G&A $51.6 $49.3 (4.7%) Adjusted EBITDA1 $89.3 $101.7 (12.2%) Adjusted EPS1 $
Slide 9: Todd Penegor
Todd Penegor President & Chief Executive Officer © Quality Is Our Recipe, LLC
Slide 10: Supporting our Customers, Crew & Franchisees
Supporting our Customers, Crew & Franchisees SERVING SUPPORTING PARTNERING OUR OUR WITH COMMUNITIES EMPLOYEES FRANCHISEES THE WENDY'S COMPANY | 10
Slide 11: U.S. Restaurant Sales Impacted by COVID-19
U.S. Restaurant Sales Impacted by COVID-19 • April sales trends continue to improve • April SRS of -13.8% • Digital sales have increased to ~5.5%* of sales • US System is ~99%* open * Through the week ended 4/26/2020 THE WENDY'S COMPANY | 11 ** April Week 2 had a (3%) impact and April Week 3 had a 5
Slide 12: Successful Breakfast Launch
Successful Breakfast Launch Drove significant awareness Extremely high customer satisfaction Sales sustaining at ~8% of total U.S. sales Profitable daypart Franchise system very happy with launch Breakevens reduced even further THE WENDY'S COMPANY | 12
Slide 13: Marketing Plans Evolving with COVID-19
Marketing Plans Evolving with COVID-19 THE WENDY'S COMPANY | 13
Slide 14: Digital Unlocking Greater Convenience
Digital Unlocking Greater Convenience THE WENDY'S COMPANY | 14
Slide 15: Focused on Great, Safe Experiences for Customers & Crew
Focused on Great, Safe Experiences for Customers & Crew Emergency Paid Sick Leave Policy Restaurant Recognition Pay Low Employee Turnover Speed of Service Improvements Customer Satisfaction Improvements THE WENDY'S COMPANY | 15
Slide 16: 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
Slide 17: Gunther Plosch
Gunther Plosch Chief Financial Officer © Quality Is Our Recipe, LLC
Slide 18: Significant Franchise Relief Provided
Significant Franchise Relief Provided Royalty Deferrals Marketing Fund Deferrals Breakfast Marketing Fund Abatements Rent Deferrals PARTNERING WITH Extending Reimaging and New FRANCHISEES Build requirements Interest Only Payments on Debt THE WENDY'S COMPANY | 18
Slide 19: Strong Liquidity Position
Strong Liquidity Position Cash Balance Remains Strong* ~$365 million Capital Expenditures Reductions of ~$20 million General & Administrative Reductions of ~$10 million THE WENDY’S COMPANY 19 *Balance as of May 3, 2020
Slide 20: 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
Slide 21: Greg Lemenchick
Greg Lemenchick Senior Director – Investor Relations & Corporate FP&A © Quality Is Our Recipe, LLC
Slide 22: Investor Relations Calendar
Investor Relations Calendar • May 13: Canada Virtual NDR with Evercore • May 14: Midwest Virtual NDR with Guggenheim • May 28: Bernstein Virtual Conference • June 17: Oppenheimer Virtual Conference • June 23: Piper Sandler Virtual Call THE WENDY'S COMPANY | 22
Slide 23: Q&A
Q&A
Slide 24: Appendix
Appendix
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, free cash flow and systemwide sales). These no
Slide 26: Reconciliations of Net Income to Adjusted EBITDA and Revenues
In Thousands (Unaudited) Reconciliations of Net Income to Adjusted EBITDA and Revenues to Adjusted Revenues THE WENDY'S COMPANY | 26
Slide 27: Reconciliation of Net Income and Diluted Earnings Per Share
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
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
Slide 29: Slide 29