Slide 1: Third-Quarter 2014 Conference Call
Third-Quarter 2014 Conference Call Exhibit 99.1 © 2013 Oldemark LLC November 6, 2014
Slide 2: David Poplar, Vice President Investor Relations
DAVID POPLAR 2 © 2013 Oldemark LLC Vice President Investor Relations
Slide 3: Today's Agenda
Today’s Agenda CEO Overview Emil Brolick Financial Update Todd Penegor Q&A
Slide 4: Emil Brolick, President & CEO
EMIL BROLICK 5 © 2013 Oldemark LLC President & CEO
Slide 5: How We Grow
HOW WE GROW 6 System Optimization Financial Management New Restaurant Growth Image / Experience Activation North America Same-Restaurant Sales Growth BRAND RELEVANCE + ECONOMIC RELEVANCE = GROWTH Shareholder Value-Enhancing Initiatives Core Organic Growth Strategies Global Growth Restaurant Utilizat
Slide 6: Q3 highlights: Image Activation, dividend, outlook
OPENED IMAGE ACTIVATION RESTAURANT DURING OCTOBER INCREASED DIVIDEND RATE 10% TO $0.055 PER SHARE REALIGNING RESOURCES TO FOCUS ON GROWTH AND TECHNOLOGY INITIATIVES REAFFIRMING 2014 ADJ. EPS OUTLOOK; EXPECT ADJ. EBITDA OF ~ $390 MILLION STRONG TWO-YEAR COMPANY- OPERATED SRS OF 5.2 PERCENT TH © 2013
Slide 7: Five Consecutive Quarters of SRS Growth
Five Consecutive Quarters of SRS Growth 3.9% 3.2% 3.1% 3.9% 2.0% 1.3% First Half of Quarter: (1.3)%; Second Half of Quarter: +4.4% Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014
Slide 8: Five Consecutive Quarters of Solid Two-Year SRS Growth
Five Consecutive Quarters of Solid Two-Year SRS Growth 5.9% 2.9% 2.3% 4.3% 5.2% Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014
Slide 9: Leadership Through Product Innovation
Leadership Through Product Innovation
Slide 10: My Rewards
TE My Rewards © Find a Wendy's Noar You oa
Slide 11: Todd Penegor, Chief Financial Officer
© 2013 Oldemark LLC TODD PENEGOR 13 Chief Financial Officer
Slide 12: Q3 2014 Highlights
Q3 2014 Highlights *See reconciliation of Adjusted EBITDA in the appendix. SALES $409.1 $558.0 -26.7 FRANCHISE REVENUES 103.4 82.8 24.9 TOTAL REVENUES $512.5 $640.8 -20.0 ADJUSTED EBITDA* $94.1 $98.7 -4.7 Q3 Q3 % Change (Unaudited) $ in millions
Slide 13: Q3 2014 Highlights
Q3 2014 Highlights G&A $65.8 $76.5 -14.0 N.A. CO. REST. MARGIN 15.5% 15.6% (10) bps OPERATING PROFIT 46.9 26.8 +75.0 ADJUSTED EPS* 0.08 0.08 -- REPORTED EPS 0.06 0.00 N/A Q3 Q3 % Change (Unaudited) $ in millions, except per-share amounts * See reconciliation of Adjusted EPS in the appendix.
Slide 14: Q3 2013 vs. Q3 2014: Adjusted EBITDA
Q3 2013 vs. Q3 2014: Adjusted EBITDA (Unaudited) $ in millions * See reconciliation in appendix. $98.7 $94.1 ($18.5) ($3.9) ($4.2) $22.4 $2.0 2013 Q3 Adj. EBITDA* Lost EBITDA From Restaurants Sold Image Activation Gain/Loss on Sale of Assets Rental Income (net), Royalties, & G&A Savings Restaurant I
Slide 15: Q3 2013 vs. Q3 2014: G&A
Q3 2013 vs. Q3 2014: G&A (Unaudited) $ in millions (Unaudited) $ in millions * Amounts are net of Sys Ops savings which are included in “Sys Ops Savings & G&A Management” $76.5 $65.8 ($6.6) $2.6 $7.1 $7.6 2013 Q3 G&A Stock Comp * Franchise Incentives Sys. Ops. Savings & G&A Management Incentive Comp
Slide 16: Cash Flow Highlights
Cash Flow Highlights Returned nearly $350 million to shareholders in dividends and share repurchases in 2014 YTD Cash Flow from Operations $182.6 Capital Expenditures 197.9 Beginning Cash Balance $580.2 Change In Cash (237.8) Ending Cash Balance $342.4 YTD 2014 (Unaudited) $ in millions
Slide 17: Ended 2014 Q3 with $342M of Cash
Ended 2014 Q3 with $342M of Cash CASH PRIORITIES Invest in our Business Dividend Growth Share Repurchase • Image Activation Reimages, including Increasing Scrape & Rebuilds • Announced divided rate increase of 10 percent • Offset ongoing equity award dilution beyond 2014
Slide 18: 2014 Outlook
2014 Outlook Adjusted EBITDA of ~$390 million Adjusted EPS of $0.34 to $0.36 • Full-year Company-operated SRS growth of ~ 2.5% • Reduction in interest expense of approximately $15 million • Capital expenditures of $280 to $290 million, including approximately $215 million for Company-operated Image
Slide 19: Outlook: 2015 to 2017
2015 2016 2017 Outlook: 2015 to 2017 SRS 3%+ 3%+ 3%+ Adjusted EBITDA Mid to High Single digits High Single Digits Low Double Digits Adjusted EPS Mid-Teens Mid - Teens Mid - Teens
Slide 20: Image Activation Franchise Adoption Accelerating
Image Activation Franchise Adoption Accelerating TOTAL SYSTEM ANNUAL REIMAGES AND NEW BUILDS TOTAL SYSTEM CUMULATIVE REIMAGES AND NEW BUILDS 236 59 10 435-460 10 69 305 740-765 2011A 2012A 2013A 2014E 200 Company reimages 15 Company new 175-200 Franchise reimages 45 Franchise new 2011A 2012A 2013A 2
Slide 21: Facilitating Franchisee Commitments for Reimages and New Builds
Facilitating Franchisee Commitments for Reimages and New Builds • Market planning • Joint capital planning • Multi-Year Investment Plan • Construction support • Turnkey services • Incentives • Canadian Build-to-Suit program
Slide 22: 2013 Actual to 2015 Forecast: G&A
2013 Actual to 2015 Forecast: G&A ~ $30 Million of Cost Savings (Unaudited) $ in millions $294 $267 $265 $250 $2 ($7) ($5) $20 $8 $4 ($5) 2013 Actual G&A 2014 G&A Pre - G&A Initiative G&A Cost Initiative 2014 Current Forecast G&A Merit, 53rd wk & Other Incentive Comp to 100% G&A Cost Initiative Sale
Slide 23: Restaurant Ownership Optimization
Restaurant Ownership Optimization Selective Buying and Selling of Restaurants Declining Company ownership over time Canadian Growth Initiative Focused on Building a Stronger Wendy’s Commitment to Growth Image Activation and new restaurant development Improved Economic Models for Company and Franchis
Slide 24: David Poplar, Vice President Investor Relations
© 2013 Oldemark LLC DAVID POPLAR 26 Vice President Investor Relations
Slide 25: Year-End Investor Relations Calendar
Year-End Investor Relations Calendar FEBRUARY 24, 2015 FEBRUARY 3, 2015 Issue Final 2014 Earnings Release 10-K Filing Preliminary 2014 Earnings Release and Investor Day Dublin, Ohio
Slide 26: Q&A
Q&A
Slide 27: Appendix
Appendix
Slide 28: Reconciliation of Adjusted EBITDA to Net Income
Reconciliation of Adjusted EBITDA to Net Income Adjusted EBITDA 94,125 $ 98,737 $ 285,691 $ 278,122 $ (Less) plus: Depreciation and amortization (36,274) (44,325) (117,790) (134,841) Facilities action charges (income), net (7,520) (22,275) 35,630 (31,690) Impairment of long-lived assets (3,408) (5,3
Slide 29: Reconciliation of Adjusted Income and Adjusted EPS
Reconciliation of Adjusted Income and Adjusted Earnings Per Share to Net Income and Earnings Per Share Per share Per share (a) Per share Per share Adjusted income and adjusted earnings per share 29,617 $ 0.08 $ 30,254 $ 0.08 $ 90,083 $ 0.24 $ 75,132 $ 0.19 $ (Less) plus: Facilities action charges (i
Slide 30: Wendy's