Wendy's Company (the) · NASDAQ:WEN
Wendy's Company (the) — The Wendy's Company — Q3 2022 Earnings Presentation
24 slides from Wendy's Company (the)'s earnings presentation, Nov 9, 2022
Slide 1: Third Quarter 2022 Conference Call
Third Quarter 2022 Conference Call November 9, 2022 © Quality Is Our Recipe, LLC
Slide 2: Kelsey Freed, Director – Investor Relations
Kelsey Freed Director – Investor Relations © 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 2022 Outlook IR Calendar Q&A THE WENDY'S COMPANY | 4
Slide 5: Todd Penegor, President & Chief Executive Officer
Todd Penegor President & Chief Executive Officer © Quality Is Our Recipe, LLC
Slide 6: CEO Business Update
CEO Business Update ▪ Global SRS growth reached double digits on a 2-year basis for 4th consecutive quarter ▪ Maintained QSR Burger category dollar & traffic share in the US* ▪ US Breakfast sales meaningfully accelerated following French Toast Sticks launch ▪ Global digital mix held strong at ~10% ▪
Slide 7: Global SRS Momentum Accelerated in Q3
Global SRS Momentum Accelerated in Q3 .Q3 Global SRS 6.9% 1 Year, 10.2% 2 Year 4th Consecutive Quarter of Double-Digit Sales Growth on 2-year basis .Q3 International SRS 10.8% 1 Year, 25.5% 2 Year . . Q3 US SRS 6.4% 1 Year, 8.5% 2 Year . Held QSR Burger Dollar & Traffic Share* THE WENDY'S COMPANY |
Slide 8: Breakfast Momentum Builds Following Major Menu Innovation
Breakfast Momentum Builds Following Major Menu Innovation .Canada ▪ Continue to build awareness and drive trial in Canada US . ▪ Successful French Toast Sticks launch drove meaningful breakfast sales acceleration in the quarter ▪ Expect 2 for $3 croissant promotion to build even more momentum ▪ Conf
Slide 9: Global Digital Momentum Sustained in Q3
Global Digital Momentum Sustained in Q3 ▪ Global sales mix held strong at ~10% ▪ International digital sales mix reached ~15% driven by strength across all regions ▪ Expect recently launched Canadian loyalty program to drive even more growth ▪ U.S. digital sales mix accelerated through Q3 and exited
Slide 10: Global Development Update
Global Development Update • Expanded our global footprint in Q3 despite ongoing macro challenges • Now expect ~2% to 2.5% net unit UK’s 9th Company-Operated Restaurant Opening growth in 2022 • Continue to expect step up in unit growth across 2023-2025 • Progress on solidifying growth plans continues
Slide 11: Remain Fully Committed to Long Term Growth Initiatives
Remain Fully Committed to Long Term Growth Initiatives THE WENDY'S COMPANY | 11
Slide 12: Gunther Plosch, Chief Financial Officer
Gunther Plosch Chief Financial Officer © Quality Is Our Recipe, LLC
Slide 13: Third Quarter Financial Results
Third Quarter Financial Results $ Mils (except per share amounts) 2022 2021 B/(W) Global Systemwide Sales Growth 8.9% 5.3% 2-Yr 14.2% Global System SRS 6.9% 3.3% 2-Yr 10.2% Company Restaurant Margin 14.3% 14.4% (10) bps G&A $62.5 $62.8 0.5% Adjusted EBITDA1 $134.5 $112.2 19.9% Adjusted EPS1 $0.24 $0
Slide 14: Updated 2022 Outlook
Updated 2022 Outlook Previous Updated Metric Outlook Outlook Global Systemwide Sales 6% to 8% 6% to 7% Growth Adjusted EBITDA $490M to $505M $490M to $500M Adjusted EPS $0.84 to $0.88 No Change Capital Expenditures $90M to $100M $90M to $95M Free Cash Flow $215M to $225M No Change THE WENDY'S COMPAN
Slide 15: 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% • Q4 Dividend of $0.125 Flexibility to Utilize Excess 3 Cash to Repurchase Shares and/or Reduce Debt Cash Balance >$750 Million at End of Q3 THE WENDY'S CO
Slide 16: Kelsey Freed, Director – Investor Relations
Kelsey Freed Director – Investor Relations © Quality Is Our Recipe, LLC
Slide 17: Investor Relations Calendar
Investor Relations Calendar • November 14: NDR with Cowen (Virtual – Chicago Focus) • November 15: Northcoast Research Conference (Virtual) • November 16: Virtual HQ Visit with Wedbush • November 30: Barclays Conference (New York) • December 1: NDR with Stephens (Boston) • December 6: Conference Cal
Slide 18: Q&A
Q&A
Slide 19: Appendix
Appendix
Slide 20: 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 21: 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 | 21
Slide 22: 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 | 22
Slide 23: 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 | 23
Slide 24: The Wendy's Company