Wendy's Company (the) · NASDAQ:WEN
Wendy's Company (the) — The Wendy's Company — Q1 2025 Earnings Presentation
25 slides from Wendy's Company (the)'s earnings presentation, May 2, 2025
Slide 1: First Quarter 2025 Conference Call
First Quarter 2025 Conference Call May 2, 2025
Slide 2: Aaron Broholm, Head of Investor Relations
Aaron Broholm Head of Investor Relations
Slide 3: Agenda
Agenda Business Update Q1 Financial Results 2025 Financial Outlook IR Calendar Q&A THE WENDY'S COMPANY | 3
Slide 4: 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 “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act
Slide 5: Kirk Tanner, President & CEO
Wendys KIRK TANNER © PRESIDENT & CEO
Slide 6: Q1 2025 Highlights
Q1 2025 HIGHLIGHTS Opened 74 New Restaurants Globally Global Systemwide Sales Declined 1.1% and Global SRS Declined 2.1% Maintained Traffic and Dollar Share in the QSR Burger Category in the U.S. International Systemwide Sales Growth of 8.9% and SRS Growth of 2.3% Returned $173+ Million to Sharehold
Slide 7: Delivering Against Long-Term Strategy
DELIVERING AGAINST LONG-TERM STRATEGY DOUBLE DOWN ON DELIVER AN EXCEPTIONAL ACCELERATE FRESH, FAMOUS FOOD CUSTOMER EXPERIENCE GLOBAL UNIT GROWTH CREATING VALUE FOR FRANCHISEES AND SHAREHOLDERS 7
Slide 8: Double Down on Fresh, Famous Food
DELIVERING AGAINST LONG-TERM STRATEGY DOUBLE DOWN ON FRESH, FAMOUS FOOD Majority of Ingredients in U.S. and International Markets Sourced Close to Home Partnered With Girl Scouts on Successful Collaboration Featuring Thin Mint Frosty Launching New Ways to Frosty Platform 8
Slide 9: Double Down on Fresh, Famous Food
DELIVERING AGAINST LONG-TERM STRATEGY DOUBLE DOWN ON FRESH, FAMOUS FOOD Providing Customers With More Fresh, Famous Featuring Never Been Done Before, Famous Food at an Attractive Value Food and Fresh Collaborations 9
Slide 10: Deliver an Exceptional Customer Experience
DELIVERING AGAINST LONG-TERM STRATEGY DELIVER AN EXCEPTIONAL CUSTOMER EXPERIENCE Completed Rollout of New Field Organization; Initial Restaurant Assessments Underway Improved Order Accuracy Through Menu Item Labels & Delivery Scales On Track To Deploy Digital Menu Boards and FreshAI to More than 500
Slide 11: Accelerate Global Unit Growth
DELIVERING AGAINST LONG-TERM STRATEGY ACCELERATE GLOBAL UNIT GROWTH On Track to Achieve 2025 Net Unit Growth Target of 2-3% Opened 74 New Restaurants Globally, 68 Net New Development Agreements for 25 Units in Mexico, 30 Units in Chile 11
Slide 12: Best Food, Great Experience
At Wendy’s, our focus is on serving the BEST FOOD and creating a GREAT EXPERIENCE for our customers. 12
Slide 13: Ken Cook, CFO
8 ae «KEN COOK CFO a oN q
Slide 14: First Quarter Financial Results
FIRST QUARTER FINANCIAL RESULTS $ Mils (except per share amounts) 2024 2025 B/(W) Global Systemwide Sales Growth 2.6% (1.1)% 2-Yr 1.5% Global System SRS 0.9% (2.1)% 2-Yr (1.2)% US Company Restaurant Margin 15.3% UPDATE 14.8% (50) bps G&A $63.8 $68.2 (6.9)% Adjusted EBITDA1 $127.8 $124.5 (2.6)% Adjus
Slide 15: First Quarter CapEx and Free Cash Flow
FIRST QUARTER CAPEX AND FREE CASH FLOW Q1 CapEx and Build-to-Suit Investments $9.9M $6.1M $5.8M Development of Company- Technology Initiatives Build-to-Suit Operated Restaurants 2024 2025 B/(W) Free Cash Flow1 $56.0M $68.0M $12.0M 1 Beginning with the three months ended March 30, 2025, the Company m
Slide 16: First Quarter Capital Allocation
FIRST QUARTER CAPITAL ALLOCATION Q1 Share Repurchases Q2 Dividend 8.2M shares $0.14/share Anticipate repurchasing up to $25M Target payout ratio of 50-60% of adjusted of additional shares in 2025 earnings Anticipate returning up to $325M to shareholders in 2025 16
Slide 17: 2025 Outlook
2025 OUTLOOK Net Unit Growth 2% to 3% Global Systemwide Sales Growth (2.0%) to Flat Adjusted EBITDA $530M to $545M Adjusted EPS $0.92 to $0.98 Prior Definition: $250M to $270M Free Cash Flow Updated Definition: $185M to $205M1 Capital Expenditures $100M to $110M 1 Beginning with the three months end
Slide 18: Aaron Broholm, Head of Investor Relations
Aaron Broholm Head of Investor Relations
Slide 19: Investor Relations Calendar
Investor Relations Calendar May 19th: Wolfe Investor Conference (Virtual) May 29th: Bernstein Strategic Decisions Conference (NYC) June 11th: Evercore Consumer and Retail Conference (NYC)
Slide 20: Q&A
Q&A
Slide 21: Appendix
APPENDIX 21
Slide 22: 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 and free cash flow). These non-GAAP financial m
Slide 23: Reconciliations of Net Income to Adjusted EBITDA and Revenue to Adjusted Revenues
RECONCILIATIONS OF NET INCOME TO ADJUSTED EBITDA AND REVENUE TO ADJUSTED REVENUES 23
Slide 24: Reconciliation of Net Income and Diluted EPS to Adjusted Income and Adjusted EPS
RECONCILIATION OF NET INCOME AND DILUTED EARNINGS PER SHARE TO ADJUSTED INCOME AND ADJUSTED EARNINGS PER SHARE 24
Slide 25: Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW 25