Wendy's Company (the) · NASDAQ:WEN
Wendy's Company (the) — The Wendy's Company — Q3 2024 Earnings Presentation
28 slides from Wendy's Company (the)'s earnings presentation, Oct 31, 2024
Slide 1: Third Quarter 2024 Conference Call
Third Quarter 2024 Conference Call October 31, 2024 © Quality Is Our Recipe, LLC
Slide 2: Aaron Broholm, Head of Investor Relations
Aaron Broholm Head of Investor Relations © Quality Is Our Recipe, LLC
Slide 3: Agenda
Agenda Business Update Q3 Financial Results 2024 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 & Chief Executive Officer
Kirk Tanner President & Chief Executive Officer © Quality Is Our Recipe, LLC
Slide 6: Q3 2024 Performance Highlights
Q3 2024 Performance Highlights Global Systemwide Sales Growth of 1.8% and Global SRS Growth of 0.2% Maintained Traffic and Dollar Share in the QSR Burger Category in the U.S.1 MSD Breakfast Sales Growth Year-Over-Year Global Digital Sales Grew ~40% Year-Over-Year, Delivering >17% Mix Remain on Track
Slide 7: Quality Is Our Recipe
Fresh Pamnous Food... Mace Right... Fer YOU Quality is our recipe Perfect every time Fresh Best hamburgers in the business Excellent experience Custom Iconic favorites By great people Personalized QUALITY IS OUR RECIPE TREAT PEOPLE WITH RESPECT DO THE RIGHT THING PROFIT MEANS GROWTH GIVE SOMETHING B
Slide 8: Strategic Framework
Strategic Framework THE WENDY'S COMPANY | 8
Slide 9: Long-Term Development Plans Remain on Track
Long-Term Development Plans Remain on Track ▪ Launched new development incentive structure in U.S., Canada and Latin America countries ▪ Expect 250 to 300 global new restaurant openings in 2024 ▪ 100% of expected new build goal for 2025 tied to development commitments THE WENDY'S COMPANY | 9
Slide 10: Strategic Initiative to Strengthen our Restaurant Footprint
Strategic Initiative to Strengthen our Restaurant Footprint ▪ Initiative will strengthen overall financial health of Wendy’s system ▪ Additional restaurant closures located in underperforming trade areas with AUVs averaging ~$1.1 million ▪ Over time many closures will be replaced by new restaurants
Slide 11: Confident in Plans to Accelerate Growth in Q4
Confident in Plans to DIGITAL Accelerate Growth in Q4 ACCELERATION Craveable Impactful Relevant Core Innovation Value THE WENDY'S COMPANY | 11
Slide 12: THE WENDY'S COMPANY | 12
THE WENDY'S COMPANY | 12
Slide 13: Coca-Cola Partnership Extended
Coca-Cola Partnership Extended ▪ Supports our mission to enhance our beverage portfolio ▪ Systemwide Coca-Cola Freestyle machine remains a competitive advantage ▪ Fuels immediate and long-term profitable growth ▪ Highlighting partnership through $1 any size drink promotion* *Limited time only at par
Slide 14: Investments Driving Restaurant Economic Model
Update to RLM slide Investments Driving Restaurant Economic Model ▪ Confident in continued breakfast growth, supported by marketing investments ▪ Voice AI driving restaurant labor efficiencies allowing crew members to deliver an elevated customer experience THE WENDY'S COMPANY | 14
Slide 15: THE WENDY'S COMPANY | 15
THE WENDY'S COMPANY | 15
Slide 16: Gunther Plosch, Chief Financial Officer
Gunther Plosch Chief Financial Officer © Quality Is Our Recipe, LLC
Slide 17: Third Quarter Financial Results
Third Quarter Financial Results $ Mils (except per share amounts) 2023 2024 B/(W) Global Systemwide Sales Growth 4.8% 1.8% 2-Yr 6.6% Global System SRS 2.8% 0.2% 2-Yr 3.0% US Company Restaurant Margin 15.6% 15.6% 0 bps UPDATE G&A $59.3 $62.8 (5.9%) Adjusted EBITDA1 $139.2 $135.2 (2.9)% Adjusted EPS1
Slide 18: 2024 Financial Outlook
2024 Financial Outlook Global Systemwide Sales ~3% Growth Previous: 3% to 5% Adjusted EBITDA $535M to $545M Unchanged Free Cash Flow $275M to $285M Unchanged Adjusted EPS $0.99 to $1.01 Previous: $0.98 to $1.02 Capital Expenditures $90M to $100M Unchanged THE WENDY'S COMPANY | 18
Slide 19: Capital Allocation Policy Remains Unchanged
Capital Allocation Policy Remains Unchanged 1 Continue to Invest in the Business for Growth 2 Sustain an Attractive Dividend Quarterly dividend rate held at $0.25 per share Reflecting $1 per share dividend for FY 20241 3 Utilize Excess Cash to Repurchase Shares and/or Reduce Debt $500M Share Repurch
Slide 20: Aaron Broholm, Head of Investor Relations
Aaron Broholm Head of Investor Relations © Quality Is Our Recipe, LLC
Slide 21: Investor Relations Calendar
Investor Relations Calendar November 19: Morgan Stanley NDR (Chicago) November 20: Stephens Conference (Nashville) December 3: Barclay’s Conference (NYC) February 13, 2025: Q4 2024 Earnings Release & Conference Call March 5, 2025: Investor Day THE WENDY'S COMPANY | 21
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 presented certain non-GAAP financial measures (i.e., adjusted revenues, adjusted EBITDA, adjusted earnings per share, free cash flow, and systemwide sales). These n
Slide 25: Reconciliations of Net Income to Adjusted EBITDA
Reconciliations of Net Income to Adjusted EBITDA and Revenue to Adjusted Revenues THE WENDY'S COMPANY | 25
Slide 26: Reconciliation of Net Income and Diluted Earnings Per Share
Reconciliation of Net Income and Diluted Earnings Per Share to Adjusted Income and Adjusted Earnings Per Share THE WENDY'S COMPANY | 26
Slide 27: Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow THE WENDY'S COMPANY | 27
Slide 28: The Wendy's Company
The Wendy’s Company