Slide 1: Second-Quarter 2016 Conference Call
August 10, 2016 Second-Quarter 2016 Conference Call Exhibit 99.1
Slide 2: Group Manager – Investor Relations Peter Koumas
Group Manager – Investor Relations Peter Koumas
Slide 3: Today's Agenda
Today’s Agenda CEO Overview Todd Penegor Financial Update Gunther Plosch Key Initiatives Update Todd Penegor Q&A 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 not historical facts, including information concerning possible or assumed future results of ou
Slide 5: President and Chief Executive Officer Todd Penegor
President and Chief Executive Officer Todd Penegor
Slide 6: Second quarter highlights
NA COMPANY-OPERATED RESTAURANT MARGIN INCREASES 370 BPS to 21.9% NA SYSTEM SRS INCREASE 0.4%; 2.6% ON A TWO-YEAR BASIS System optimization on track: all remaining markets to be sold in 2016 have been awarded Improvement of 550 bps in adj. ebitda margin to 26.8%* Company increases 2016 adj. ebitda an
Slide 7: QSR Traffic Momentum has Slowed in 2016
QSR Traffic Momentum has Slowed in 2016 Traffic % Change vs. Year Ago Source: The NPD Group / CREST â Total Day
Slide 8: QSR Builds Traffic Share Consecutive Years
QSR Builds Traffic Share 10 Consecutive Years Taste, Convenience and Affordability will always be the main drivers for use of QSRs Source: The NPD Group / CREST â Y/E June
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Slide 10: Price/Value Core LTO Balance Across the Menu
Price/Value Core LTO Balance Across the Menu
Slide 11: Delight every customer
Delight every customer. QUALITY IS OUR RECIPE » TREAT PEOPLE WITH RESPECT + DOTHERIGHT THING » PROFIT MEANS GROWTH + GIVE SOMETHING BACK 1
Slide 12: Chief Financial Officer Gunther Plosch
Chief Financial Officer Gunther Plosch
Slide 13: Second Quarter Financial Highlights
N.A. System SRS 0.4% 2.2% 2-Year 2.6% N.A. Co. Rest. Margin 21.9% 18.2% +370 bps G&A $61.1 $60.8 (0.5%) Adjusted EBITDA** $102.5 $104.3 (1.7%) Adjusted EBITDA Margin** 26.8% 21.3% +550 bps Adjusted EPS** $0.10 $0.08 25.0% $ Mils (except per share amounts) Second Quarter Financial Highlights 2016* 20
Slide 14: Q2 2016 vs. Q2 2015: Adjusted EBITDA
Q2 2016 vs. Q2 2015: Adjusted EBITDA 361 Fewer Company Restaurants (Unaudited) $ in millions
Slide 15: Q2 2016 vs. Q2 2015: Adjusted EPS
Q2 2016 vs. Q2 2015: Adjusted EPS (Unaudited)
Slide 16: 2016 Outlook
2016 Outlook Revising NA System SRS of 1.0 to 2.0% Commodity costs to decrease ~5 to 6% Company-operated restaurant margin of ~19.0% Reaffirming G&A expense of ~$245 million to $250 million Cash flows from operations of ~$185 million to $220 million Capital expenditures of ~$135 million to $145 mill
Slide 17: President and Chief Executive Officer Todd Penegor
President and Chief Executive Officer Todd Penegor
Slide 18: System Optimization Update
System Optimization Update System Optimization III On track to complete by the end of 2016 55 restaurants sold through Q2 Expect ~60% of remaining restaurants to be sold in Q3 Now expect total pre-tax proceeds of ~$435M Ongoing System Optimization Facilitated 13 franchisee-to-franchisee transfers vi
Slide 19: System Optimization Market Update
Shreveport Atlanta Raleigh-Durham Miami New Orleans Baton Rouge/Lafayette New York Chicago Virginia Beach System Optimization Market Update 2016 Q1 Q1 Q3 Q3 Q3 Q3 Q4 Q4 Q4
Slide 20: Reimaging Momentum Continues
Reimaging Momentum Continues Total System Annual Reimages & New Builds* Total System Cumulative Reimages & New Builds* ~26% of NA system Image Activated at the end of Q2 2016 * Counts include Franchise Reimages open or under construction
Slide 21: International Building Foundation for Growth
International Building Foundation for Growth Brazil First restaurant opened on July 14th Second restaurant opened on July 28th Joint venture with Wendy’s, a local partner and one of our largest U.S. franchisees Middle East Granted Development rights for Kingdom of Saudi Arabia, first restaurant plan
Slide 22: 2020 North America System Goals Are On Track!
2020 North America System Goals Are On Track! $2M 20% ≥1.3x 1,000 AUVs Restaurant Margins Sales to Investment Ratio New Restaurants 60% Total Reimaged Restaurants + (~500 Net) 2 New 2020 Company Goal: 38-40% Adjusted EBITDA Margin
Slide 23: Group Manager – Investor Relations Peter Koumas
Group Manager – Investor Relations Peter Koumas
Slide 24: 2016 Investor Relations Calendar: Key Dates
2016 Investor Relations Calendar: Key Dates August 26 RBC NDR (New York) September 12 Stifel Baltusrol Executive Summit (New Jersey) September 13 CL King Best Ideas Conference (New York) September 28 Wells Fargo Retail, Restaurant & Consumer Forum (Boston) September 29 Evercore NDR (Toronto) Novembe
Slide 25: Q&A
Q&A
Slide 26: Appendix
Appendix
Slide 27: Non-GAAP financial measures
In addition to the GAAP financial measures included in this presentation, the Company has included certain non-GAAP financial measures (i.e., adjusted EBITDA, adjusted EBITDA margin, adjusted earnings per share, adjusted tax rate and free cash flow). These non-GAAP financial measures exclude certain
Slide 28: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA from Continuing Operations In Thousands (Unaudited)
Slide 29: Reconciliation of Income and Diluted EPS to Adjusted EPS
Reconciliation of Income and Diluted Earnings Per Share from Continuing Operations to Adjusted Income and Adjusted Earnings Per Share from Continuing Operations In Thousands except per-share amounts (Unaudited)
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