Wendy's Company (the) · NASDAQ:WEN
Wendy's Company (the) — Wendy's/Arby's Group — Corporate Update (January 2011)
32 slides from Wendy's Company (the)'s corporate update, Jan 27, 2011
Slide 1: Wendy's Breakfast Update
1 Wendy’s Breakfast Update David Karam President
Slide 2: 2
2
Slide 3: Breakfast Program
3 Breakfast Program Near-term Success and Long-term Sustainability Our strategy Market test status Future plans
Slide 4: Opportunity
OPPORTUNITY - SIGNIFICANT
Slide 5: Breakfast Opportunity
5 ~ 23% of Traffic $7 bil Late Night $42 bil Core $13 bil Breakfast QSR Annual Sales - Hamburger Breakfast Opportunity
Slide 6: QSR Traffic - Breakfast vs. Dinner
6 Breakfast QSR Traffic - Breakfast vs. Dinner Breakfast Opportunity +13% Dinner -8%
Slide 7: Breakfast - Our Opportunity
7 Breakfast - Our Opportunity — Wendy’s is only major QSR Hamburger chain not serving breakfast — AUVs $1.4 million without breakfast — National implementation of breakfast can add $140,000-150,000 to AUVs
Slide 8: Fresh Made Breakfast
EC FRESH MADE = BREAKFAST
Slide 9: Key Performance Measures
1 KEY PERFORMANCE MEASURES \\ Y ——— ae SS ZS OUR (5s Ss
Slide 10: Most extensive research in Wendy's history
10 Most extensive research in Wendy’s history
Slide 11: Made fresh for you: The Real Choice in Breakfast
11 “made fresh for you” The Real Choice in Breakfast
Slide 12: Three phases of the breakfast program
12 — Phase 1 - developing and testing menu — Phase 2 - improving profitability and operations — Phase 3 - expanding to additional markets
Slide 13: 13
13
Slide 14: Artisan Egg Sandwich
14 Artisan Egg Sandwich
Slide 15: Buttermilk Biscuits, Multi-grain Tortillas, Sourdough Panini
15 Buttermilk Biscuits Multi-grain Tortillas Sourdough Panini
Slide 16: Warm Oatmeal Bars, Home-style Potatoes
16 Warm Oatmeal Bars Home-style Potatoes
Slide 17: 100% Arabica Beans
17 100% Arabica Beans
Slide 18: Market test cities
18 Pittsburgh Kansas City Phoenix Shreveport
Slide 19: Comprehensive Marketing Approach
19 Comprehensive Marketing Approach TV, Radio, Online, Print & Billboards
Slide 20: Consumer Validation
20 Consumer Validation 2010 Market Test Results — Overall exceptional ratings from first-time visitors — High repurchase intent indicated
Slide 21: Financial Results: 2010 Market Test Results
21 — Sale and transactions up 30-40% — Identified key demographic and geographic factors that drive breakfast sales Financial Results 2010 Market Test Results
Slide 22: Fresh Made Breakfast
FRESH MADE BREAKFAST
Slide 23: Wendy's Breakfast Update
23 Wendy’s Breakfast Update Steve Farrar Chief Operating Officer
Slide 24: Three phases of the breakfast program
24 — Phase 1 - developing and testing menu — Phase 2 - improving profitability and operations — Phase 3 - expanding to additional markets
Slide 25: Phase 2: Improving Profitability and Operations
25 Phase 2 Improving Profitability and Operations — Refining financial model to heighten breakfast margins — Codifying operational procedures for efficiency
Slide 26: Phase 2: Improving Profitability and Operations
26 Phase 2 Improving Profitability and Operations
Slide 27: Phase 2: Improving Profitability and Operations
27 — Coffee and other new products — Menuboard merchandising improvements for combos and beverages Phase 2 Improving Profitability and Operations
Slide 28: Phase 3: Consumer Experience
28 Phase 2 Consumer Experience
Slide 29: Three phases of the breakfast program
29 — Phase 1 - developing and testing menu — Phase 2 - improving profitability and operations — Phase 3 - expanding to additional markets
Slide 30: 2011 Breakfast Expansion Timeline
30 1,000 STORES NEW MENU LAUNCH LOUISVILLE & SAN ANTONIO ADDITIONAL MARKETS 2011 Breakfast Expansion Timeline Q4 Q2 Q3 Q1 YE CONVERT 300 OLD MENU STORES
Slide 31: Key Performance Measures
1 KEY PERFORMANCE MEASURES \\ Y ——— ae SS ZS OUR (5s Ss
Slide 32: Fresh Made Breakfast
FRESH MADE BREAKFAST
Wendy's/Arby's Group — Corporate Update (January 2011) on 6ix