Wendy's Company (the) · NASDAQ:WEN
Wendy's Company (the) — The Wendy's Company — Q2 2022 Earnings Presentation
25 slides from Wendy's Company (the)'s earnings presentation, Aug 10, 2022
Slide 1: Second Quarter 2022 Conference Call
Second Quarter 2022 Conference Call August 10, 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 Franchise Health Update Q2 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 reached double digits on a 2-year basis for 3rd consecutive quarter, exceeding expectations ▪ Significant restaurant margin improvement versus prior quarter ▪ Breakfast launch in Canada off to a strong start ▪ Continued to gain QSR burger morning meal traffic share i
Slide 7: Global SRS Momentum Accelerated in Q2
Global SRS Momentum Accelerated in Q2 ▪ Achieved record setting Global 2-year SRS of >21% ▪ International business delivered 5th consecutive quarter of double digit 1- and 2-year SRS ▪ Strong Q2 US sales results drove gains vs. competition ▪ Expect strong and balanced US marketing calendar to drive
Slide 8: Breakfast Competing Well Across US & Canada
Breakfast Competing Well Across US & Canada ▪ Canada breakfast launch off to strong start – sales in line with expectations ▪ Grew QSR burger morning meal traffic share* in the US for 3rd consecutive quarter ▪ Continue to expect US Breakfast sales growth of ~10% in 2022 ▪ Expect mix of innovation &
Slide 9: Global Digital Momentum Continued in Q2
Global Digital Momentum Continued in Q2 ▪ Global sales mix held strong at ~10% ▪ International digital sales mix landed at ~15% as outsized performance continues across key markets ▪ U.S. digital sales accelerated ~2.5% vs. Q1, achieving record quarterly sales and mixing at ~9% ▪ Total rewards membe
Slide 10: Global Restaurant Pipeline Remains Strong
Global Restaurant Pipeline Remains Strong • Restaurant pipeline remains strong in 2022 and beyond • Franchise recruiting & restaurant modernization efforts paying off • Lowering REEF unit expectations • Expect ~3% to 4% net unit growth in 2022 • Significant progress in solidifying near- and long-ter
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: Record Franchise Profits in 2021 Lay Strong Foundation for 2022
Record Franchise Profits in 2021 Lay Strong Foundation for 2022 13
Slide 14: Second Quarter Financial Results
Second Quarter Financial Results $ Mils (except per share amounts) 2022 2021 B/(W) Global Systemwide Sales Growth 5.6% 22.9% 2-Yr 28.5% Global System SRS 3.7% 17.4% 2-Yr 21.1% Company Restaurant Margin 14.5% 20.3% (580) bps G&A $61.6 $63.1 2.3% Adjusted EBITDA1 $132.9 $131.1 1.4% Adjusted EPS1 $0.24
Slide 15: 2022 Outlook Largely Unchanged
2022 Outlook Largely Unchanged Previous Updated Metric Outlook Outlook Global Systemwide Sales 6% to 8% No Change Growth Adjusted EBITDA $490M to $505M No Change Adjusted EPS $0.82 to $0.86 $0.84 to $0.88 Capital Expenditures $90M to $100M No Change Free Cash Flow $215M to $225M No Change THE WENDY'
Slide 16: 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% • Q3 Dividend of $0.125 Flexibility to Utilize Excess 3 Cash to Repurchase Shares and/or Reduce Debt THE WENDY'S COMPANY | 16
Slide 17: Kelsey Freed, Director – Investor Relations
Kelsey Freed Director – Investor Relations © Quality Is Our Recipe, LLC
Slide 18: Investor Relations Calendar
Investor Relations Calendar • August 16: Virtual NDR with Citi • August 17: NDR with Credit Suisse (Boston) • September 8: Goldman Sachs Conference (New York) • September 15: Virtual HQ Visit with RBC • September 22: Conference Call with Truist • September 29: NDR with Stifel (Toronto) • November 9:
Slide 19: Q&A
Q&A
Slide 20: Appendix
Appendix
Slide 21: 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 22: 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 | 22
Slide 23: Reconciliation of Net Income and Diluted EPS to Adjusted
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 | 23
Slide 24: 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 | 24
Slide 25: Slide 25