Slide 1: Third Quarter 2013 Conference Call
Third Quarter 2013 Conference Call © 2013 Oldemark LLC November 7, 2013 Exhibit 99.1
Slide 2: John Barker, Chief Communications Officer
JOHN BARKER 2 © 2013 Oldemark LLC Chief Communications Officer
Slide 3: Today's Agenda
Today’s Agenda CEO Overview Emil Brolick Financial Update Q&A Todd Penegor
Slide 4: Emil Brolick, President & CEO
EMIL BROLICK 5 5 © 2013 Oldemark LLC President & CEO
Slide 5: System Optimization
© 2013 Oldemark LLC SYSTEM OPTIMIZATION PROCEEDING AS PLANNED CONFIDENT IN 4Q; RAISING 2013 EARNINGS OUTLOOK BRAND TRANSFORMATION MOMENTUM CONTINUES STRONG QUARTER OF SALES AND EARNINGS GROWTH IMAGE ACTIVATION PROGRESSING
Slide 6: Q3 2013 Highlights
Q3 2013 Highlights +17% +$0.06 5.9% 2-year +170bps Adjusted EBITDA* $98.7 mil vs. $84.5 mil Adjusted EPS* $0.08 vs. $0.02 N.A. Rest. Margin 15.6% vs. 13.9% Co.-Op. SSS 3.2% vs. 2.7% *See reconciliation of Adjusted EBITDA and Adjusted EPS in the appendix.
Slide 7: Brand Vision: New QSRs vs Traditional QSRs
8 HIGH LOW FUNCTIONAL EMOTIONAL BRAND VISION NEW QSRs TRADITIONAL QSRs EXPERIENCE
Slide 8: Regaining Heritage of Product Innovation
Regaining Heritage of Product Innovation
Slide 9: Portabella Mushroom Burger
Por. Abella i ADE i Portabella
Slide 10: Executing the High-Low Strategy
PREMIUM PRICE / VALUE Executing the High-Low Strategy
Slide 11: Promotion
Slide 12: Ultimate source of differentiation
14 Ultimate source of differentiation
Slide 13: Ultimate source of differentiation
Ultimate source of differentiation wendys.com LinkedIn
Slide 14: Fastest Drive-Thru in QSR
Fastest Drive-Thru in QSR Source: QSR Magazine’s 2013 Drive-Thru Performance Study Average Drive - Thru Time in Seconds
Slide 15: Image Activation: New QSR Experience
17 IMAGE ACTIVATION New QSR Experience
Slide 16: System Optimization: Selling Restaurants to Franchisees
SYSTEM OPTIMIZATION Selling 425 Restaurants to Franchisees SHAREHOLDER VALUE EFFICIENCY OPERATIONAL EFFECTIVENESS GROWTH
Slide 17: Brand Relevance Drives Economic Model Relevance
Brand Relevance Drives Economic Model Relevance
Slide 18: Todd Penegor, Chief Financial Officer
© 2013 Oldemark LLC TODD PENEGOR 21 Chief Financial Officer
Slide 19: Image Activation Continues to Evolve
Image Activation Continues to Evolve 22 Core Remodel Costs* * Does not include deferred maintenance $1,200 $800 $650 $550
Slide 20: Standard Design vs Image Activation
STANDARD DESIGN IMAGE ACTIVATION New QSR Experience
Slide 21: Expect System Optimization to Produce Higher Quality Earnings
Expect System Optimization to Produce Higher Quality Earnings Royalties $25 M Rent $20 M G&A $30 M Restaurant EBITDA $75 M EBITDA Lost EBITDA Gained = * Estimates based on Company’s current outlook.
Slide 22: Q3 2013 Highlights
Q3 2013 Highlights N.A. Company Restaurant Margin +170 bps Q3 2013 15.6% Q3 2012 13.9% Q3 2013 North America Same-Store Sales 1-Year 2-Year Company-Operated Franchise 3.1% 6.0% 3.2% 5.9% N.A. Company Restaurant Margin +170 bps Q3 2013 15.6% Q3 2012 13.9%
Slide 23: Q3 2013 Financial Summary
Q3 2013 Financial Summary Q3 Q3 % Change Sales 558.0 $ 558.3 $ -0.1% Franchise revenues 82.8 78.0 6.2% Total revenues 640.8 $ 636.3 $ 0.7% Adjusted EBITDA* 98.7 $ 84.5 $ 16.8% ($ in millions) (Unaudited) *See reconciliation of Adjusted EBITDA in the appendix.
Slide 24: Q3 2013 Financial Summary
Q3 2013 Financial Summary Q3 Q3 $ Change Adjusted EPS* 0.08 $ 0.02 $ 0.06 $ Reported EPS (0.00) $ (0.07) $ 0.07 $ (Unaudited) *See reconciliation of Adjusted EPS in the appendix.
Slide 25: Solid Four Quarters Earnings
Solid Four Quarters Earnings Q4 Q1 Q2 Adjusted EBITDA Adjusted EPS Q3 $98.7* Actual Prior Year % Change $102.1 $77.3 $95.9 $84.5 $89.1 $63.9 $80.9 +17% +15% +21% +19% $0.08* Actual Prior Year % Change $0.08 $0.03 $0.09 $0.02 $0.05 $0.01 $0.04 +300% +60% +200% +125% * See reconciliation of Adjusted E
Slide 26: YTD 2013 Cash Flow Highlights
YTD 2013 Cash Flow Highlights ($ in millions) YTD 2013 YTD 2012 Cash flow from operations 252.7 $ 124.6 $ Capital expenditures 130.8 126.3 Beginning cash balance 453.4 $ 475.2 $ Change in cash 60.1 (21.6) Ending cash balance 513.4 $ 453.6 $
Slide 27: Selected Balance Sheet Highlights
Selected Balance Sheet Highlights ($ in millions) Cash $ Senior Debt 1,429 $ Capital Leases and Other Debt Total Debt 1,472 $ TTM Adjusted EBITDA $ Total Debt / TTM Adjusted EBITDA 3.9x Net Debt / TTM Adjusted EBITDA 2.6x Sept. 29, 2013
Slide 28: Raising 2013 Outlook
Raising 2013 Outlook Adjusted EBITDA: Approximately $365 million Adjusted EPS: Approximately $0.25 Estimates based on Company’s current outlook.
Slide 29: System Optimization
© 2013 Oldemark LLC SYSTEM OPTIMIZATION DRIVING IMPROVED EARNINGS QUALITY HIGH-QUALITY Q3 DRIVEN BY SSS GROWTH SOLID MOMENTUM; RAISING 2013 EARNINGS OUTLOOK CONFIDENT IN LONG-TERM OUTLOOK
Slide 30: John Barker, Chief Communications Officer
© 2013 Oldemark LLC JOHN BARKER 34 Chief Communications Officer
Slide 31: Meg Nollen, SVP Strategy and Investor Relations
© 2013 Oldemark LLC MEG NOLLEN 35 Senior Vice President Strategy and Investor Relations
Slide 32: Investor Relations Calendar
Investor Relations Calendar Events Nov. 13: Image Activation tour in Dublin (host: Stephens) 2014 Events Jan. 13: ICR Conference – Preliminary 2013 Earnings and 2014 Guidance
Slide 33: Q&A
Q&A
Slide 34: Appendix
Appendix
Slide 35: Reconciliation of Adjusted EBITDA to Net (Loss) Income
Reconciliation of Adjusted EBITDA from Continuing Operations to Net (Loss) Income Attributable to The Wendy's Company (In Thousands) (Unaudited) Three Months Nine Months Adjusted EBITDA from continuing operations $ 98,737 $ 84,491 $ 278,122 $ 237,445 Less: Depreciation and amortization (44,325) (41,
Slide 36: Reconciliation of Adjusted Income and Adjusted EPS
Reconciliation of Adjusted Income and Adjusted Earnings Per Share from Continuing Operations to Net (Loss) Income and Earnings Per Share Attributable to The Wendy's Company (a) Adjusted earnings per share amounts for the three months ended September 29, 2013 and the three and nine months ended Septe