Slide 1: First-Quarter 2016 Conference Call
© 2015 Quality Is Our Recipe, LLC First-Quarter 2016 Conference Call May 11, 2016 Exhibit 99.1
Slide 2: Liliana Esposito, Chief Communications Officer
© 2015 Quality Is Our Recipe, LLC LILIANA ESPOSITO Chief Communications Officer
Slide 3: Today's Agenda
Today’s Agenda First Quarter Update Todd Penegor President & Chief Financial Officer CFO Introduction Gunther Plosch Incoming Chief Financial Officer Q&A
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Slide 5: 1968-2016 David Poplar
1968-2016 David Poplar
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Slide 7: Todd Penegor, President and Chief Financial Officer
© 2015 Quality Is Our Recipe, LLC TODD PENEGOR President and Chief Financial Officer
Slide 8: First Quarter Highlights
© 2015 Quality Is Our Recipe, LLC NA COMPANY-OPERATED RESTAURANT MARGIN INCREASES 250 BPS TO 17.2% SYSTEM OPTIMIZATION, IMAGE ACTIVATION, NEW RESTAURANT DEVELOPMENT ON TRACK Q1 NA SYSTEM SRS OF 3.6%; TWO-YEAR SRS OF 6.8% HIGHEST IN 10+ YEARS COMPANY RAISES 2016 ADJ. EPS OUTLOOK TO $0.38 TO $0.40 COM
Slide 9: Long-Term Growth Drivers
Long-Term Growth Drivers SRS Acceleration (~3% System Growth) N.A. Net Restaurant Development (~500 Net New Restaurants) International Expansion (Establish Foundation for Accelerated Growth) 2016 & Beyond 2017 & Beyond 2019 & Beyond
Slide 10: It's Called a Single
IT’S CALLED A “SINGLE,” ELICIOUS sikeesic BUT IT'S SO MUCH SQUARE PATTY. arHine, PECAUSE err aes US Hi I's | LL BEER ais neemetene CLOSE TO OUR Fe OUR NEW RESTAURANTS SO a. ‘ IT’S DELIVERED FRESH, Hp EE VN. NEVER FROZEN. ORIGINAL RECIPE. MAKING THEN YOU'VE GOT ALL OF THE YOUR Bgl HAMBURGER HOT OFF T
Slide 11: Balance Across the Menu
Balance Across the Menu Price/Value Core LTO
Slide 12: Customers Are Noticing the Stronger Wendy's
Customers Are Noticing the Stronger Wendy’s +25% +12% +16% Source: Wendy’s Brand Health Tracking, Q1 2016 vs.Q1 2015 High Quality Food Worth What You Pay Modern and Up To Date Restaurants
Slide 13: First Quarter Financial Highlights
N.A. System SRS 3.6% 3.2% 2-Year 6.8% N.A. Co. Rest. Margin 17.2% 14.7% +250 bps G&A $64.6 $59.7 (8.2%) Adjusted EBITDA** $98.1 $80.8 21.4% Adjusted EBITDA Margin** 25.9% 17.9% +800 bps Adjusted EPS** $0.11 $0.06 83.3% First Quarter Financial Highlights $ Mils (except per share amounts) 2016* 2015*
Slide 14: Q1 2016 vs. Q1 2015: Adjusted EBITDA
Q1 2016 vs. Q1 2015: Adjusted EBITDA * * Excludes ~$3M of Bakery EBITDA (Unaudited) $ in millions Q1 2015 Restaruant EBITDA (incl IA) $81 $10 Lease Buyout $7 ($16) ($5) $21 Disposed Restaurant EBITDA (Sys Op) Q1 2016 G&A $98 Royalties, Franchise Fees & Net Rental Income 375 Fewer Company Restaurant
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Slide 16: Committed to Returning Cash to Shareholders
Committed to Returning Cash to Shareholders Ended Q1 with $313 million of cash Repurchased 4.9 Million shares for $48.2 Million in Q1 Approximately $308 Million remains against $1.4 Billion share repurchase authorization Remain committed to utilize remaining authorization as proceeds come in from Sy
Slide 17: System Optimization Update
System Optimization Update System Optimization III • On track to complete by the end of 2016 • 55 restaurants sold in Q1 • Continue to expect pre-tax proceeds of $400-$475M • Expect Company ownership of ~5% at YE Ongoing System Optimization • Facilitated 113 franchisee-to-franchisee transfers via “B
Slide 18: Reimaging Momentum Continues
Reimaging Momentum Continues 10 74 308 794 1,313 1,853 Total System Annual Reimages & New Builds* Total System Cumulative Reimages & New Builds* 10 64 234 486 519 540 ~24% of NA system Image Activated at the end of Q1 2016 * Counts include Franchise Reimages open or under construction 2016E 2016E
Slide 19: Compelling Reimaging Economics
Compelling Reimaging Economics Mid-Single Digit to Low-Double Digit Sales Lift Minimal Closure Time ~70-80% of Sales Retained During Closure Time Profit Flow Through 40-50%** Optional Upgrades to Tailor to Trade Area $300K US Investment* $500K US Investment* STANDARD REFRESH * Does not include defer
Slide 20: 2020 North America System Goals Are On Track
2020 North America System Goals Are On Track! $2MM 20% 1.3x 1,000 60% + BRAND RELEVANCE ECONOMIC MODEL RELEVANCE AUVs Restaurant Margins Sales to Investment Ratio New Restaurants Total Reimaged Restaurants Achievement requires two growth drivers: (~500 Net)
Slide 21: Gunther Plosch, Incoming Chief Financial Officer
© 2015 Quality Is Our Recipe, LLC GUNTHER PLOSCH Incoming Chief Financial Officer
Slide 22: Investor Relations Contact
© 2015 Quality Is Our Recipe, LLC Peter Koumas Peter.Koumas@wendys.com (614) 764 - 8478 Manager – Investor Relations
Slide 23: 2016 Investor Relations Calendar: Key Dates
2016 Investor Relations Calendar: Key Dates May 20 Kansas City (SunTrust) June 6 CFO Reception (New York) June 7 Goldman Sachs (New York) June 8 Stephens (New York) June 13-14 Los Angeles, Pasadena, Santa Monica (Guggenheim – debt / CL King – equity) August 10 2Q earnings release
Slide 24: Q&A
Q&A
Slide 25: Appendix
Appendix
Slide 26: Reconciliation of Income to Adjusted EBITDA from Continuing Operations
Reconciliation of Income from Continuing Operations to Adjusted EBITDA from Continuing Operations In Thousands (Unaudited)
Slide 27: Reconciliation to Adjusted Income and 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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