Wendy's Company (the) · NASDAQ:WEN

Wendy's Company (the) — The Wendy's Company — Q3 2023 Earnings Presentation

23 slides from Wendy's Company (the)'s earnings presentation, Nov 2, 2023

  1. Slide 1: Third Quarter 2023 Conference Call

    Third Quarter 2023 Conference Call November 2, 2023 © Quality Is Our Recipe, LLC

  2. Slide 2: Kelsey Freed, Director – Investor Relations

    Kelsey Freed Director – Investor Relations © Quality Is Our Recipe, LLC

  3. 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

  4. Slide 4: Agenda

    Agenda Business Update Q3 Financial Results 2023 & Long-Term Outlook IR Calendar Q&A THE WENDY'S COMPANY | 4

  5. Slide 5: Todd Penegor, President & Chief Executive Officer

    Todd Penegor President & Chief Executive Officer © Quality Is Our Recipe, LLC

  6. Slide 6: CEO Business Update

    CEO Business Update ▪ Global 2-year SRS accelerated vs. prior quarter ▪ Global digital sales mix accelerated vs. prior quarter, reaching 13% ▪ Continued year-over-year expansion in US Company- operated restaurant margin ▪ 152 global restaurant openings year-to-date through Q3 and 100% of 2023 develo

  7. Slide 7: Q3 SRS Trajectory Bolstered by Successful Innovations and Promotions

    Q3 SRS Trajectory Bolstered by Successful Innovations and Promotions Strong Ownable Breakfast Late Night Operations Platforms Top 5 in Mid-teens Loaded Nacho, 2 for $3 Biggie Service Time, sales growth Q3 2023 Frosty Innovation, Bundles drove Order Accuracy, year-over-year and BOGO $1 meaningful sal

  8. Slide 8: Global Digital Business Benefited from Record Loyalty Gains in Q3

    Global Digital Business Benefited from Record Loyalty Gains in Q3 ▪ Global digital sales mix accelerated to 13% ▪ Global digital sales grew 30% year-over-year vs. 25% in Q2 ▪ International achieved >18% digital sales mix ▪ U.S. digital sales mix grew to >12% ▪ U.S. monthly active users reached >5 mi

  9. Slide 9: Achieved Significant Progress Towards Solidifying Long-Term Development Pipeline

    First UK Drive-Thru Location Achieved Significant Progress Towards Solidifying Long-Term Development Pipeline 2023 ▪ 152 global restaurant openings year-to-date through Q3 ▪ 100% of 2023 development pipeline open or under construction, supporting ~2% net unit growth goal 2024-2025 ▪ Significant new

  10. Slide 10: Delivering Meaningful Global Growth

    DIGITAL ACCELERATION SRS FOOTPRINT MOMENTUM EXPANSION Delivering Meaningful GLOBAL GROWTH Restaurant Good Economic Model Done Right THE WENDY'S COMPANY | 10

  11. Slide 11: Gunther Plosch, Chief Financial Officer

    Gunther Plosch Chief Financial Officer © Quality Is Our Recipe, LLC

  12. Slide 12: Third Quarter Financial Results

    Third Quarter Financial Results $ Mils (except per share amounts) 2022 2023 B/(W) Global Systemwide Sales Growth 8.9% 4.8% 2-Yr 13.7% Global System SRS 6.9% 2.8% 2-Yr 9.7% US Company Restaurant Margin 14.8% UPDATE 15.6% 80 bps G&A $62.5 $59.3 5.1% Adjusted EBITDA1 $134.5 $139.2 3.5% Adjusted EPS1 $0

  13. Slide 13: Tightening 2023 Outlook, Reaffirming Long-Term Outlook

    Tightening 2023 Outlook, Reaffirming Long-Term Outlook 2023 Outlook Global Systemwide Sales Growth: 6% to 7% Previous: 6% to 8% Adjusted EBITDA: $530M to $540M Unchanged Adjusted EPS: $0.95 to $1.00 Unchanged Capital Expenditures: $80M to $85M Previous: $75M to $85M Free Cash Flow: $265M to $275M Un

  14. Slide 14: Capital Allocation Policy Remains Unchanged

    Capital Allocation Policy Remains Unchanged 1 Continue to Invest in the Business for Growth 2 Sustain an Attractive Dividend Quarterly dividend rate held at $0.25 per share1 Achieved expectation of $1 per share dividend for FY 2023 3 Utilize Excess Cash to Repurchase Shares and/or Reduce Debt $500M

  15. Slide 15: Kelsey Freed, Director – Investor Relations

    Kelsey Freed Director – Investor Relations © Quality Is Our Recipe, LLC

  16. Slide 16: Investor Relations Calendar

    Investor Relations Calendar • November 15: NDR with Barclays (NYC) • November 16: Stephens Conference (Nashville) • November 27: Virtual HQ Visit with KeyBanc • December 11: NDR with TD Cowen (Virtual) • February 15, 2024: Q4 2023 Earnings Release & Conference Call THE WENDY'S COMPANY | 16

  17. Slide 17: Q&A

    Q&A

  18. Slide 18: Appendix

    Appendix

  19. Slide 19: 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, free cash flow conversion and

  20. Slide 20: 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 | 20

  21. Slide 21: 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 | 21

  22. Slide 22: 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 | 22

  23. Slide 23: Slide 23

The Wendy's Company — Q3 2023 Earnings Presentation on 6ix