Wendy's Company (the) · NASDAQ:WEN
Wendy's Company (the) — The Wendy's Company — Q1 2023 Earnings Presentation
26 slides from Wendy's Company (the)'s earnings presentation, May 10, 2023
Slide 1: First Quarter 2023 Conference Call
First Quarter 2023 Conference Call May 10, 2023 © 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 Good Done Right Progress Franchise Health Update Q1 Financial Results 2023 & Long-Term 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 ▪ 6th consecutive quarter of double- digit Global SRS growth on a 2-year basis ▪ Global digital sales mix accelerated to over 12% in Q1 ▪ Over 250 bps year-over-year expansion in Company-operated restaurant margin ▪ 39 global restaurant openings in Q1 ▪ Fully committed to driving
Slide 7: Strong SRS Momentum Continued Throughout Q1
Strong SRS Momentum Continued Throughout Q1 .Q1 Global SRS 8.0% 1 Year, 10.4% 2 Year Q1 International SRS . 13.9% 1 Year, 28.0% 2 Year . . Q1 US SRS 7.2% 1 Year, 8.3% 2 Year . Held QSR Burger Dollar & Traffic Share* 7 *Source: The Circana LP/CREST®, 3 months ending March 2023 versus year ago
Slide 8: Plans in Place to Continue Driving SRS Momentum in Q2 and Beyond
Plans in Place to Continue Driving SRS Momentum in Q2 and Beyond ▪ Promoting products across a variety of price points and occasions ▪ Executing breakfast promotion and innovation playbook ▪ Driving our late-night business with dedicated media and operational excellence ▪ Continue to expect mid-sing
Slide 9: Global Digital Business Reached New Heights in Q1
Global Digital Business Reached New Heights in Q1 ▪ Global digital sales mix grew to over 12% ▪ International digital sales mix of nearly 19% driven by strength across all regions ▪ U.S. digital sales mix achieved over 11% and accelerated each month of Q1 ▪ Strong progress on 1:1 marketing capabilit
Slide 10: Global Net Unit Growth On Track to Achieve 2023 and Long-Term Outlook
First UK Drive-Thru Location Global Net Unit Growth On Track to Achieve 2023 and Long-Term Outlook • 39 global restaurant openings in Q1; on pace to achieve full year development goal • ~45% of 2023 pipeline open or under construction through Q1 • Continue to garner new and existing franchisee inter
Slide 11: Good Done Right Goals
Responsibly source our top 10 priority food categories in the U.S. and Canada. itt PEOPLE Increase the representation of underrepresented populations among our Company's leadership and management, as well as the diversity of our franchisees. I FOOTPRINT Benchmark, track and reduce our Scope 1, Scope
Slide 12: Delivering Accelerated Global Growth
DIGITAL ACCELERATION SRS FOOTPRINT MOMENTUM EXPANSION Delivering Accelerated GLOBAL GROWTH Restaurant Good Economic Model Done Right THE WENDY'S COMPANY | 12
Slide 13: Gunther Plosch, Chief Financial Officer
Gunther Plosch Chief Financial Officer © Quality Is Our Recipe, LLC
Slide 14: US and Canadian Franchisee Sales & Profit Above 2019
US and Canadian Franchisee Sales & Profit Above 2019 2022 US Franchise Economics 3-year Sales Growth: 3-year EBITDA $ Growth: US: ~18% US: ~2% Canada: ~24% Canada: ~11% Restaurant Economic Model THE WENDY'S COMPANY | 14
Slide 15: First Quarter Financial Results
First Quarter Financial Results $ Mils (except per share amounts) 2022 2023 B/(W) Global Systemwide Sales Growth 4.2% 10.0% 2-Yr 14.2% Global System SRS 2.4% 8.0% 2-Yr 10.4% US Company Restaurant Margin 12.0% UPDATE 14.7% 270 bps G&A $62.3 $62.3 Flat Adjusted EBITDA1 $106.9 $125.6 17.5% Adjusted EPS
Slide 16: Reaffirming 2023 & Long-Term Outlook Following a Strong First Quarter
Reaffirming 2023 & Long-Term Outlook Following a Strong First Quarter 2023 Outlook Global Systemwide Sales Growth: 6% to 8% Adjusted EBITDA: $530M to $540M Adjusted EPS: $0.95 to $1.00 Capital Expenditures: $75M to $85M Free Cash Flow: $265M to $275M 2024 to 2025 Outlook Global Systemwide Sales Grow
Slide 17: 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 share Expect $1 per share dividend for FY 20231 3 Utilize Excess Cash to Repurchase Shares and/or Reduce Debt $500M Share Repurchase
Slide 18: Kelsey Freed, Director – Investor Relations
Kelsey Freed Director – Investor Relations © Quality Is Our Recipe, LLC
Slide 19: Investor Relations Calendar
Investor Relations Calendar • May 23: NDR with Guggenheim (Boston) • May 24: NDR with JPMorgan (New York) • June 13: Oppenheimer Conference (Virtual) • June 14: Evercore Conference (Virtual) • June 20: Virtual HQ Visit with RBC • June 21: Conference Call with BTIG • August 9: Q2 2023 Earnings Releas
Slide 20: Q&A
Q&A
Slide 21: Appendix
Appendix
Slide 22: 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 23: Reconciliations of Net Income to Adjusted EBITDA and Revenues to Adjusted Revenues
In Thousands (Unaudited) Reconciliations of Net Income to Adjusted EBITDA and Revenues to Adjusted Revenues THE WENDY'S COMPANY | 23
Slide 24: Reconciliation of Net Income and Diluted Earnings Per Share 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 | 24
Slide 25: 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 | 25
Slide 26: Slide 26