Wendy's Company (the) · NASDAQ:WEN
Wendy's Company (the) — Investor Presentation (January 2012)
19 slides from Wendy's Company (the)'s investor presentation, Jan 30, 2012
Slide 1: Emil Brolick, President & Chief Executive Officer
EMIL BROLICK PRESIDENT & CHIEF EXECUTIVE OFFICER
Slide 2: Recipe to Win: Close-In Opportunities for Positive Impact
RECIPE TO WIN The Wendy’s Company Close-In Opportunities for Positive Impact
Slide 3: Recipe to Win: Close-In Opportunities
P RICE P RODUCT P ROMOTION Close-In Opportunities Aggressive but Responsible Functional…Functional/Emotional “Five-Star Athletes” RECIPE TO WIN P LACE P ERFORMANCE P EOPLE
Slide 4: Price...Customer Friendly...Check Building: Rebalancing Barbell Strategy
PRICE…Customer Friendly…Check Building The Wendy’s Company Rebalancing Barbell Strategy TODAY LOW HIGH FUTURE
Slide 5: Wendy's Transaction Check Distribution
The Wendy’s Company Wendy’s Transaction Check Distribution PRICE…Customer Friendly…Check Building 37% 21% 18% 24% $8.00> $6.01-8.00 $4.01-6.00 $4.00<
Slide 6: Wendy's Transaction Check Distribution
The Wendy’s Company Wendy’s Transaction Check Distribution PRICE…Customer Friendly…Check Building 37% 21% 18% 24% $8.00> $6.01-8.00 $4.01-6.00 $4.00< Every 10¢ increase in average check equals a 1.57% increase in sales
Slide 7: 2011 Sales Distribution and Check Index
The Wendy’s Company 2011 SALES DISTRIBUTION 2011 CHECK INDEX Pick-Up Window 67% 110 Carry-Out 14% 100 Dine-In 19% 123 PRICE…Customer Friendly…Check Building
Slide 8: Image Activation Restaurants: Distribution of Sales Growth
Dine-In 47% Carry-Out 37% Pick-Up Window 16% The Wendy’s Company Eight U.S. Image Activation Restaurants Distribution of Sales Growth PRICE…Customer Friendly…Check Building
Slide 9: Price to Offset Commodity Inflation
The Wendy’s Company 2011 CARRYOVER PRICE PRICE…to Offset Commodity Inflation 2012 COMMODITY INFLATION + + 2012 PRICE =
Slide 10: Shift to Zone Pricing vs. Three Region Pricing
SHIFT TO ZONE PRICING VS. THREE REGION PRICING The Wendy’s Company Significantly Raise the Science of Pricing Optimized for: Maximum Sales Maximum Profits Stable Customer Counts ASSIGNED TO 1 OF 9 ZONES INDIVIDUAL RESTAURANTS IMMEDIATE TRADE AREA Transactions Price/Cost Promotion Data Pricing Day/Ev
Slide 11: Integrating Message & Product Innovation: Core Innovation
The Wendy’s Company INTEGRATING MESSAGE & PRODUCT INNOVATION “FIVE-STAR QUALITY – THREE-STAR PRICE” CORE INNOVATION Hamburgers Chicken Salads Sides Beverages Protect, Grow & Build Equity Innovate & Regain Share Own It! Grow Leadership Leverage Unique Items Avoid “Me Too”
Slide 12: Integrating Message & Product Innovation: Step-Change Innovation
The Wendy’s Company INTEGRATING MESSAGE & PRODUCT INNOVATION “FIVE-STAR QUALITY – THREE-STAR PRICE” STEP-CHANGE INNOVATION Growth Areas Leverage Unique Capabilities Lead the Pack Honest Food… Honest Ingredients… Honest Preparation
Slide 13: Promotion...Creative Ad Campaign Chronology
PROMOTION…Creative Ad Campaign Chronology…There was Dave and then… 24 Ads 30 Ads 55 Ads 50 Ads 9 Ads 700+ Ads 2nd Qtr New Campaign 1989-2002 2004 2005-2006 2007 2008-2009 2009-2011 2012 Dave Mr. Wendy Do What Tastes Right Red Wig/ That’s Right Waaaay Better You Know When It’s Real Code Name: RED The
Slide 14: New Campaign Success Criteria
NEW CAMPAIGN SUCCESS CRITERIA GOAL Win the Hearts and Minds of Consumers Competing for share of mind, not just selling products HOW Tactically and Strategically Brilliant Creates emotional connection to “Big Brand,” gains trial of promoted idea Unique look, tone and feel…you will know it is We
Slide 15: National Marketing Calendar
National Marketing Calendar TODAY – “ELEVEN NATIONAL PILLARS” PROMOTION…Message IMPACT SCHEDULING LATE 2012 PROMOTIONAL SCHEDULING E Q U I T Y C O N T I N U I T Y P R I C E / V A L U E C O N T I N U I T Y The Wendy’s Company
Slide 16: Restaurant Social Media Index
a m o m = = ed 2 > - = Pr n \Réstaiirant News = Sets Now | Maia Kt | ContactUs | GYRSS | A Facebeck | E]Twiter NEWS BUSINESS FOOD A BEVERAGE INDUSTRYINSIGHTS | EVENTS VIDEO. -MAGAZINE RESOURCES Meet the Restaurant Social Media Index ‘THIRO QUARTER RSM TOP 100 RESULTS RESTAURAI tf Shake Shack t No la
Slide 17: Recent Digital Wins
R EC EN T D IG ITA L W IN S Created Twitter’s first-ever game show 400,000 consumer interactions & millions of impressions
Slide 18: Recent Digital Wins
R EC EN T D IG ITA L W IN S Most retweeted of 2011: a promoted Tweet by DTFA raised $50,000 for foster children.
Slide 19: Wrap-Up Thoughts
WRAP-UP THOUGHTS Wendy’s Iconic Brand with Significant Latent Brand Equities Clear brand vision… A CUT ABOVE Clear RECIPE TO WIN Growth platforms to deliver results Committed to delivering what we promise Move from significant adjustments and restructuring charges to a clear business and f