Wendy's Company (the) · NASDAQ:WEN
Wendy's Company (the) — The Wendy's Company — Q4 2021 Earnings Presentation
32 slides from Wendy's Company (the)'s earnings presentation, Mar 1, 2022
Slide 1: Fourth Quarter 2021 Conference Call
Fourth Quarter 2021 Conference Call March 1, 2022 © Quality Is Our Recipe, LLC
Slide 2: Greg Lemenchick
Greg Lemenchick Senior Director – Investor Relations & Corporate FP&A © 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 2021 Financial Results 2022 Outlook IR Calendar Q&A THE WENDY'S COMPANY | 4
Slide 5: Todd Penegor
Todd Penegor President & Chief Executive Officer © Quality Is Our Recipe, LLC
Slide 6: CEO Business Update
CEO Business Update ▪ Global 1- and 2-year SRS growth accelerated to double digits in 2021 ▪ 11th consecutive year of Global SRS growth ▪ Breakfast accelerated to 8.5% of US sales at the peak of the $1 Biscuit promotion ▪ Q4 Global digital mix grew to ~10% ▪ Significant full-year Company restaurant
Slide 7: 11 Years of Global Same-Restaurant Sales Growth
11 Years of Global Same-Restaurant Sales Growth FY 2021 SRS: 11.2% US: 9.2% 1-yr, 11.2% 2-yr Int’l: 17.6% 1-yr, 11.6% 2-yr 4.8% 4.7% 4.1% 10.0% 3.7% 3.6% 3.9% 3.2% 3.1% 3.1% 3.2% 2.9% 1.7% 1.5% 1.6% 1.5% 2.1% 1.0% 1.2% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 1-year SRS 2-year SRS THE WENDY
Slide 8: Gunther Plosch
Gunther Plosch Chief Financial Officer © Quality Is Our Recipe, LLC
Slide 9: Full Year Financial Highlights
Full Year Financial Highlights ▪ Global Systemwide Sales Growth: 11.9%1 ▪ ~2% Net Unit Growth ▪ Company Restaurant Margin: 16.7% ▪ Adjusted EBITDA: $467M2 ▪ Adjusted EPS: $0.822 ▪ Free Cash Flow: $263M2 1 Excludes the ~2% positive impact of the 53 rd week in 2020. 2 See reconciliation of non-GAAP fi
Slide 10: Fourth Quarter Financial Results
Fourth Quarter Financial Results $ Mils (except per share amounts) 2021 2020 B/(W) includes 53rd week1 Global System SRS 7.3% 4.7% 2-Yr 12.0% Company Restaurant Margin 14.5% 17.6% (300) bps G&A $64.4 $59.3 (8.5)% Adjusted EBITDA2 $102.7 $114.5 (10.3)% Adjusted EPS2 $0.16 $0.17 (5.9)% 1 Please note t
Slide 11: Todd Penegor
Todd Penegor President & Chief Executive Officer © Quality Is Our Recipe, LLC
Slide 12: Strategic Focus for 2022 Unchanged
Strategic Focus for 2022 Unchanged Investing in Accelerated Global Growth BUILD OUR BREAKFAST DIGITAL ACCELERATION EXPAND OUR FOOTPRINT DAYPART Fast Food Operational Good Done Right Excellence Done Right Restaurant Economic Model THE WENDY'S COMPANY | 12
Slide 13: Expecting Breakfast Acceleration Across the Globe
Expecting Breakfast Acceleration Across the Globe ▪ US Breakfast accelerated in 2021 ▪ Sales mix peaked at ~8.5% in Q4 ▪ Grew QSR burger morning meal traffic share* in Q4 ▪ Sales grew ~25% in FY 2021 ▪ Global breakfast acceleration in 2022 ▪ Expect weekly US breakfast sales of $3,000 to $3,500/resta
Slide 14: Global Digital Momentum is Strong Heading into 2022
Global Digital Momentum is Strong Heading into 2022 ▪ Global digital sales mix reached ~10% driven by both U.S. and International strength ▪ International sales mix reached 15%+ ▪ U.S. digital sales mix grew to ~9% by quarter end; 2021 YOY digital sales +75%* ▪ 2021 U.S. rewards members and active u
Slide 15: Global Footprint Poised for Step Change Growth in 2022
Global Footprint Poised for Step Change Growth in 2022 • Added 121, or ~2%, net restaurants in 2021 • UK plan remains on track 1,000th International Restaurant - UK • Expect 5-6% net new growth in 2022 • Committed to long term goal of 8,500 to 9,000 restaurants by YE 2025 REEF Delivery Kitchen THE W
Slide 16: Gunther Plosch
Gunther Plosch Chief Financial Officer © Quality Is Our Recipe, LLC
Slide 17: 2022 Outlook: Systemwide Sales Growth
2022 Outlook: Systemwide Sales Growth 6% to 8% Growth ~$12.5B THE WENDY'S COMPANY | 17
Slide 18: 2022 Outlook: Adjusted EBITDA Growth
2022 Outlook: Adjusted EBITDA Growth $490M to $505M $467M THE WENDY'S COMPANY | 18
Slide 19: 2022 Outlook: Free Cash Flow Growth
2022 Outlook: Free Cash Flow Growth ~In Line with Adj. EBITDA $263M $230M to $240M THE WENDY'S COMPANY | 19
Slide 20: 2022 Outlook
2022 Outlook Metric Outlook* Global Systemwide Sales Growth 6% to 8% Adjusted EBITDA $490M to $505M Adjusted EPS $0.87 to $0.91 Capital Expenditures $90M to $100M Free Cash Flow $230M to $240M *Does not include any impacts from the potential debt raise being evaluated by the Company THE WENDY'S COMP
Slide 21: Capital Allocation Policy Remains Unchanged
Capital Allocation Policy Remains Unchanged 1 Continue to • Company-operated footprint optimization through FL acquisition • US and Canadian breakfast advertising investments Invest in the • UK launch, development capital, and new restaurant incentives • Development & digital headcount investments B
Slide 22: Greg Lemenchick
Greg Lemenchick Senior Director – Investor Relations & Corporate FP&A © Quality Is Our Recipe, LLC
Slide 23: Wendy's to Host Virtual Investor Day
Wendy’s to Host Virtual Investor Day June 9, 2022 THE WENDY'S COMPANY | 23
Slide 24: Investor Relations Calendar
Investor Relations Calendar • March 8: JPM Conference (Las Vegas) • March 9: UBS Conference (Boston) • March 11: Virtual HQ Visit with Deutsche Bank • March 14: Virtual NDR with Guggenheim (New York) • May 11: Q1 Earnings Release & Conference Call • June 9: Virtual Investor Day THE WENDY'S COMPANY |
Slide 25: Q&A
Q&A
Slide 26: Appendix
Appendix
Slide 27: 53rd Operating Week Impacts
53rd Operating Week Impacts The fourth quarter and full-year 2020 results include the impact of a 53rd operating week, which affects all fourth-quarter and full year comparisons to 2021. The 53rd week resulted in the following impacts in 2020: • ~7% and ~2% increase to Global systemwide sales in the
Slide 28: 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 29: 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 | 29
Slide 30: Reconciliation of Net Income and Diluted Earnings Per Share
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 | 30
Slide 31: 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 | 31
Slide 32: Slide 32