Slide 1: Fourth Quarter 2011 Earnings Call
March 1, 2012 ©2012 Oldemark LLC Fourth Quarter 2011 Earnings Call Exhibit 99.1
Slide 2: John Barker, Chief Communications Officer
JOHN BARKER CHIEF COMMUNICATIONS OFFICER
Slide 3: Today's Agenda
TODAY’S AGENDA The Wendy’s Company Financial Update Steve Hare CEO Overview Emil Brolick Q&A Session
Slide 4: Forward-Looking Statements and Non-GAAP Financial Measures
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 not historical facts, including information concerning possible or assumed future results of ou
Slide 5: Steve Hare, Chief Financial Officer
STEVE HARE CHIEF FINANCIAL OFFICER
Slide 6: Q4 2011 Financial Highlights
Q4 2011 Financial Highlights Company-owned +5.1% Franchise +4.2% Systemwide +4.4% Q4 2011 15.0% Q4 2010 14.0% +100 bps * See reconciliation of Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) in the appendix . Q4 2011 $80.9 million Q4 2010 $73.2 million Q4 2011 N.A. S
Slide 7: Slide 7
Slide 8: 2011 Full-Year Highlights
2011 Full-Year Highlights ($ in Millions) 2011 2010 Better/ (Worse) Sales 2,126.6 $ 2,079.1 $ 47.5 $ Franchise revenues 304.8 296.3 8.5 Total revenues 2,431.4 $ 2,375.4 $ 56.0 $ Adjusted EBITDA* 331.1 $ 341.9 $ (10.8) $ (Less) plus: Transaction related and other costs (45.7) - (45.7) Arby's indirect
Slide 9: Slide 9
Slide 10: 2011 Income from Continuing Operations and Special Items
2011 Income from Continuing Operations and Special Items ($ in Millions, except per share amounts) per share per share Adjusted income from continuing operations and adjusted earnings per share* 62.1 $ 0.15 $ 71.7 $ 0.17 $ (Less) plus: Arby's transaction related and other costs (28.5) (0.07) - - Imp
Slide 11: 2011 Cash Flow
2011 Cash Flow ($ in Millions) 2011 Cash flow from operations 246.7 $ Capital expenditures (146.8) Restaurant acquisitions (11.2) Proceeds from dispositions, net 104.9 Repurchases of common stock (157.6) Dividends paid (32.4) Other financing / investing activities (2.2) Net cash flow before debt pay
Slide 12: Slide 12
Slide 13: 2011 Consolidated Debt
2011 Consolidated Debt ($ in Millions) Senior Debt 1,327.9 $ Capital Leases and Other Debt 29.1 Total Debt 1,357.0 Less: Cash and Cash Equivalents 475.2 Net Debt 881.8 $ 2011 Adjusted EBITDA* 331.1 $ Total Debt / 2011 Adjusted EBITDA* 4.1x Net Debt / 2011 Adjusted EBITDA* 2.7x Y/E 2011 * See reconci
Slide 14: Slide 14
Slide 15: Slide 15
Slide 16: 2012 Outlook
2012 OUTLOOK The Wendy’s Company Company-Operated Same-Store Sales 2 to 3% Company-Operated Restaurant Margin Flat to +50 bps Commodity Basket Increase 115 to 145 bps Adjusted EBITDA $335 to $345 million
Slide 17: 2012 Capital Expenditures
2012 Capital Expenditures The Wendy’s Company Investing to increase long-term shareholder value New Units $40 Remodels Restaurant Equipment/Maintenance Product Development Technology Other Total Estimated Capex $225 $ IN MILLIONS
Slide 18: Financial Strategies and Adjusted EBITDA Growth Rate
Breakfast Image Activation: New North America Business Improvement Financial Strategies Image Activation: Remodels Int’l* The Wendy’s Company * International Growth (outside of North America) 2012 Low-single digit Adjusted EBITDA growth rate 2013 & Beyond High-single to low-double digit Adjusted EBI
Slide 19: Emil Brolick, President & Chief Executive Officer
EMIL BROLICK PRESIDENT & CHIEF EXECUTIVE OFFICER
Slide 20: Wendy's Recipe to Win
The Wendy’s Company WENDY’S RECIPE TO WIN
Slide 21: A Cut Above: Brand Vision
A CUT ABOVE A CUT ABOVE Foundation of Recipe to Win BRAND VISION Foundation of Recipe to Win BRAND VISION
Slide 22: A Cut Above: Why It Will Work
A CUT ABOVE Why it will work Reimaging the Restaurants Reimaging the People Reimaging the Experience Reimaging the Food Reimaging the Brand Communications
Slide 23: A Cut Above: A Quick Casual Experience at a QSR Price
A CUT ABOVE A Quick Casual Experience at a QSR Price!
Slide 24: Image Activation
IMAGE ACTIVATION Contemporizing Wendy’s is key to growth Moves us from a functional to an emotional experience Makes other Ps work better P LACE The Wendy’s Company
Slide 25: Traditional, Ultra-Modern, Urban, Contemporary Designs
TRADITIONAL ULTRA-MODERN URBAN CONTEMPORARY
Slide 26: Image Activation Strategy
Image Activation Strategy 2011 Initial 10 remodels • Customer feedback very positive • Sales exceeding expectations 2012 50 remodels • $750 to $850K investment • Targeting 15% ROI • Develop financing sources for franchisees 20 new restaurants 2013 and beyond Accelerate growth • Value-engineered inve
Slide 27: Improving Reliability and Predictability
IMPROVING RELIABILITY AND PREDICTABILITY In each Image Activation restaurant: The Wendy’s Company P EOPLE Re-interview staff Change leadership if needed Focus on “Five-Stars” / hire exceptional new employees
Slide 28: Win with Five-Star Athletes
Win with “Five-Star Athletes”
Slide 29: Restaurant Operating Levels
RESTAURANT OPERATING LEVELS U.S. Company and Franchise Restaurants The Wendy’s Company 2008 2011 2008 2011 A & B LEVEL F LEVEL P ERFORMANCE 83.5% 32.5% 24.8% 0.6%
Slide 30: Slide 30
Slide 31: Promotion
P ROMOTION Message Creative Media The Wendy’s Company
Slide 32: Promotion: Creative and Ad Campaign Chronology
PROMOTION…Creative Dave Mr. Wendy Do What Tastes Right Red Wig/ That’s Right Waaaay Better You Know When It’s Real Code Name: RED Town of Dublin 2 nd Qtr New Campaign Ad Campaign Chronology…There was Dave and then… 24 Ads 30 Ads 55 Ads 50 Ads 9 Ads 700+ Ads 1989-2002 2004 2005-2006 2007 2008-2009 20
Slide 33: 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 Wendy’
Slide 34: Product
The Wendy’s Company P RODUCT Successful launch of new core product in 2011
Slide 35: Product: 2012 Highlights
PREMIUM HAMBURGER TASTES PREMIUM SEASONAL SALAD NEW NEWS ON A CLASSIC NEW TWIST ON NATURAL CUT FRIES 2012 HIGHLIGHTS The Wendy’s Company PREMIUM HAMBURGER TASTES PREMIUM SEASONAL SALAD NEW NEWS ON A CLASSIC NEW TWIST ON NATURAL CUT FRIES P RODUCT 2012 HIGHLIGHTS
Slide 36: Differentiated Menu Offerings
DIFFERENTIATED MENU OFFERINGS FRESH INGREDIENTS AND FRESH PREPARATION SANDWICHES BEVERAGES SIDES The Wendy’s Company Consumers rate Wendy’s breakfast products notably higher than the competition’s P RODUCT
Slide 37: Breakfast
The Wendy’s Company BREAKFAST OPERATIONALLY SUCCESSFUL breakfast business Committed to earning our share of the Able to execute at various volumes among our best Operational attribute scores at breakfast are P RODUCT
Slide 38: Breakfast Expansion – 2012
BREAKFAST EXPANSION – 2012 The Wendy’s Company New market in Northeast Adding breakfast to select company remodels and new builds Focused on building awareness and driving sales growth
Slide 39: Our Competitive Advantages
OUR COMPETITIVE ADVANTAGES The Wendy’s Company Iconic brand, latent equities Clear brand vision … A CUT ABOVE Well-defined growth platforms We have the RECIPE TO WIN Focused on EXECUTION
Slide 40: Upcoming Investor Calendar
Upcoming Investor Calendar March 7: Bank of America Merrill Lynch Conference March 12: Roth Growth Stock Conference March 15: UBS Global Consumer Conference May 8: 1Q Earnings Release
Slide 41: Q&A
Q&A
Slide 42: The Wendy’s Company
The Wendy’s Company ©2012 Oldemark LLC
Slide 43: Appendix
Appendix
Slide 44: Slide 44
Slide 45: Reconciliation of Adjusted EBITDA to Income from Continuing Operations
Reconciliation of Adjusted EBITDA to Income from Continuing Operations (Unaudited) (In Millions) 2011 2010 2011 2010 Adjusted EBITDA 80.9 $ 73.2 $ 331.1 $ 341.9 $ (Less) plus: Transaction related and other costs (15.0) - (45.7) - Arby's indirect corporate overhead in general and administrative (G&A)
Slide 46: Reconciliation of Adjusted Income from Continuing Operations and Adjusted EPS
Reconciliation of Adjusted Income from Continuing Operations and Adjusted Earnings per Share to Income from Continuing Operations and Earnings per Share (Unaudited) (in millions, except per share amounts) per share per share per share per share Adjusted income from continuing operations and adjusted