Slide 1: Third Quarter 2012 Earnings Conference Call
©2012 Oldemark LLC 1 Exhibit 99.1 Third Quarter 2012 Earnings Conference Call November 8, 2012
Slide 2: John Barker, Chief Communications Officer
2 JOHN BARKER CHIEF COMMUNICATIONS OFFICER
Slide 3: Today's Agenda
Today’s Agenda The Wendy’s Company The Wendy’s Company Opening Comments Emil Brolick Financial Update Steve Hare CEO Overview Emil Brolick Q&A
Slide 4: Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements and Non-GAAP Financial Measures 4 The Wendy’s Company 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 assume
Slide 5: Emil Brolick, President & Chief Executive Officer
5 EMIL BROLICK PRESIDENT & CHIEF EXECUTIVE OFFICER
Slide 6: Core Organic Growth Strategies and Shareholder Value-Enhancing Initiatives
Core Organic Growth Strategies Shareholder Value-Enhancing Initiatives North America Same-Store Sales Growth Image / Experience Activation Global Growth Financial Management Restaurant Ownership Optimization The Wendy’s Company North America Same-Store Sales Growth Image / Experience Activation New
Slide 7: Recipe to Win Working!
The Wendy’s Company Recipe to Win Working! Reaffirming 2012 Outlook … Solid Growth Expected in 2013
Slide 8: Making Significant Progress on Image Activation
The Wendy’s Company Making Significant Progress on Image Activation
Slide 9: Sixth Consecutive Quarter of Positive SSS
The Wendy’s Company Sixth Consecutive Quarter of Positive SSS
Slide 10: Recipe to Win
RECIPE TO WIN The Wendy’s Company PEOPLE PEOPLE 5-Star Athletes 5-Star Athletes PRICE PRICE New QSR Quality at QSR Price New QSR Quality at QSR Price PRODUCT PRODUCT Play a different game. Superior Play a different game. Superior perceived quality, competitive price. perceived quality, competitive p
Slide 11: Long-Term Adjusted EBITDA and Adjusted EPS Growth
The Wendy’s Company Long-Term Adjusted EBITDA and Adjusted EPS Growth: High Single-Digit to Low Double-Digit Range
Slide 12: Free Cash Flow & Flexibility of Our Balance Sheet
The Wendy’s Company Free Cash Flow & Flexibility of Our Balance Sheet
Slide 13: 100% Increase in Dividend; $100 Million Share Repurchase Program
The Wendy’s Company 100% increase in dividend $100 million share repurchase program
Slide 14: Steve Hare, Chief Financial Officer
14 STEVE HARE CHIEF FINANCIAL OFFICER
Slide 15: Q3 2012 Financial Highlights
Q3 2012 Financial Highlights Company Restaurant Margin Q3 2012 13.9% Q3 2011 13.7% +20 bps North America Same-Store Sales Company-Operated +2.7% Franchise +2.9% Systemwide +2.8% August – September July – August
Slide 16: Q3 2012 Financial Summary
Q3 2012 Financial Summary Q3 2012 Q3 2011 Better/ (Worse) Sales 558.3 $ 534.5 $ 23.8 $ Franchise revenues 78.0 76.9 1.1 Total revenues 636.3 $ 611.4 $ 24.9 $ Adjusted EBITDA from continuing operations* 84.5 $ 87.0 $ (2.5) $ (Unaudited) ($ in millions) *See reconciliation of Adjusted EBITDA from cont
Slide 17: Impact of Image Activation on Q3 and Q4 2012 Adjusted EBITDA
Impact of Image Activation on Q3 and Q4 2012 Adjusted EBITDA 17 Q3 $4 million negative impact from temporary closure of restaurants and other costs related to Image Activation Q4 Expect positive impact from 47 reimaged restaurants that re-opened late in Q3 and early in Q4
Slide 18: Income from Continuing Operations and Special Items
Income from Continuing Operations and Special Items (Unaudited) ($ in thousands except per share amounts) After tax Per share (b) After tax Per share Adjusted income and adjusted earnings per share from continuing operations (a) 11,300 $ 0.03 $ 17,563 $ 0.05 $ (Less): Loss on early extinguishment of
Slide 19: Core Organic Growth Strategies and Shareholder Value-Enhancing Initiatives
Financial Management Global Growth Restaurant Ownership Optimization Image / Experience Activation North America Same-Store Sales Growth Core Organic Growth Strategies Shareholder Value-Enhancing Initiatives Financial Management Global Growth Restaurant Utilization & Daypart Expansion Restaurant Own
Slide 20: Slide 20
Slide 21: Free Cash Flow Highlights & Projections
Free Cash Flow Highlights & Projections (Unaudited) ($ in millions) 3 YearE 2012E 2013E (Cumulative) Adjusted EBITDA* $ $ $ 1,014 $ Cash Interest & Taxes (126) (121) (86) (333) Operating Cash Flow Base Capital Spending (96) (125) (100) (321) Free Cash Flow $ $ $ $ *See reconciliation of Adjusted EBI
Slide 22: Capital Allocation to Support Organic Growth and Returns to Stockholders
Capital Allocation to Support Organic Growth and Returns to Stockholders 21 Strong cash position $454 million of cash Consistent free cash flow generation in excess of base capital expenditures Expected high return on investment from Image Activation Flexibility to fund both growth and returns to st
Slide 23: Initiatives to Increase Stockholder Returns
Initiatives to Increase Stockholder Returns 22 100 percent increase in quarterly dividend Q4 increase from $0.02 to $0.04 per share Payable on Dec. 17 to stockholders of record on Dec. 3 $100 million share repurchase program
Slide 24: Selected Balance Sheet Highlights
Selected Balance Sheet Highlights ($ in Millions) Cash $ Senior Debt 1,424 $ Capital Leases and Other Debt Total Debt 1,457 $ TTM Adjusted EBITDA* $ Total Debt / TTM Adjusted EBITDA* 4.6x Net Debt / TTM Adjusted EBITDA* 3.2x September 30, 2012 *See reconciliation of Adjusted EBITDA from continuing o
Slide 25: 2012, 2013 and Long-Term Earnings Outlook
2012, 2013 and Long-Term Earnings Outlook Reaffirming Adjusted EBITDA from continuing operations in a range of $320 to $335 million Adjusted EBITDA from continuing operations in a range of $350 to $360 million Average annual Adjusted EBITDA and Adjusted EPS growth rates in high-single-digit to low-d
Slide 26: President & Chief Executive Officer
PRESIDENT & CHIEF EXECUTIVEOFFICER
Slide 27: Core Organic Growth Strategies and Shareholder Value-Enhancing Initiatives
Financial Management Global Growth Restaurant Ownership Optimization Image / Experience Activation North America Same-Store Sales Growth Core Organic Growth Strategies Shareholder Value-Enhancing Initiatives Financial Management Global Growth Restaurant Utilization & Daypart Expansion Restaurant Own
Slide 28: Delivers "A Cut Above" Brand Positioning
27 Delivers “A Cut Above” brand positioning • Creates a great work environment for our restaurant teams • Distinguishes Wendy’s from other traditional QSRs • Customers tell us they love the restaurants
Slide 29: Reimages Average Annualized Sales +25%
10 Reimages Average Annualized Sales +25% The Wendy’s Company
Slide 30: Salt Lake City, UT
The Wendy’s Company Salt Lake City, UT
Slide 31: Raleigh, NC
Raleigh, NC The Wendy’s Company
Slide 32: Image Activation
IMAGE ACTIVATION BRAND IMAGE PEOPLE & SERVICE CUSTOMER EXPERIENCE FOOD EXPERIENCE
Slide 33: Wendy's Brand Transformation
Wendy's Brand Transformation Restaurant Signage, Merchandising, & Uniforms Advertising, PR, Websites, Social Media & Packaging
Slide 34: 2013: Tiered Design Strategy to Optimize Returns
2013: Tiered Design Strategy to Optimize Returns TIER I TIER II TIER III The Wendy’s Company Targeted Investment * $650 to $750K $510 to 550K $375K Sales Lift > 25% 20% 7.5% *Estimates based on Company’s current outlook; excludes maintenance cap ex and other costs
Slide 35: Company and Franchise Reimages and New Restaurants
The Wendy’s Company Company Reimages All Tiers New Restaurants Franchise Expect Reimages Majority Tier I Introduce Tier II and Tier III Designs New Restaurants Estimates based on Company’s current outlook
Slide 36: Company Image Activation Plan for 2013
Company Image Activation Plan For 2013 100 Reimages and 25 New Restaurants
Slide 37: Franchise Interest is Growing
The Wendy’s Company Franchise Interest is Growing Offering incentive for Tier 1
Slide 38: Image Activation Expansion
750 approx. restaurants The Wendy’s Company Image Activation Expansion Estimates based on Company’s current outlook 50% of company restaurants Image Activated by end of 2015 50% of company restaurants Image Activated by end of 2015
Slide 39: System Optimization to Yield Multiple Benefits
The Wendy’s Company System Optimization to Yield Multiple Benefits; Strengthen Overall System Strong Franchise Base Existing Company- Owned Footprint New Franchisees Optimal System In-market concentration Restaurant performance Optimal franchise mix to maximize value High-quality operators Strong, m
Slide 40: Restaurant Utilization, Daypart Expansion and New Restaurant Development
Financial Management Global Growth Restaurant Ownership Optimization Image / Experience Activation North America Same-Store Sales Growth Core Organic Growth Strategies Shareholder Value-Enhancing Initiatives Restaurant Utilization & Daypart Expansion New Restaurant Development The Wendy’s Company
Slide 41: Marketing: Dual Campaign Legs
SOMETHING TO BUY SOMETHING TO BUY INTO MARKETING: DUAL CAMPAIGN LEGS
Slide 42: Consumers Remember It! +12%
Consumers Remember It! +12% AD AWARENESS Source: Millward Brown/Brand Health Tracking Study (August 2012 vs. April 2012) QSR HAMBURGER COMPETITOR A QSR HAMBURGER COMPETITOR B QSR SANDWICH COMPETITOR A The Wendy’s Company
Slide 43: Consumers Respond To It! +9%
Consumers Respond To It! +9% BRAND CONSIDERATION Source: Millward Brown/Brand Health Tracking Study (August 2012 vs. April 2012) QSR HAMBURGER COMPETITOR A QSR HAMBURGER COMPETITOR B QSR SANDWICH COMPETITOR A The Wendy’s Company
Slide 44: Successful Premium Product Launches
Successful Premium Product Launches Asiago Ranch Chicken Club
Slide 45: Growing Share in Premium Segments
Growing Share in Premium Segments HAMBURGER CHICKEN SALADS JJA’11 SON’11 DJF’12 MAM’12 JJA’12 JJA’12 Source: The NPD Group / CREST ® NEW QSR COMPETITOR Y QSR HAMBURGER COMPETITOR X
Slide 46: Recent Awards and Recognition
Recent Awards and Recognition Trademarks are the property of their respective owners. 45 ZAGAT: #1 Overall Mega Chain ACSI: #1 in Hamburger Category You Gov Social Media: #2 Buzz Index QSR Magazine: Fastest Drive-Thru Food Network: Chef’s Choice
Slide 47: John Barker, Chief Communications Officer
46 JOHN BARKER CHIEF COMMUNICATIONS OFFICER
Slide 48: Upcoming Investor Calendar
Upcoming Investor Calendar The Wendy’s Company 2013 Events January 16-17: ICR Conference in Miami, FL February 28: Q4 and 2012 Earnings Release
Slide 49: Q&A
48 Q&A
Slide 50: The Wendy’s Company
The Wendy’s Company
Slide 51: Appendix
50 Appendix
Slide 52: Reconciliation of Adjusted EBITDA from Continuing Operations to Net (Loss) Income
Reconciliation of Adjusted EBITDA from Continuing Operations to Net (Loss) Income Attributable to The Wendy’s Company
Slide 53: Reconciliation of Adjusted Income and Adjusted Earnings per Share
Reconciliation of Adjusted Income and Adjusted Earnings per Share from Continuing Operations to Net (Loss) Income and Earnings per Share Attributable to The Wendy’s Company (a) Adjusted earnings per share amounts for the three and nine months ended September 30, 2012, include the dilutive effect of