Slide 1: Updated 2015 and Long-Term Outlook
© 2015 Quality Is Our Recipe, LLC Updated 2015 and Long-Term Outlook Exhibit 99.1 June 3, 2015
Slide 2: David Poplar, Vice President Investor Relations
© 2015 Quality Is Our Recipe, LLC DAVID POPLAR Vice President Investor Relations
Slide 3: Today's Agenda
Today’s Agenda CEO Overview Emil Brolick Revised Guidance Todd Penegor Q&A
Slide 4: Emil Brolick, President & CEO
© 2015 Quality Is Our Recipe, LLC EMIL BROLICK President & CEO
Slide 5: Bakery sale, share repurchase, updated guidance and financing
© 2015 Quality Is Our Recipe, LLC CLOSED ON SALE OF BAKERY; PRE-TAX PROCEEDS ~ $80M ANNOUNCING $850 MILLION SHARE REPURCHASE COMMENCING TODAY ANNOUNCING $1.4 BILLION SHARE REPURCHASE PROGRAM UPDATING 2015 GUIDANCE AND LONG- TERM OUTLOOK COMPLETED $2.275 BILLION SECURITIZED FINANCING FACILITY ON JUNE
Slide 6: Todd Penegor, Chief Financial Officer
© 2015 Quality Is Our Recipe, LLC TODD PENEGOR Chief Financial Officer
Slide 7: Recapitalization
Recapitalization
Slide 8: Recapitalization Overview
Recapitalization Overview New Facilities (100% fixed rate) Previous Facilities (Fixed & variable rates) $2.425B WBS Facility (BBB Rating) $1.5B Bank Facility (BB- Rating) $2.525B Total Facilities $1.6B Total Facilities • Completed the Whole Business Securitization at ~ 6x Net Debt / 2014 Adjusted EB
Slide 9: Bakery Update
Bakery Update
Slide 10: Bakery Update
Bakery Update • Sale of bakery operations has closed • Pre-tax proceeds ~$80M • Expected after-tax proceeds ~$50M • Buyer has assumed pension fund obligations • 2014 EBITDA impact of ~$16M • 2014 EPS impact of ~$0.02 IMPACT OF BAKERY SALE ON OUTLOOK Revised 2015 Adjusted EBITDA guidance: $375-$385M
Slide 11: Share Repurchase Program
Share Repurchase Program
Slide 12: Share Repurchase Summary
Share Repurchase Summary • $15M remains on existing $100M authorization; plan to utilize by end of 2015 • New $1.4B share repurchase program approved through end of 2016: • ~$925M Net recap proceeds • ~$350M Estimated SO III after-tax proceeds • ~$50M Estimated bakery after-tax proceeds • ~$75M Cash
Slide 13: Revised 2015 and Long-Term Guidance
Revised 2015 and Long-Term Guidance
Slide 14: 2015 and Long-Term Guidance
2015 and Long-Term Guidance Adj. EPS Growth 10-17% High Single Digit High Single Digit Mid-to-High Teens CapEx $250-$260M $135-$145M $80-$90M ~$75M **Free Cash Flow ~$75M $100-$125M $200-$225M $250-$275M Adj. EPS Growth 10-17% High Single Digit High Teens >20% CapEx $240-$250M $130-$140M $75-$85M ~$
Slide 15: System Optimization – Quality of Earnings Evolution
System Optimization – Quality of Earnings Evolution 50% 50% 80% 20% Expect to have achieved cumulative G&A savings of ~$80 Million following the completion of SO III Will have monetized ~70% of our 674 owned real estate properties Rent & Royalties Company Restaurants 2012 (A) ~23% Co. Ownership 2017
Slide 16: Income and Growth Focus
Income and Growth Focus Utilize “Excess” Cash to Repurchase Shares 1 Dividend Growth in Line with Earnings 2 Invest in the Business 4 Leveraging Our Balance Sheet Improved Free Cash Flow Return Cash to Shareholders 3 5 Improvement in ROIC Over Time 5
Slide 17: David Poplar, Vice President Investor Relations
© 2015 Quality Is Our Recipe, LLC DAVID POPLAR Vice President Investor Relations
Slide 18: 2015 Investor Relations Calendar: Key Dates
2015 Investor Relations Calendar: Key Dates June 22 Stifel Conference (Baltusrol, NJ) June 23 New York Road Show August 5 2Q Earnings Release September 10 CL King (NYC) Conference November 4 3Q Earnings Release November 17-18 Morgan Stanley Conference
Slide 19: Important Information Regarding the Tender Offer
Important Information Regarding the Tender Offer This presentation is for informational purposes only and is not an offer to buy or the solicitation of an offer to sell any shares of the Company’s common stock. The offer is being made solely by an Offer to Purchase and the related Letter of Transmit
Slide 20: Q&A
Q&A
Slide 21: Slide 21