Wendy's Company (the) · NASDAQ:WEN
Wendy's Company (the) — The Wendy's Company — Q2 2024 Earnings Presentation
22 slides from Wendy's Company (the)'s earnings presentation, Aug 1, 2024
Slide 1: Second Quarter 2024 Conference Call
Second Quarter 2024 Conference Call August 1, 2024 © Quality Is Our Recipe, LLC
Slide 2: Nick Waters, Manager – Investor Relations
Nick Waters Manager – Investor Relations © Quality Is Our Recipe, LLC
Slide 3: 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 “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act
Slide 4: Agenda
Agenda Business Update Q2 Financial Results 2024 Financial Outlook IR Calendar Q&A THE WENDY'S COMPANY | 4
Slide 5: Kirk Tanner, President & Chief Executive Officer
Kirk Tanner President & Chief Executive Officer © Quality Is Our Recipe, LLC
Slide 6: Q2 2024 Performance Highlights
Q2 2024 Performance Highlights Global Systemwide Sales Growth of 2.6% and Global SRS Growth of 0.8% Maintained QSR Burger Category Dollar and Traffic Share in the U.S.1 Continued Breakfast Sales Growth Year-Over-Year Global Digital Sales Grew >40% Year-Over-Year, Delivering Mix of ~17% Net Unit Grow
Slide 7: Leadership Structure Evolving To Drive Accountability & Accelerate Growth
Leadership Structure Evolving To Drive DIGITAL Accountability & Accelerate Growth ACCELERATION SRS President, U.S President, International FOOTPRINT Abigail Pringle E.J. Wunsch MOMENTUM EXPANSION THE WENDY'S COMPANY | 7
Slide 8: Plans In Place To Drive Digital Sales In 2H 2024
Plans In Place To Drive DIGITAL Sales In 2H 2024 ACCELERATION Craveable Impactful Relevant Core Innovation Value Now Expect Global SRS of 1% to 3% in 2024 THE WENDY'S COMPANY | 8
Slide 9: Made Significant Progress Towards Solidifying Long-Term Development Plans
Made Significant Progress Towards Solidifying Long-Term Development Plans ▪ On track to deliver our 2024 global new restaurant openings of 250 to 300 units ▪ Added >250 new restaurants year-to-date to our global development commitments ▪ Launched enhanced development incentive structure in US to app
Slide 10: Gunther Plosch, Chief Financial Officer
Gunther Plosch Chief Financial Officer © Quality Is Our Recipe, LLC
Slide 11: Second Quarter Financial Results
Second Quarter Financial Results $ Mils (except per share amounts) 2023 2024 B/(W) Global Systemwide Sales Growth 6.9% 2.6% 2-Yr 9.5% Global System SRS 5.1% 0.8% 2-Yr 5.9% US Company Restaurant Margin 17.3% 16.5% (80) bps UPDATE G&A $62.7 $61.5 1.9% Adjusted EBITDA1 $144.5 $143.1 (1.0)% Adjusted EPS
Slide 12: 2024 Financial Outlook
2024 Financial Outlook Global Systemwide Sales 3% to 5% Growth Previous: 5% to 6% Adjusted EBITDA $535M to $545M Unchanged Free Cash Flow $275M to $285M Previous: $280M to $290M Adjusted EPS $0.98 to $1.02 Unchanged Capital Expenditures $90M to $100M Unchanged THE WENDY'S COMPANY | 12
Slide 13: Capital Allocation Policy Remains Unchanged
Capital Allocation Policy Remains Unchanged 1 Continue to Invest in the Business for Growth 2 Sustain an Attractive Dividend Quarterly dividend rate held at $0.25 per share Expect $1 per share dividend for FY 20241 3 Utilize Excess Cash to Repurchase Shares and/or Reduce Debt $500M Share Repurchase
Slide 14: Nick Waters, Manager – Investor Relations
Nick Waters Manager – Investor Relations © Quality Is Our Recipe, LLC
Slide 15: Investor Relations Calendar
Investor Relations Calendar August 27: Bernstein Investor Call September 12: JPM Conference (Miami) September 24: Stifel NDR (Toronto) October 31: Q3 2024 Earnings Release & Conference Call THE WENDY'S COMPANY | 15
Slide 16: Q&A
Q&A
Slide 17: Appendix
Appendix
Slide 18: 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 n
Slide 19: Reconciliations of Net Income to Adjusted EBITDA and Revenue to Adjusted Revenues
Reconciliations of Net Income to Adjusted EBITDA and Revenue to Adjusted Revenues THE WENDY'S COMPANY | 19
Slide 20: Reconciliation of Net Income and Diluted Earnings Per Share to Adjusted
Reconciliation of Net Income and Diluted Earnings Per Share to Adjusted Income and Adjusted Earnings Per Share THE WENDY'S COMPANY | 20
Slide 21: Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow THE WENDY'S COMPANY | 21
Slide 22: The Wendy's Company
The Wendy’s Company