Wendy's Company (the) · NASDAQ:WEN
Wendy's Company (the) — Investor Day (June 2012)
53 slides from Wendy's Company (the)'s investor day presentation, Jun 28, 2012
Slide 1: Craig Bahner, Chief Marketing Officer
Exhibit 99.6 CRAIG BAHNER CHIEF MARKETING OFFICER
Slide 2: Accelerating North America Sales
Accelerating North America Sales
Slide 3: Early Observations
The Wendy’s Company EARLY OBSERVATIONS The Wendy’s Company Great consumer brand Built on foundation of quality Talented leaders in key roles Experienced and passionate franchisee base Growth pyramid is solid
Slide 4: North America Same-Store Sales Growth
System Optimization Financial Management Global Growth Image / Experience Activation North America Same-Store Sales Growth System Optimization Financial Management Restaurant Utilization & Daypart Expansion Global Growth New Restaurant Development Image / Experience Activation North America Same-Sto
Slide 5: Key Building Blocks for Accelerated Growth
KEY BUILDING BLOCKS FOR ACCELERATED GROWTH 1. Drive Customer Visits AND Build The Brand “Transaction+” 2. Build The Product Pipeline “What” and “How” 3. Drive Key Occasions & Target Opportunities More customer visits, more often 4. Get The Price/Value Equation Right Drive value and margins 5. Explod
Slide 6: Key Building Blocks for Accelerated Growth
KEY BUILDING BLOCKS FOR ACCELERATED GROWTH 1. Drive Customer Visits AND Build The Brand “Transaction+” 2. Build The Product Pipeline “What” and “How” 3. Drive Key Occasions & Target Opportunities More customer visits, more often 4. Get The Price/Value Equation Right Drive value and margins 5. Explod
Slide 7: Build Customer Visits & Build the Brand
The Wendy’s Company BUILD CUSTOMER VISITS & BUILD THE BRAND
Slide 8: Build Customer Visits & Build the Brand
BUILD CUSTOMER VISITS & BUILD THE BRAND The Wendy’s Company
Slide 9: Build Customer Visits & Build the Brand
The Wendy’s Company BUILD CUSTOMER VISITS & BUILD THE BRAND
Slide 10: Big Idea, Holistically Activated
BIG IDEA, HOLISTICALLY ACTIVATED
Slide 11: Business Results
BUSINESS RESULTS Past 12 Months April 2012 Average Weekly Units +17% Past 12 Months April 2012 Product Mix +18% PREMIUM CHICKEN SANDWICHES
Slide 12: Building Equity & Relevance
BUILDING EQUITY & RELEVANCE “I think they dovetail pretty well because you have the Red ad telling you they are making new products… then, you have Wendy saying everything is fresh; we really care about you.” Brand Offering Brand Promise Family values Quality/ Fresh Better choices New products Sourc
Slide 13: Building Equity
BUILDING EQUITY 80 to 120 average range Source: Ameritest Overall Best QSR Fresh Ingredients High Quality 80 to 120 average range
Slide 14: Driving Relevance
DRIVING RELEVANCE #definingmoment About to settle on tacos but seeing a Wendy's sign in the far distance instead. Excitement level: Maxed! @Wendys The spicy guacamole chicken club is freaking amazing! #DefiningMoment #DefiningMoment Love the new Wendy ’ s girl! OMG, love the new spicy chicken guac f
Slide 15: Driving Relevance
DRIVING RELEVANCE whoisthathotadgirl.tumblr.com @thathotadgirl commercialsociety.wordpress.com burgerbusiness.com http://notrightn0w.tumblr.com http://terrysexyli.tumblr.com April, 2012
Slide 16: Build Customer Visits & Build the Brand
The Wendy’s Company BUILD CUSTOMER VISITS & BUILD THE BRAND
Slide 17: Key Building Blocks for Accelerated Growth
KEY BUILDING BLOCKS FOR ACCELERATED GROWTH 1. Drive Customer Visits AND Build The Brand “Transaction+” 2. Build The Product Pipeline “What” and “How” 3. Drive Key Occasions & Target Opportunities More customer visits, more often 4. Get The Price/Value Equation Right Drive value and margins 5. Explod
Slide 18: Our Innovation Criteria
OUR INNOVATION CRITERIA Ownable Compelling Distinctive Ownable Compelling Distinctive
Slide 19: Pipeline Principles
The Wendy’s Company PIPELINE PRINCIPLES 1. Consumer-led 2. Brand strategy driven 3. Value creating
Slide 20: Innovation Strategy
Core Menu Promotional Products Step-Change Cost INNOVATION STRATEGY
Slide 21: Bringing the Innovation Strategy to Life
BRINGING THE INNOVATION STRATEGY TO LIFE CONSUMER BRAND VALUE CREATION Core Existing Relevant, Current Base Proposition
Slide 22: Bringing the Innovation Strategy to Life
BRINGING THE INNOVATION STRATEGY TO LIFE CONSUMER BRAND VALUE CREATION Core Existing Relevant, Current Base Proposition Promotional Extends reach to Distinctivity Leverage existing assets/ new customers capabilities
Slide 23: Bringing the Innovation Strategy to Life
The Wendy’s Company BRINGING THE INNOVATION STRATEGY TO LIFE CONSUMER BRAND VALUE CREATION Core Existing Relevant, Current Base Proposition Promotional Extends reach to Distinctivity Leverage existing assets/ new customers capabilities Step-change Opens new market Concept defining Creates new value
Slide 24: Bringing the Innovation Strategy to Life
The Wendy’s Company BRINGING THE INNOVATION STRATEGY TO LIFE The Wendy’s Company CONSUMER BRAND VALUE CREATION Core Existing Relevant, Current Base Proposition Promotional Extends reach to Distinctivity Leverage existing assets/ new customers capabilities Step-change Opens new market Concept definin
Slide 25: A Disciplined and Systemic Approach to Innovation
A DISCIPLINED AND SYSTEMIC APPROACH TO INNOVATION Improve key innovation processes 24-36 month masterplan Stage Gate Process “Three Green” Decision Criteria Portfolio analysis The Wendy’s Company Process and Discipline Creates Reliable, Consistent Results
Slide 26: Consumer/Idea-Led Innovation
CONSUMER/IDEA-LED INNOVATION The Wendy’s Company INNOVATION INNOVATION CONSUMER INSIGHTS PRODUCT DEVELOPMENT OPERATIONS BRAND
Slide 27: Key Building Blocks for Accelerated Growth
KEY BUILDING BLOCKS FOR ACCELERATED GROWTH 1. Drive Customer Visits AND Build The Brand “Transaction+” 2. Build The Product Pipeline “What” and “How” 3. Drive Key Occasions & Target Opportunities More customer visits, more often 4. Get The Price/Value Equation Right Drive value and margins 5. Explod
Slide 28: Drive Key Occasions & Target Opportunities
DRIVE KEY OCCASIONS & TARGET OPPORTUNITIES The Wendy’s Company
Slide 29: Wendy's Isn't Capturing Fair Share of Beverages
WENDY’S ISN’T CAPTURING FAIR SHARE OF BEVERAGES The Wendy’s Company Wendy’s Incidence vs. Hamburger QSR (1.5) (1.3) (1.9) (1.8) 2.3 Source: NPD Group / CREST YE April 2012 excluding morning meal
Slide 30: Beverages as an Occasion Driver
Base (CSD’s, water, milk) Expected (Iced Tea, Coffee) Enhanced Experience Traffic Driver Specialty Coffee, Flavored Teas, Natural Lemonade Frozen Beverages, Iced Tea Varietals, Other New Categories The Wendy’s Company BEVERAGES AS AN OCCASION DRIVER Competitive Parity Competitive Advantage
Slide 31: Redhead Roasters
REDHEAD ROASTERS TM The Wendy’s Company
Slide 32: Signature Lemonade
SIGNATURE LEMONADE
Slide 33: Late Night Marketing Support
LATE NIGHT MARKETING SUPPORT
Slide 34: Late Night Business Is Growing
LATE NIGHT BUSINESS IS GROWING Data based on Late Night launch 5/28/12 through 6/24/12 compared to same weeks in 2011 +10% NATIONALLY +10% NATIONALLY
Slide 35: Wendy's Is Underdeveloped Among Hispanics
The Wendy’s Company WENDY’S IS UNDERDEVELOPED AMONG HISPANICS Hamburger Category Source: NPD Group / CREST Hispanic Study, 2011 Non-Hispanic Hispanic Hamburger Category = 21% = 13% Of Traffic Of Traffic
Slide 36: A Culturally Relevant Idea
The Wendy’s Company A CULTURALLY RELEVANT IDEA
Slide 37: Brought to Life Holistically
The Wendy’s Company BROUGHT TO LIFE HOLISTICALLY
Slide 38: Hispanic-Area Restaurants Leading Growth
HISPANIC-AREA RESTAURANTS LEADING GROWTH Essbase Internal Sales data Company Locations -0.3pts +1.7pts +0.8pts +1.1pts +2.0pts The Wendy’s Company
Slide 39: Key Building Blocks for Accelerated Growth
KEY BUILDING BLOCKS FOR ACCELERATED GROWTH 1. Drive Customer Visits AND Build The Brand “Transaction+” 2. Build The Product Pipeline “What” and “How” 3. Drive Key Occasions & Target Opportunities More customer visits, more often 4. Get The Price/Value Equation Right Drive value and margins 5. Explod
Slide 40: Not Consistently Executing 99¢ Pricing
NOT CONSISTENTLY EXECUTING 99¢ PRICING Avg. of Franchise Stores That Have Taken Price > 99¢ 16% 49% 46% 65% 39% 39% 21% 15% 5% 7% % Fr. Stores > 99¢ 99¢ The Wendy’s Company
Slide 41: Value Menu Phase 1 Test and Current Menu
Cheesy Cheddarburger 99¢ Monterey Ranch Crispy Chicken Sandwich 99¢ Jr. Cheeseburger Deluxe 99¢ Crispy Chicken Caesar Wrap 99¢ 5-pc Spicy Chicken Nuggets 99¢ Value Natural-cut Fries w/Sea Salt 99¢ Small Frosty 99¢ Value Drink 99¢ Jr. Bacon Cheeseburger $1.59 Double Stack $1.79 5-pc Crispy Chicken Nu
Slide 42: Value Menu Test Update
The Wendy’s Company VALUE MENU TEST UPDATE Phase I Test Grew sales & margins Phase II Test Fine-tuning menu & pricing changes Re-branded Value Menu
Slide 43: Desired Outcomes
The Wendy’s Company DESIRED OUTCOMES Greater System alignment Reliable, predictable customer experience Enables consumer value messaging
Slide 44: Optimizing Pricing
The Wendy’s Company OPTIMIZING PRICING Pricing Optimization Software to model pricing scenarios to maximize sales and profits Test learnings: Saw growth in sales, gross margin, transactions, and average check. Re-optimizing test markets; expansion Q1 2013
Slide 45: Key Building Blocks for Accelerated Growth
KEY BUILDING BLOCKS FOR ACCELERATED GROWTH 1. Drive Customer Visits AND Build The Brand “Transaction+” 2. Build The Product Pipeline “What” and “How” 3. Drive Key Occasions & Target Opportunities More customer visits, more often 4. Get The Price/Value Equation Right Drive value and margins 5. Explod
Slide 46: Explode Digital
EXPLODE DIGITAL
Slide 47: Key Results: Digital and Social
1.6m monthly visitors 4.5m total followers 68k followers 2011 Golden Tweet Award The Wendy’s Company Key Results 1.6m monthly visitors 4.5m total followers 68k followers 2011 Golden Tweet Award
Slide 48: Key Results: Social Media Rank and Awards
#3 Brand in social media 6 Awards Fastest growing food/beverage search item The Wendy’s Company Key Results #3 Brand in social media Awards Fastest growing food/beverage search item
Slide 49: By Channel
By Channel The Wendy’s Company
Slide 50: Digital Pathway
The Wendy’s Company DIGITAL PATHWAY Customer service on Social Media Mobile App launch Re-launch Wendys.com Local Digital Marketing Expand Mobile App functionality
Slide 51: Mobile App
The Wendy’s Company MOBILE APP Breakthrough nutrition capability Location finder
Slide 52: Digital Platform for Growth
DIGITAL PLATFORM FOR GROWTH Platform to enable: Digital coupons Loyalty programs Geographic and psychographic targeting Mobile Ordering Mobile Payment
Slide 53: Wrapping Up
The Wendy’s Company WRAPPING UP Growth opportunities are clear Putting 5-Star talent and capabilities in place Sense of urgency – now is the time Confident we are going to do this