Wendy's Company (the) · NASDAQ:WEN
Wendy's Company (the) — Investor Presentation (January 2012)
55 slides from Wendy's Company (the)'s investor presentation, Jan 30, 2012
Slide 1: Steve Farrar, Chief Operating Officer of North America
STEVE FARRAR CHIEF OPERATING OFFICER OF NORTH AMERICA
Slide 2: Recipe to Win: Create the best total customer experience
RECIPE TO WIN Create the best total customer experience. The Wendy’s Company
Slide 3: A Cut Above
A CUT ABOVE Activating people Evolving service experience Reimaging restaurants The Wendy’s Company
Slide 4: Internal Scorecards: Ops Improvement
The Wendy’s Company Internal Scorecards OPS IMPROVEMENT
Slide 5: Restaurant Operating Levels
RESTAURANT OPERATING LEVELS U.S. Company and Franchise Restaurants The Wendy’s Company 32.5% 24.8% 83.5% 0.6% 2008 2011 2008 2011 A & B LEVEL F LEVEL
Slide 6: Customer Feedback: Ops Improvement
The Wendy’s Company Customer Feedback OPS IMPROVEMENT
Slide 7: Complaint Response Time vs. Customers Returning
20% 25% 45% 55% 80% Minutes Hours Days Weeks Months Source: Forum Corporation Complaint Response Time vs. Customers Returning % of Customers Who Will Not Buy Again The Wendy’s Company
Slide 8: High Customer Scores = High Sales
$1,200,000 $1,300,000 $1,400,000 $1,500,000 $1,600,000 $1,700,000 20% 30% 40% 50% 60% 70% 80% 90% 100% E S TI M A TE D ANN U A L S A L E S CUSTOMER SCORE Actual Company Restaurant Sampling High Customer Scores = High Sales The Wendy’s Company
Slide 9: High Customer Scores = High Sales
$1,200,000 $1,300,000 $1,400,000 $1,500,000 $1,600,000 $1,700,000 20% 30% 40% 50% 60% 70% 80% 90% 100% E S TI M A TE D ANN U A L S A L E S CUSTOMER SCORE Actual Company Restaurant Sampling High Customer Scores = High Sales Each point increase results in $5,000 incremental annual sales The Wendy’s Co
Slide 10: Slide 10
Slide 11: My Wendy's
Slide 12: My Wendy's Reimages Customer Satisfaction
“My Wendy’s” Reimages Customer Satisfaction 53% 58% 62% Not Implemented 1-3 months 12+ months Customer Scores After Implementation The Wendy’s Company
Slide 13: The Wendy’s Company
The Wendy’s Company
Slide 14: People Reboot
PEOPLE REBOOT In each Image Activation restaurant: Re-interviewed entire staff Kept only “Five-Stars”/hired exceptional new employees Changed GMs and DMs as needed The Wendy’s Company
Slide 15: Superior Service
The Wendy’s Company SUPERIOR SERVICE
Slide 16: Win with Five-Star Athletes
Win with “Five-Star Athletes”
Slide 17: Image Activation
The Wendy’s Company IMAGE ACTIVATION
Slide 18: 1969…Wendy's
1969…Wendy’s The Wendy’s Company
Slide 19: Today…New QSRs
TODAY…New QSRs The Wendy’s Company
Slide 20: Today…Wendy's Outdated Designs
TODAY…Wendy’s Outdated Designs The Wendy’s Company
Slide 21: Today…Functional, not Competitive
TODAY…Functional, not Competitive The Wendy’s Company
Slide 22: Today…Bold, Innovative…A Cut Above
TODAY…Bold, Innovative…A CUT ABOVE The Wendy’s Company
Slide 23: "This CAN'T be Wendy's!"
“This CAN’T be Wendy’s!” The Wendy’s Company
Slide 24: "This CAN'T be Wendy's! I'm telling all my friends."
“This CAN’T be Wendy’s! I’m telling all my friends.” The Wendy’s Company
Slide 25: The Wendy’s Company
The Wendy’s Company
Slide 26: Traditional, Ultra-Modern, Urban, Contemporary
TRADITIONAL ULTRA-MODERN URBAN CONTEMPORARY
Slide 27: Driven by Customer Expectations
DRIVEN BY CUSTOMER EXPECTATIONS
Slide 28: High-Level Results: Sales Up in All Dayparts
HIGH-LEVEL RESULTS SALES UP IN ALL DAYPARTS CONSISTENTLY HIGH SALES The Wendy’s Company
Slide 29: High-Level Results: Dining Room Sales Driving 50% of Sales Growth
HIGH-LEVEL RESULTS DINING ROOM SALES DRIVING 50% OF SALES GROWTH The Wendy’s Company
Slide 30: BBE Bia omserssecnens
ye BBE Bia omserssecnens Fe Ae
Slide 31: Manhattan In-Line Design Prototype
Manhattan In-Line Design Prototype
Slide 32: Where do we go from here?
The Wendy’s Company Where do we go from here?
Slide 33: Traditional, Ultra-Modern, Urban, Contemporary
TRADITIONAL ULTRA-MODERN URBAN CONTEMPORARY
Slide 34: oer r
= —_— oer r = The Wendy's Company. a c
Slide 35: Finalizing Designs
FINALIZING DESIGNS Validating consumer impact and sustainability of sales Optimizing cost while retaining sales-driving power Maximizing ROI The Wendy’s Company
Slide 36: Image Activation
IMAGE ACTIVATION Highest returns Lowest cost Most durable finishes Remain relevant to customers The Wendy’s Company
Slide 37: Image Activation – 2012
IMAGE ACTIVATION – 2012 All company remodels and most new builds will be new designs 50 more remodels 20 new stores The Wendy’s Company
Slide 38: Image Activation
The Wendy’s Company IMAGE ACTIVATION
Slide 39: The Wendy’s Company
The Wendy’s Company
Slide 40: abet
abet *100% FRESHORANGE JUICI E TISA! ANZ: honoy—wheat muffin Seay ee eG SANDWICH
Slide 41: Media Launch: Average Weekly Breakfast Sales
Media Launch AVERAGE WEEKLY BREAKFAST SALES Kansas City, Phoenix, Pittsburgh The Wendy’s Company Net Gross Coupon Rate % 7/10 9/10 11/10 1/11 3/11 5/11 11/11 1/12 Anniversary Launch 7/11 9/11
Slide 42: Gaining Franchisee Support: Breakfast
GAINING FRANCHISEE SUPPORT Breakfast The Wendy’s Company CUSTOMERS OPERATIONS FINANCIAL
Slide 43: Strong Consumer Scores
The Wendy’s Company Question: How would you rate breakfast at Wendy’s on the following…* Variety 9.0 Taste 9.2 Freshness 9.2 Quality 9.2 Convenience 9.3 Location 9.2 Price 9.0 Value 9.1 * Rating on a 10-point scale STRONG CONSUMER SCORES
Slide 44: What Makes Wendy's Breakfast Special
What Makes Wendy’s Breakfast Special FRESH INGREDIENTS AND FRESH PREPARATION DIFFERENTIATED MENU OFFERINGS SANDWICHES BEVERAGES SIDES BAKERY The Wendy’s Company VALUE
Slide 45: Slide 45
Slide 46: Strong Financial Performance
STRONG FINANCIAL PERFORMANCE The Wendy’s Company Continued positive sales Focus on producing sustainable P&L for system Long-term incremental investment in marketing
Slide 47: Operationally Successful
The Wendy’s Company OPERATIONALLY SUCCESSFUL
Slide 48: Breakfast Expansion – 2012
The Wendy’s Company New market in Northeast Adding breakfast to company remodels and new builds 50 remodels 20 new stores Sustain long-term performance of existing test markets BREAKFAST EXPANSION – 2012
Slide 49: Daypart Expansion
The Wendy’s Company DAYPART EXPANSION
Slide 50: Late Night
The Wendy’s Company LATE NIGHT
Slide 51: 24-Hour Operations
24-HOUR OPERATIONS The Wendy’s Company
Slide 52: Founded on innovation, driven by execution
Founded on innovation Driven by execution The Wendy’s Company
Slide 53: The Wendy’s Company
The Wendy’s Company
Slide 54: Fast-Food Survey
FAST-FOOD SURVEY SURVEY eens — . {> = FOOD Eanes. x OVERALL a <<<" The Wendy's Company
Slide 55: A Cut Above
The Wendy’s Company A CUT ABOVE ACTIVATING PEOPLE EVOLVING SERVICE EXPERIENCE REIMAGING RESTAURANTS