Wendy's Company (the) · NASDAQ:WEN

Wendy's Company (the) — The Wendy's Company — Q4 2022 Earnings Presentation

33 slides from Wendy's Company (the)'s earnings presentation, Mar 1, 2023

  1. Slide 1: Fourth Quarter 2022 Conference Call

    Fourth Quarter 2022 Conference Call March 1, 2023 © Quality Is Our Recipe, LLC

  2. Slide 2: Kelsey Freed, Director – Investor Relations

    Kelsey Freed Director – Investor Relations © Quality Is Our Recipe, LLC

  3. Slide 3: 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 of 1995 (the “Reform Act”). For all such forward-looking s

  4. Slide 4: Agenda

    Agenda Business Update 2022 Financial Results 2023 & Long-Term Outlook IR Calendar Q&A THE WENDY'S COMPANY | 4

  5. Slide 5: Todd Penegor, President & Chief Executive Officer

    Todd Penegor President & Chief Executive Officer © Quality Is Our Recipe, LLC

  6. Slide 6: CEO Business Update

    CEO Business Update ▪ 12th consecutive year of Global SRS growth ▪ Weekly US breakfast sales peaked at over $3,000 per restaurant in Q4 ▪ Global digital sales mix continued to expand, averaging over 10% in Q4 ▪ Opened >275 global restaurants and grew net units by 2.1% in 2022 ▪ Almost 300 bps improv

  7. Slide 7: 12 Years of Global Same-Restaurant Sales Growth

    12 Years of Global Same-Restaurant Sales Growth 14.9% 2nd Consecutive Year of Double Digit 2-Year Global SRS 11.2% 4.8% 4.7% 4.1% 10.0% 3.7% 3.6% 3.9% 3.2% 3.1% 3.1% 4.9% 3.2% 2.9% 1.7% 1.5% 1.6% 1.5% 2.1% 1.0% 1.2% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1-year SRS 2-year SRS THE WEN

  8. Slide 8: Gunther Plosch, Chief Financial Officer

    Gunther Plosch Chief Financial Officer © Quality Is Our Recipe, LLC

  9. Slide 9: Fourth Quarter Financial Results

    Fourth Quarter Financial Results $ Mils (except per share amounts) 2022 2021 B/(W) Global Systemwide Sales Growth 8.4% 0.8% 2-Yr 9.2% Global System SRS 6.4% 7.3% 2-Yr 13.7% Company Restaurant Margin 14.5% 14.5% Flat G&A $68.5 $64.4 (6.4)% Adjusted EBITDA1 $123.5 $102.7 20.3% Adjusted EPS1 $0.22 $0.1

  10. Slide 10: Full Year Financial Highlights

    Full Year Financial Highlights ▪ Global Systemwide Sales Growth: 6.8% ▪ Net Unit Growth: 2.1% ▪ Company Restaurant Margin: 13.8% ▪ Adjusted EBITDA: $498M1 ▪ Adjusted EPS: $0.861 ▪ Free Cash Flow: $213M1 1 See Reconciliation of non-GAAP financial measures in the Appendix THE WENDY'S COMPANY | 10

  11. Slide 11: Todd Penegor, President & Chief Executive Officer

    Todd Penegor President & Chief Executive Officer © Quality Is Our Recipe, LLC

  12. Slide 12: Exceptional Leadership Team

    Exceptional Leadership Team MEET THE Abigail Pringle Liliana Esposito Coley O’Brien Carl Loredo TEAM Kevin Vasconi Gunther Plosch EJ Wunsch Deepak Ajmani THE WENDY'S COMPANY | 12

  13. Slide 13: Delivering Accelerated Global Growth

    DIGITAL ACCELERATION SRS FOOTPRINT MOMENTUM EXPANSION Delivering Accelerated GLOBAL GROWTH Restaurant Good Economic Model Done Right THE WENDY'S COMPANY | 13

  14. Slide 14: Expect to Deliver Sustained Same-Restaurant Sales Growth

    Expect to Deliver Sustained Same-Restaurant Sales Growth Mid-Single Digit 2023E Global SRS Growth Low-Single Digit 2024-2025E Global SRS Growth Annually Menu 4.9% Compelling Innovation 2022 Global SRS Growth Speed & Value Consistency Total Day Growth Drivers THE WENDY'S COMPANY | 14

  15. Slide 15: Expect Meaningful Step Up in Global Digital Sales Over Long-Term

    Expect Meaningful Step Up in Global Digital Sales Over Long-Term 2025E 2022 2023E >$2B >$1.3B ~$1.5B Growth Drivers • Seamless Experiences • 1:1 Marketing Capabilities • Emerging Technologies THE WENDY'S COMPANY | 15

  16. Slide 16: Focused Approach Expected to Drive Step Up in Unit Growth

    First UK Drive-Thru Location Focused Approach Expected to Drive Step Up in Unit Growth • >300 potential franchise candidates in recruiting pipeline • Global Next Gen design that reduces build costs & enhances profitability • Launched new Pacesetter development incentive • Build to suit program gaini

  17. Slide 17: Expect Unit Expansion Will Be Widespread

    Expect Unit Expansion Will Be Widespread Europe: Continue UK build out; enter Canada: Ireland & Spain Expanding w/ growth oriented FZ’s US: Thousands of APMEA: Large potential trade development areas identified agreements in LAC: Substantial India & Philippines growth of footprint in Mexico LAC: Lat

  18. Slide 18: We Will Become the World's Most Thriving, Beloved Restaurant Brand

    -WE WILL BECOME: THE WORLD'S thriving beleved RESTAURANT ‘BRAND:

  19. Slide 19: Gunther Plosch, Chief Financial Officer

    Gunther Plosch Chief Financial Officer © Quality Is Our Recipe, LLC

  20. Slide 20: 2023-2025 Outlook: Systemwide Sales Growth

    2023-2025 Outlook: Systemwide Sales Growth Mid-Single Digit 6-8% Annual Growth 2024-2025 Growth ~$13.3B THE WENDY'S COMPANY | 20

  21. Slide 21: 2023 Outlook: Adjusted EBITDA Growth

    2023 Outlook: Adjusted EBITDA Growth $530M to $540M 6-8% Growth ~$498M THE WENDY'S COMPANY | 21

  22. Slide 22: 2023-2025 Outlook: Free Cash Flow Growth

    2023-2025 Outlook: Free Cash Flow Growth High-Single to Low-Double Digit Annual Growth $265M 2024-2025 to $275M ~$213M THE WENDY'S COMPANY | 22

  23. Slide 23: Strong Momentum & Growth Plans Drive 2023 & Long-Term Outlook

    Strong Momentum & Growth Plans Drive 2023 & Long-Term Outlook 2023 Outlook Global Systemwide Sales Growth: 6% to 8% Adjusted EBITDA: $530M to $540M Adjusted EPS: $0.95 to $1.00 Capital Expenditures: $75M to $85M Free Cash Flow: $265M to $275M 2024 to 2025 Outlook Global Systemwide Sales Growth: Free

  24. Slide 24: 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 increased 100% to $0.25 per share Expect $1 per share dividend for FY 20231 3 Utilize Excess Cash to Repurchase Shares and/or Reduce Debt $500M Share R

  25. Slide 25: Kelsey Freed, Director – Investor Relations

    Kelsey Freed Director – Investor Relations © Quality Is Our Recipe, LLC

  26. Slide 26: Investor Relations Calendar

    Investor Relations Calendar • March 8: NDR with Credit Suisse (Boston) • March 13: NDR with Morgan Stanley (Virtual – West Coast Focus) • March 15: UBS Conference (New York) • March 16: Citi Conference (Miami) • May 10, 2023: Q1 2023 Earnings Release & Conference Call THE WENDY'S COMPANY | 26

  27. Slide 27: Q&A

    Q&A

  28. Slide 28: Appendix

    Appendix

  29. Slide 29: 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 no

  30. Slide 30: Reconciliations of Net Income to Adjusted EBITDA

    In Thousands (Unaudited) Reconciliations of Net Income to Adjusted EBITDA and Revenues to Adjusted Revenues THE WENDY'S COMPANY | 30

  31. Slide 31: Reconciliation of Net Income and Diluted Earnings Per Share

    In Thousands except per-share amounts (Unaudited) Reconciliation of Net Income and Diluted Earnings Per Share to Adjusted Income and Adjusted Earnings Per Share THE WENDY'S COMPANY | 31

  32. Slide 32: Reconciliation of Net Cash Provided by Operating Activities

    In Thousands (Unaudited) Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow THE WENDY'S COMPANY | 32

  33. Slide 33: Slide 33

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