Wendy's Company (the) · NASDAQ:WEN
Wendy's Company (the) — Wendy's/Arby's Group — FY2010 Earnings Presentation
17 slides from Wendy's Company (the)'s earnings presentation, Jan 27, 2011
Slide 1: Financial Overview
Financial Overview Steve Hare Chief Financial Officer
Slide 2: Quarterly Revenues 2010 vs. 2009
Quarterly Revenues 2010 vs. 2009 In Millions Full-Year 2010 Revenues = $3.4 billion (1) (1) Q4 2009 includes an extra fiscal week
Slide 3: Quarterly Adjusted EBITDA 2010 vs. 2009
Quarterly Adjusted EBITDA (1) 2010 vs. 2009 Full-Year 2010 Adjusted EBITDA = $396.9 million, -3.6% vs. 2009 +14.7% +3.2% -19.6% -6.4% (2) (1) See Appendix (2) Normalized for 53 rd week ($13.6 million) In Millions
Slide 4: Wendy's Systemwide Same-Store Sales
Company-owned 0.2% -2.9% -3.1% -0.9% -1.7% Franchised 1.0% -1.4% -1.3% 0.6% -0.3% Wendy’s Systemwide Same-Store Sales
Slide 5: Wendy's Company-Owned Restaurant Margin
Wendy’s Company-Owned Restaurant Margin (1) Excludes incremental advertising for Wendy’s new breakfast in 2010. (2) Excludes impact of 53 rd week in 2009 Q4 -120 bps -120 bps due to Commodities 2010 +40 bps -60 bps Commodities
Slide 6: Arby's Systemwide Same-Store Sales
Company-owned -11.6% -8.8% -9.5% 2.9% -7.1% Franchised -11.4% -6.7% -4.1% 1.6% -5.2% Arby’s Systemwide Same-Store Sales
Slide 7: Arby's Company-Owned Restaurant Margin
Arby’s Company-Owned Restaurant Margin (1) Excludes non-recurring items and the impact of the extra week in 2009. Q4 -10 bps -160 bps due to Commodities 2010 -180 bps -75 bps due to Commodities
Slide 8: Returning Value to Shareholders
• Regular quarterly dividend increased 33% • Paid $27.6MM in dividends during 2010 Dividend Increase • Purchased 52MM shares, or 11% of shares outstanding, for $245MM since 2009 • $250MM authorized for future purchases Share Repurchase Program Returning Value to Shareholders Returned $195 million in
Slide 9: Capital Structure
Capital Structure *See Appendix.
Slide 10: 2011 Outlook Assumptions
— Pro forma Company EBITDA of $345-$355 million (Assumes sale of Arby’s and G&A reductions at beginning of fiscal 2011) — Wendy’s same-store sales growth +1% to +3% — Wendy’s company-operated restaurant margin* improvement of 30 to 60 basis points 2011 Outlook Assumptions *Includes breakfast expense
Slide 11: 2011 Commodities Increasing Approximately 2-3%
2011 Commodities Increasing Approximately 2-3%
Slide 12: 2011 Development and Capital Expenditure Plan
2011 Development and Capital Expenditure Plan
Slide 13: Benefits of Potential Sale of Arby's
Sale would be accretive to earnings and free cash flow — Reduce corporate G&A to support a single brand — Eliminate approximately $200 million of capital lease obligations related to Arby’s — Reduce future capital expenditures for Arby’s — Proceeds from sale of Arby’s would be available for re-inves
Slide 14: Long-Term EBITDA Growth Target of 10-15%
— Consistent same-store sales growth — Company-operated restaurant margin improvement — Daypart expansion — New units - North America and International — Franchisee royalty growth Long-Term EBITDA Growth Target of 10-15% Beginning in 2012
Slide 15: Wi
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Slide 16: EBITDA and Adjusted EBITDA Reconciliation
(In Millions) Fourth Quarter Twelve Months (Unaudited) Preliminary 2010 Actual 2009 Preliminary 2010 Actual 2009 EBITDA $ 85.8 $ 82.6 $ 384.0 $ 384.4 Depreciation and amortization (44.7) (46.9) (182.2) (190.3) Impairment of long-lived assets (28.1) (51.0) (69.4) (82.1) Operating profit (loss) 13.0 (
Slide 17: Appendix - Adjusted Restaurant Margin
Appendix -Adjusted Restaurant Margin