Wendy's Company (the) · NASDAQ:WEN
Wendy's Company (the) — The Wendy's Company — Q1 2021 Earnings Presentation
26 slides from Wendy's Company (the)'s earnings presentation, May 12, 2021
Slide 1: First Quarter 2021 Conference Call
First Quarter 2021 Conference Call May 12, 2021 © Quality Is Our Recipe, LLC
Slide 2: Greg Lemenchick
Greg Lemenchick Senior Director – Investor Relations & Corporate FP&A © Quality Is Our Recipe, LLC
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
Slide 4: Agenda
Agenda Business Update Q1 Financial Results 2021 Outlook IR Calendar Q&A THE WENDY'S COMPANY | 4
Slide 5: Todd Penegor
Todd Penegor President & Chief Executive Officer © Quality Is Our Recipe, LLC
Slide 6: CEO Business Update
CEO Business Update ▪ Double Digit Global 2-year SRS ▪ Continued Digital Acceleration ▪ Strong Breakfast Sales ▪ Significant Company Restaurant Margin Expansion ▪ Global Development Targets Remain on Track ▪ Increasing 2021 Outlook on all Key Financial Metrics ▪ Committed to Long Term Growth Initiat
Slide 7: Global Same-Restaurant Sales Continue to Accelerate in Q1
Global Same-Restaurant Sales Continue to Accelerate in Q1 US SRS: 13.5% (1 and 2 Year) | International SRS: 7.9% 1 Year; 6.3% 2 Year) 2-Year +1.2% -4.2% +10.5% +9.0% +12.8% SRS: 4.4% 4.3% 13.0% 6.1% 4.7% 1.4% 1.6% -0.2% -0.2% -5.8% Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Current Year Prior Year THE
Slide 8: U.S. Sales Boosted by Strong Products & Programs
U.S. Sales Boosted by Strong Products & Programs Bringing Back a Fan Turning Up the Heat Reimagining a Classic Favorite THE WENDY'S COMPANY | 8
Slide 9: Breakfast Remains Strong and On Track Towards 10% Goal
Breakfast Remains Strong and On Track Towards 10% Goal ▪ Breakfast sales accelerated vs. Q4 and remained ahead of expectations in Q1 ▪ Awareness, frequency, and trial trending upwards aided by strong promotions and March Madness partnership ▪ Fully committed to advertising plan and investments ▪ Rem
Slide 10: Digital Accelerates Significantly in Q1
Digital Accelerates Significantly in Q1 ▪ International digital mix accelerated to more than 10% ▪ U.S. digital mix exited Q1 at ~8% due to strong promotions ▪ U.S. rewards members grew to ~13M at quarter end ▪ Continue to expect U.S. digital to reach 10% sales mix by end of 2021 THE WENDY'S COMPANY
Slide 11: Momentum is Building on Global Unit Growth
Momentum is Building on Global Unit Growth ▪ Interest is high in new incentive program ▪ Global franchise recruiting pipeline significantly building ▪ New development agreements signed in Central Asia and Quebec, Canada ▪ On track to reach ~7,000 restaurants by year end 2021 THE WENDY'S COMPANY | 11
Slide 12: Remain Fully Committed to Long Term Growth Initiatives
Remain Fully Committed to Long Term Growth Initiatives Investing in Accelerated Global Growth Build Our Digital Expand Our Breakfast Acceleration Footprint Daypart Fast Food Operational Good Done Done Right Excellence Right Restaurant Economic Model THE WENDY'S COMPANY | 12
Slide 13: Food, People, Footprint goals
FOOD Responsibly source our top 10 priority food categories by 2030. G NEW GOALS if? PEOPLE Increase the representation of underrepresented populations among Company leadership and management, as wellas the diversity of Wendy's franchisees. ] FOOTPRINT Benchmark, track and reduce our Scope 1, Scope
Slide 14: Gunther Plosch
Gunther Plosch Chief Financial Officer © Quality Is Our Recipe, LLC
Slide 15: First Quarter Financial Results
First Quarter Financial Results $ Mils (except per share amounts) 2021 2020 B/(W) Global Systemwide Sales Growth 12.5% 1.0% 1150 bps Global System SRS 13.0% (0.2%) 2-Yr 12.8% Company Restaurant Margin 17.0% 10.1% 690 bps G&A $52.6 $51.6 (1.9)% Adjusted EBITDA1 $121.0 $89.3 35.4% Adjusted EPS1 $0.20
Slide 16: Increased 2021 Outlook
Increased 2021 Outlook Metric Previous Outlook Updated Outlook Global Systemwide 6% to 8%* 8% to 10%* Sales Growth Adjusted EBITDA ~$445M to $455M ~$455M to $465M Adjusted EPS ~$0.67 to $0.69 ~$0.72 to $0.74 Capital Expenditures ~$80M to $90M Reaffirmed Free Cash Flow ~$230M to $240 ~$250M to $260M
Slide 17: Capital Allocation Policy Remains Unchanged
Capital Allocation Policy Remains Unchanged • Continue to Invest in the Business for Growth • Sustain an Attractive Dividend; Payout Ratio > 50% • Increased Q2 Dividend by 11% to 10 cents per share • Flexibility to Utilize Excess Cash to Repurchase Shares and/or Reduce Debt • Increased Share Repurch
Slide 18: Greg Lemenchick
Greg Lemenchick Senior Director – Investor Relations & Corporate FP&A © Quality Is Our Recipe, LLC
Slide 19: Investor Relations Calendar (All Virtual)
Investor Relations Calendar (All Virtual) • May 19: Conference Call with MKM Partners • May 26: NDR with Morgan Stanley (West Coast) • June 8: Stifel Conference • June 16: Evercore Conference • June 23: Virtual HQ Visit with Longbow Research • Aug 11: Q2 Earnings Release & Conference Call THE WENDY'
Slide 20: Q&A
Q&A
Slide 21: Appendix
Appendix
Slide 22: 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
Slide 23: 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 | 23
Slide 24: 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 | 24
Slide 25: Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow
Reconciliation In Thousands (Unaudited) of Net Cash Provided by Operating Activities to Free Cash Flow THE WENDY'S COMPANY | 25
Slide 26: Slide 26