Slide 1: First Quarter 2013 Earnings Conference Call
© 2013 Oldemark LLC First Quarter 2013 Earnings Conference Call First Quarter 2013 Earnings Conference Call May 8, 2013 May 8, 2013 Exhibit 99.1
Slide 2: John Barker, Chief Communications Officer
© 2013 Oldemark LLC JOHN BARKER 2 JOHN BARKER Chief Communications Chief Communications Officer Officer
Slide 3: Today's Agenda
Today’s Agenda Today’s Agenda CEO Overview Emil Brolick Financial Update Steve Hare Q&A
Slide 4: Emil Brolick, President & CEO
© 2013 Oldemark LLC EMIL BROLICK 5 EMIL BROLICK President & CEO President & CEO
Slide 5: 2013 Outlook: Adjusted EBITDA and Adjusted EPS
Adjusted EBITDA $350 to $360 million Adjusted EPS $0.20 to $0.22 © 2013 Oldemark LLC Adjusted EBITDA $350 to $360 million Reaffirm Reaffirm Adjusted EPS $0.20 to $0.22 Raising Raising 2013 OUTLOOK: 2013 OUTLOOK:
Slide 6: Expect 2012 Initiatives to Contribute to Solid 2013
Expect 2012 Initiatives to Contribute to Solid 2013 8 Expect Initiatives to Contribute to Solid 2013
Slide 7: Right Price Right Size Menu Development
Right Price Right Size Menu Development Right Price Right Size Menu Development
Slide 8: Image Activation Beginning to Support SSS and Accelerate Re-imaging
Image Activation Beginning to Support SSS and Accelerate Re-imaging Opened 48 Tier I Reimages Completed Tier II & III Design Work Image Activation Beginning to Support SSS and Accelerate Re-imaging
Slide 9: Reduction in Number of Restaurants Serving Breakfast
Reduction in Number of Restaurants Serving Breakfast Reduction in Number of Restaurants Serving Breakfast Negative Impact on SSS Positive Impact on EBITDA
Slide 10: Ongoing Cost Reduction
Ongoing Cost Reduction Ongoing Cost Reduction G&A Management & Efficiencies Reduction in Beverage Costs Packaging Optimization RFPs with Purchasing Co-op
Slide 11: Brand Vision
BRAND VISION… HIGH LOW FUNCTIONAL EMOTIONAL BRAND VISION… COMPETITOR A COMPETITOR B NEW QSRs
Slide 12: Enabling Profitable Growth: The Recipe to Win
Enabling Profitable Growth PRICE PRICE New QSR Quality at QSR Price New QSR Quality at QSR Price PRODUCT PRODUCT Play a different game … Play a different game … Superior Superior perceived quality, competitive price perceived quality, competitive price PEOPLE PEOPLE 5-Star Performers 5-Star Performe
Slide 13: New QSR Quality at QSR Price
NEW QSR QUALITY AT QSR PRICE 15
Slide 14: Playing a Different Game
16 PLAYING A DIFFERENT GAME
Slide 15: Premium Price / Value: Build Big Brand, Drive Traffic
PREMIUM PRICE / VALUE BUILD BIG BRAND, DRIVE TRAFFIC
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Slide 17: 2013 Tier II and Tier III Reimages
2013 Tier II Columbus, OH 2013 Tier III Salt Lake City 18 2013 Tier II Columbus, OH 2013 Tier III Salt Lake City
Slide 18: Tier III Interior
19 Tier III Interior Tier III Interior
Slide 19: Core Organic Growth Strategies and Shareholder Value-Enhancing Initiatives
Core Organic Growth Strategies Shareholder Value-Enhancing Initiatives
Slide 20: Todd Penegor to Become Chief Financial Officer
Todd Penegor to Become Chief Financial Officer September 1, 2013 CFO Steve Hare to Retire from Wendy’s
Slide 21: Steve Hare, Chief Financial Officer
© 2013 Oldemark LLC STEVE HARE 22 STEVE HARE Chief Financial Officer Chief Financial Officer
Slide 22: /NORTH .
/NORTH . PACIFIC ‘COD FILLET
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Slide 24: Wendy's Q1 2013 Highlights
Wendy’s Q1 2013 Highlights Company Restaurant Margin +100bps Q1 2013 12.8% Q1 2012 11.8% February March (local) January Q1 2013 North America Same-Store Sales 1-Year 2-Year Company-Operated 1.0% 1.8% Franchise 0.6% 1.3% Wendy’s Q1 2013 Highlights Company Restaurant Margin +100bps Q1 2013 12.8% Q1 20
Slide 25: Q1 2013 Financial Summary
Q1 2013 Financial Summary Q1 2013 Financial Summary Q1 Q1 $ Change % Change Sales 530.7 $ 519.9 $ 10.8 $ 2.1% Franchise revenues 73.0 73.3 (0.3) -0.4% Total revenues 603.7 $ 593.2 $ 10.5 $ 1.8% Adjusted EBITDA* 77.3 $ 63.9 $ 13.4 $ 21.0% Adjusted EPS* 0.03 $ 0.01 $ 0.02 $ 200.0% ($ in millions excep
Slide 26: Adjusted Income and Special Items
Adjusted Income and Special Items Adjusted Income and Special Items *See reconciliation of Adjusted Income and Adjusted EPS in the appendix. (In Thousands Except Per Share Amounts) (Unaudited) Per share Per share Adjusted income and adjusted earnings per share* 13,101 $ 0.03 $ 3,347 $ 0.01 $ (Less)
Slide 27: 2013 Image Activation Depreciation
2013 Image Activation Depreciation Q1 Q2 Q3 Q4 2013 2013 Image Activation Depreciation Assets replaced are depreciated from the beginning of the year until closure for construction # of reopenings # of restaurants depreciated - % of IA depreciation adjustment ~65% ~25% ~10% 0% $20M to $25M
Slide 28: Q1 2013 Cash Flow Highlights
Q1 2013 Cash Flow Highlights Q1 2013 Cash Flow Highlights ($ in millions) (unaudited) Cash flow from operations 32.6 $ Capital expenditures 40.0 Beginning cash balance 453.4 $ Change in cash (24.7) Ending cash balance 428.7 $ Q1 2013
Slide 29: Selected Balance Sheet Highlights
Selected Balance Sheet Highlights Selected Balance Sheet Highlights ($ in millions) (unaudited) Cash $ Senior Debt 1,419 $ Capital Leases and Other Debt Total Debt 1,456 $ TTM Adjusted EBITDA* $ Total Debt / TTM Adjusted EBITDA* 4.2x Net Debt / TTM Adjusted EBITDA* 3.0x March 31, 2013 *See reconcili
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Slide 31: 2013 Debt Refinancing Expected to Save ~$20 Million in Annualized Interest Expense
29 2013 Debt Refinancing Expected to Save ~$20 million in Annualized Interest Expense $50M Annualized Net Interest Expense Savings vs. 2011 from 2012 and 2013 Refinancings • Refinancing of $350M of the $1,119M senior secured Term Loan B i nto a new senior secured Term Loan A • Repricing of the remai
Slide 32: Image Activation Results
Image Activation Results* Year 1 average sales lift exceeded 25% Sales sustaining at ~20% vs. pre-remodel volumes Average sales lift exceeding 25% since re-opening Sales sustaining at ~18% vs. pre-remodel volumes Image Activation Results* 10 concept reimages 48 Tier I reimages * Results exclude 2 no
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Slide 34: Image Activation Multi-Year Growth Plan
Image Activation Multi-Year Growth Plan 48 100 200 200 25 25 25 69 45 40 40 40 Image Activation Progress by Year-End 2015: • 50% of Company restaurants • 1 out of 5 restaurants in the Wendy ’ s System Image Activation Multi-Year Growth Plan Fr. New Co. New Fr. Reimage Co. Reimage Cumulative IA Resta
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Slide 38: 2013 and Long-Term Earnings Outlook
2013 and Long-Term Earnings Outlook Adjusted EBITDA: $350 to $360 million, 5% to 8% increase vs. 2012 Adjusted EPS: $0.20 to $0.22, 18% to 29% increase vs. 2012 Average annual Adjusted EBITDA and Adjusted EPS growth rates in high-single-digit to low- double-digit range 2013 and Long-Term Earnings Ou
Slide 39: John Barker, Chief Communications Officer
© 2013 Oldemark LLC JOHN BARKER 35 JOHN BARKER Chief Communications Chief Communications Officer Officer
Slide 40: Investor Relations Calendar
Investor Relations Calendar Events May 23: Annual Stockholder Meeting June: Begin Image Activation Market Visits with Investors Aug. 7: Second Quarter Earnings Release & Conference Call Investor Relations Calendar
Slide 41: Q&A
Q&A Q&A
Slide 42: Appendix
Appendix Appendix
Slide 43: Reconciliation of Adjusted EBITDA to Net Income Attributable to The Wendy's Company
Reconciliation of Adjusted EBITDA to Net Income Attributable to The Wendy's Company (In Thousands) (Unaudited) Adjusted EBITDA 77,299 $ 63,881 $ Less: Depreciation and amortization (51,797) (32,311) Impairment of long-lived assets - (4,511) Facilities relocation costs and other transactions (3,038)
Slide 44: Reconciliation of Adjusted Income and Adjusted Earnings Per Share
Reconciliation of Adjusted Income and Adjusted Earnings Per Share to Net Income and Earnings Per Share Attributable to The Wendy's Company (In Thousands Except Per Share Amounts) (Unaudited) Per share Per share Adjusted income and adjusted earnings per share 13,101 $ 0.03 $ 3,347 $ 0.01 $ (Less) plu