Wendy's Company (the) · NASDAQ:WEN
Wendy's Company (the) — The Wendy's Company — Investor Day (March 2025)
131 slides from Wendy's Company (the)'s investor day presentation, Mar 6, 2025
Slide 1: Investor Day 2025
Wendys oA INVESTOR 6) DAY 2025
Slide 2: Welcome
WELCOME AARON BROHOLM Head of Investor Relations
Slide 3: Forward-Looking Statements and Non-GAAP Financial Measures
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
Slide 4: Today's Agenda
TODAY’S AGENDA KIRK TANNER Growth Strategy and Strategic Initiatives President & CEO LINDSAY RADKOSKI Customer First Approach to Marketing Chief Marketing Officer, U.S. ABIGAIL PRINGLE Customer Experience, Operational Excellence & US Development President, U.S. 10 Minute Break E.J. WUNSCH Internatio
Slide 5: Kirk Tanner
KIRK TANNER PRESIDENT & CEO
Slide 6: Best Food, Great Experience
At Wendy’s, our focus is on serving the BEST FOOD and creating a GREAT EXPERIENCE for our customers. 6
Slide 7: Key Takeaways
KEY TAKEAWAYS We are WELL-POSITIONED to leverage Wendy’s STRENGTHS and BRAND EQUITY to SCALE OUR SYSTEM We have a FOCUSED STRATEGY that we are executing with a new level of OPERATIONAL INTENSITY We will DRIVE PROFITABLE GROWTH to create value for OUR CUSTOMERS, OUR FRANCHISEES and OUR SHAREHOLDERS 7
Slide 8: Why Wendy's?
Slide 9: We Have a Sizable Growth Opportunity
WHY WENDY’S? WE HAVE A SIZABLE GROWTH OPPORTUNITY $970B UNITED STATES INTERNATIONAL Global QSR Market Size (2024)1 +3% § Wendy’s has 1 restaurant § Today 1,300+ restaurants per 56K people in 33 international markets § Largest competitors have § Significant opportunity Global Total QSR 1 restaurant p
Slide 10: We Are Well-Positioned to Scale
WHY WENDY’S? WE ARE WELL-POSITIONED TO SCALE HIGHEST- GLOBALLY- SYSTEM TALENTED QUALITY FOOD RECOGNIZED, OF 7,200+ & PASSIONATE IN QSR ICONIC BRANDS RESTAURANTS PEOPLE 10
Slide 11: We Have Attractive Customer Growth Opportunities
WHY WENDY’S? WE HAVE ATTRACTIVE CUSTOMER GROWTH OPPORTUNITIES § High growth demographics § Thoughtful & personalized engagement § Unique brand collaborations only Wendy’s can do 11
Slide 12: Fresh, Famous Food... Made Right... For You.
DELIVERING ON OUR PROMISE “FRESH, FAMOUS FOOD… MADE RIGHT… FOR YOU.”
Slide 13: Starts with a Shift in Mindset
DELIVERING ON OUR PROMISE STARTS WITH A SHIFT IN MINDSET INWARD FOCUSED CUSTOMER FIRST INCONSISTENT EXECUTION PERFECT EVERY TIME NORTH AMERICA CONCENTRATED GLOBAL SCALE SHORT-TERM PRIORITIES LONG-TERM APPROACH LEGACY MENU FRESH, FAMOUS FOOD 13
Slide 14: Creating Brand Love: Liked to Loved
DELIVERING ON OUR PROMISE CREATING BRAND LOVE LIKED LOVED 14
Slide 15: Value of Moving from Liked to Loved
DELIVERING ON OUR PROMISE VALUE OF MOVING FROM LIKED TO LOVED 4x 20x Visits Visits Per Year Per Year 15
Slide 16: The Right People in the Right Seats
DELIVERING ON OUR PROMISE THE RIGHT PEOPLE IN THE RIGHT SEATS NEW TO ROLE NEW TO ROLE NEW TO ROLE NEW TO ROLE LINDSAY RADKOSKI ABIGAIL PRINGLE E.J. WUNSCH KEN COOK Chief Marketing Officer, U.S. President, U.S. President, International Chief Financial Officer NEW TO ROLE NEW TO ROLE LILIANA ESPOSITO
Slide 17: Actions We Are Taking to Win
DELIVERING ON OUR PROMISE ACTIONS WE ARE TAKING TO WIN Placing Customer at Operational Intensity Strengthening Franchise the Center of Everything and Marketing Excellence System and Structure 17
Slide 18: Our Long-Term Strategy
i) OUR LONG-TERM STRATEGY
Slide 19: Our Long-Term Strategy
OUR LONG-TERM STRATEGY DOUBLE DOWN ON DELIVER AN EXCEPTIONAL ACCELERATE FRESH, FAMOUS FOOD CUSTOMER EXPERIENCE GLOBAL UNIT GROWTH CREATING VALUE FOR FRANCHISEES AND SHAREHOLDERS 19
Slide 20: Double Down on Fresh, Famous Food
OUR LONG-TERM STRATEGY DOUBLE DOWN ON FRESH, FAMOUS FOOD Highest Quality, Great Value Craveable Core Impactful Innovation Global Menu Relevance 20
Slide 21: Deliver an Exceptional Customer Experience
OUR LONG-TERM STRATEGY DELIVER AN EXCEPTIONAL CUSTOMER EXPERIENCE Perfect Every Time Customized for You Convenient Across Channels Hospitality to Bring You Back 21
Slide 22: Accelerate Global Unit Growth
OUR LONG-TERM STRATEGY ACCELERATE GLOBAL UNIT GROWTH Build Strongholds in Key Markets Strengthen Local Capabilities Invest to Fuel Growth Globalize Our Supply Chain 22
Slide 23: Investing in Our Future to Fuel Growth
OUR LONG-TERM STRATEGY INVESTING IN OUR FUTURE TO FUEL GROWTH EXPERIENCE TECHNOLOGY DEVELOPMENT § Highest Quality Food § Digital menu boards § Global Next Gen Design § Operational Excellence § AI voice-enabled ordering § Company Restaurant § Field Resources Leadership § Digital kiosks § Build-to-Sui
Slide 24: Our Long-Term Financial Algorithm
OUR LONG-TERM STRATEGY OUR LONG-TERM FINANCIAL ALGORITHM 3-4% 5-6% 7-8% Annual Net Annual Systemwide Adj. EBITDA Unit Growth Sales Growth* Growth* * Non-GAAP financial measure. See Appendix for additional information 24
Slide 25: 2028: Our Growth Targets
OUR LONG-TERM STRATEGY 2028: OUR GROWTH TARGETS 8,100- $17.5- $650- 8,300 18.0B 700M Units Systemwide Sales* Adj. EBITDA* * Non-GAAP financial measure. See Appendix for additional information 25
Slide 26: Key Takeaways
KEY TAKEAWAYS We are WELL-POSITIONED to leverage Wendy’s STRENGTHS and BRAND EQUITY to SCALE OUR SYSTEM We have a FOCUSED STRATEGY that we are executing with a new level of OPERATIONAL INTENSITY We will DRIVE PROFITABLE GROWTH to create value for OUR CUSTOMERS, OUR FRANCHISEES and OUR SHAREHOLDERS 2
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Slide 28: Lindsay Radkoski
LINDSAY RADKOSKI CHIEF MARKETING OFFICER, U.S.
Slide 29: Our Playbook
OUR PLAYBOOK CUSTOMER-FIRST FRESH, WORLD-FAMOUS APPROACH FAMOUS FOOD MARKETING 29
Slide 30: Customer-First Approach
i) CUSTOMER-FIRST APPROACH
Slide 31: The U.S. QSR Customer Overview
CUSTOMER-FIRST APPROACH THE U.S. QSR CUSTOMER FOODSERVICE INDUSTRY OVERVIEW 71B Annual foodservice 65% QSR share of visits foodservice WENDY’S FOCUS SUPER FANS ~130 ~20 Annual QSR visits Annual WEN visits per person per person Source: Circana Crest® U.S. QSR 12ME Dec ‘24 31
Slide 32: Focus on Key Growth Audiences
CUSTOMER-FIRST APPROACH FOCUS ON KEY GROWTH AUDIENCES FAMILIES MULTICULTURAL GEN Z 32
Slide 33: Families
35% QSR Traffic FAMILIES Source: Circana Crest® U.S. QSR 12ME Dec ’24, Parties With Kids 33
Slide 34: Hispanic
23% QSR Traffic HISPANIC Source: Circana Crest® U.S. QSR 12ME Dec ‘24 34
Slide 35: Gen Z
21% QSR Traffic GEN Z Source: Circana Crest® U.S. QSR 12ME Dec ‘24 35
Slide 36: Our Proprietary Consumer Model
CUSTOMER-FIRST APPROACH OUR PROPRIETARY CONSUMER MODEL 1 OPPORTUNITY IDENTIFICATION 2 INITIATIVE DEVELOPMENT MEASUREMENT 3 & LEARNING 36
Slide 37: Fresh, Famous Food
i) FRESH, FAMOUS FOOD
Slide 38: Committed to Delivering on Three Menu Pillars
FRESH, FAMOUS FOOD COMMITTED TO DELIVERING ON CRAVEABLE THREE MENU PILLARS CORE IMPACTFUL RELEVANT INNOVATION VALUE 38
Slide 39: Fresh Beef Is Our Foundation
FRESH BEEF IS OUR FOUNDATION 6.4B Annual QSR Hamburger Servings Source: Circana Crest® U.S. QSR 12ME Dec ‘24 39
Slide 40: 100% Pure North American Beef
Slide 41: Limited Time Offers Driving Frequency
LIMITED TIME OFFERS DRIVING FREQUENCY 41
Slide 42: Annual Breaded Chicken Sandwich QSR Servings
2.7B Annual Breaded Chicken Sandwich QSR Servings Source: Circana Crest® U.S. QSR 12ME Dec ‘24 42
Slide 43: Poised for Growth
POISED FOR GROWTH QSR Chicken Servings* +16% since 2017 Source: Circana Crest® U.S. QSR 12ME Dec ’24 vs. 12ME Dec ’17 *Total Chicken includes Chicken Nuggets, Chicken Strips, Chicken Wings, Fried Chicken, 43 Breaded Chicken Sandwich, Chicken Salad Sandwich, Grilled Chicken Sandwich
Slide 44: Famous for Chicken
OUR MISSION IS CLEAR FAMOUS FOR CHICKEN 44
Slide 45: Famous for Frosty
FAMOUS FOR FROSTY 1.7B Annual Frozen Dessert QSR Servings Source: Circana Crest® U.S. QSR 12ME Dec ‘24 45
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Slide 47: Endless Beverage Possibilities
ENDLESS BEVERAGE POSSIBILITIES 34.7B Annual QSR Beverage Servings (excl. tap water) Source: Circana Crest® U.S. QSR 12ME Dec ‘24 47
Slide 48: Morning Beverage Line Up to Match Strength of Our Core
MORNING BEVERAGE LINE UP TO MATCH STRENGTH OF OUR CORE 48
Slide 49: Value Has Always Started with Quality at Wendy's
VALUE HAS ALWAYS STARTED WITH QUALITY AT WENDY’S 49
Slide 50: World-Famous Marketing
i) WORLD-FAMOUS MARKETING
Slide 51: Our Personality Is as Fresh as Our Food
OUR PERSONALITY IS AS FRESH AS OUR FOOD 51
Slide 52: Fresh Famous Collaborations
WORLD-FAMOUS MARKETING FRESH FAMOUS COLLABORATIONS NEVER BEEN DONE BEFORE, FRESH BRAND FAMOUS FOOD COLLABORATIONS 52
Slide 53: Fresh Famous Collaborations
WORLD-FAMOUS MARKETING FRESH FAMOUS COLLABORATIONS NEVER BEEN DONE BEFORE, FRESH BRAND FAMOUS FOOD COLLABORATIONS 53
Slide 54: Extend Experience Through Digital Channels
WORLD-FAMOUS MARKETING EXTEND EXPERIENCE THROUGH DIGITAL CHANNELS § Leveraging app for enhanced personalization § Creating trial and frequency for menu items and day parts § Amplifying promotions and campaigns through games and rewards 54
Slide 55: Fresh, Famous Collaborations
WORLD-FAMOUS MARKETING FRESH, FAMOUS COLLABORATIONS X 55
Slide 56: Our Playbook
OUR PLAYBOOK CUSTOMER-FIRST FRESH, WORLD-FAMOUS APPROACH FAMOUS FOOD MARKETING 56
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Slide 58: Abigail Pringle
ABIGAIL PRINGLE PRESIDENT, U.S.
Slide 59: Iconic U.S. Presence
IC NIC $12B+ Annual ~6K Restaurants 200M Customers U.S. Sales in the U.S. Visit Every Year
Slide 60: Our Long-Term Strategy
OUR LONG-TERM STRATEGY DOUBLE DOWN ON DELIVER AN EXCEPTIONAL ACCELERATE FRESH, FAMOUS FOOD CUSTOMER EXPERIENCE GLOBAL UNIT GROWTH CREATING VALUE FOR FRANCHISEES AND SHAREHOLDERS 60
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Slide 62: Our Long-Term Strategy
OUR LONG-TERM STRATEGY DOUBLE DOWN ON DELIVER AN EXCEPTIONAL ACCELERATE FRESH, FAMOUS FOOD CUSTOMER EXPERIENCE GLOBAL UNIT GROWTH 62
Slide 63: Perfect Every Time
DELIVERING ON OUR PROMISE “FRESH, FAMOUS FOOD… MADE RIGHT… FOR YOU.” PERFECT EVERY TIME.
Slide 64: Model of Excellence
MODEL OF EXCELLENCE MODEL RESTAURANT + MODEL PERFORMANCE + MODEL P&L
Slide 65: Best GMs, Growing AUVs, High Satisfaction, Strong Margins
BEST GMs GROWING in the Business Average Unit Volumes HIGH STRONG Customer Satisfaction Restaurant Margins
Slide 66: Best GMs, Growing AUVs, High Satisfaction, Strong Margins
BEST GMs GROWING in the Business Average Unit Volumes HIGH STRONG Customer Satisfaction Restaurant Margins
Slide 67: Potential
BEST GMs GROWING in the Business Average Unit Volumes POTENTIAL HIGH STRONG Customer Satisfaction Restaurant Margins
Slide 68: Assessing and Coaching to Create Model Restaurants
WENDY’S POTENTIAL ASSESSING AND COACHING TO CREATE MODEL RESTAURANTS § Consistency requires one best way § New scored Model Restaurant assessments § Targeted training and development § Detailed restaurant action planning § Coach for performance 68
Slide 69: Model Performance Scorecard & Ranking
WENDY’S POTENTIAL MODEL PERFORMANCE SCORECARD & RANKING Customer Visits & Frequency Customer Satisfaction Operations Excellence People Excellence Financial Performance 69
Slide 70: Reinvented Field Structure to Support Model of Excellence
WENDY’S POTENTIAL REINVENTED FIELD STRUCTURE TO SUPPORT MODEL OF EXCELLENCE § Doubling number of restaurant visits § Investing in added field operations manager roles to increase number of model restaurants § Investing in new business leader roles accountable for franchisee performance § Targeted co
Slide 71: Model P&L
MODEL P&L = EXCEPTIONAL CUSTOMER EXPERIENCE + OPERATING MOST EFFICIENTLY
Slide 72: Model P&L: Margin Opportunity
MODEL P&L = EXCEPTIONAL CUSTOMER EXPERIENCE + OPERATING MOST EFFICIENTLY MARGIN OPPORTUNITY: 200+ BPS
Slide 73: Creating More Compelling Restaurant Economics
CREATING MORE COMPELLING RESTAURANT ECONOMICS P&L COLLECTION & BENCHMARKING OPERATIONS PRODUCTIVITY UPGRADES 2024 MENU STRATEGY EVOLUTION 2028 DRIVING EFFICIENCY THROUGH TECHNOLOGY LABOR MODEL EVOLUTION 73
Slide 74: P&L Collection & Benchmarking
P&L COLLECTION & BENCHMARKING Proactive Financial Management § Sets the standard for restaurant-level profitability (Model P&L) § Identifies strengths, areas of opportunity, and common outliers § Informs brand development strategies such as: § Marketing Promotions § Menu Development § New Restaurant
Slide 75: Operations Productivity Upgrades
OPERATIONS PRODUCTIVITY UPGRADES 75
Slide 76: Menu Strategy Evolution
MENU STRATEGY EVOLUTION § Menu evolution will grow top line sales by increasing consumer relevancy § Menu evolution will also create opportunities for increased profits § Menu mix shifts create opportunities for improved profit margins § Simplification will improve operational execution, customer ex
Slide 77: Driving Efficiency Through Technology
DRIVING EFFICIENCY THROUGH TECHNOLOGY 77
Slide 78: Model of Excellence
MODEL OF EXCELLENCE = DELIVERING ON BRAND PROMISE AND ACHIEVING MODEL PROFITABILITY
Slide 79: Our Long-Term Strategy
OUR LONG-TERM STRATEGY DOUBLE DOWN ON DELIVER AN EXCEPTIONAL ACCELERATE FRESH, FAMOUS FOOD CUSTOMER EXPERIENCE GLOBAL UNIT GROWTH 79
Slide 80: Accelerating U.S. Net New Growth Rate Through 2028
ACCELERATING U.S. NET NEW GROWTH RATE THROUGH 2028 5,933 2024 Footprint +300 Net New Restaurants Growth Opportunity Per Capita Through 2028 Most Developed More Developed Developed Underdeveloped Most Underdeveloped 80
Slide 81: Targeted Strategies to Accelerate U.S. New Restaurant Growth
TARGETED STRATEGIES TO ACCELERATE U.S. NEW RESTAURANT GROWTH EXCEPTIONAL COMPELLING FRESH, CUSTOMER ECONOMIC FAMOUS FOOD EXPERIENCE MODEL FUTURE FORWARD DESIGN GROWTH-MINDED FRANCHISEES COMPANY LEADERSHIP 81
Slide 82: Future Forward Design
FUTURE FORWARD DESIGN CONTEMPORARY DESIGN DIGITAL FIRST HIGHLY EFFICIENT OPERATING MODEL CAPEX SAVINGS 82
Slide 83: Growth-Minded Franchisees
GROWTH-MINDED FRANCHISEES 83
Slide 84: Company Leadership
COMPANY LEADERSHIP § Investing in industry leading franchise incentives § Doubling net growth rate of new company-operated restaurants § Leveraging Build-to-Suit program to fuel growth for existing and new franchisees § Providing construction services to help franchisees grow 84
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Slide 86: E.J. Wunsch
E.J. WUNSCH PRESIDENT, INTERNATIONAL
Slide 87: Our Long-Term Strategy
OUR LONG-TERM STRATEGY DOUBLE DOWN ON DELIVER AN EXCEPTIONAL ACCELERATE FRESH, FAMOUS FOOD CUSTOMER EXPERIENCE GLOBAL UNIT GROWTH 87
Slide 88: Our Momentum
i) OUR MOMENTUM
Slide 89: Brand Is Resonating Around the World
OUR MOMENTUM BRAND IS RESONATING AROUND THE WORLD Last 3 Years Today ~300 Net New Restaurants 1,300+Restaurants 9% Net Unit Growth CAGR 33Markets +14% Systemwide Sales Growth CAGR* ~$2B Annual Systemwide Sales* Internal data as of FY 2024 year-end and includes new markets launched in 2025. *Non-GAAP
Slide 90: Poised to Accelerate Growth
POISED TO ACCELERATE GROWTH 2,000 Locations 11% 4-Year Net Unit by 2028 Growth CAGR 90
Slide 91: How We Win
HOW WE WIN
Slide 92: Global Citizens
HOW WE WIN GLOBAL CITIZENS Select the Right Markets Local Team & High-Value Partnerships Extend Supply Chain & Scale Efficiently Better Food, Better Restaurants Build Consumer Connections 92
Slide 93: Model: Canada
HOW WE WIN MODEL: CANADA 438 Establish Local Team Regional Headquarters Local Team and High-Value Partnerships 70% of Franchisees Growing Footprint Restaurants Better Food, Better Restaurants Restaurant AUV $3M CAD Build Consumer Connections National Advertising, Loyalty Program, Mobile App ~$1B Rev
Slide 94: Where We Win
WHERE WE WIN
Slide 95: Growth Markets
WHERE WE WIN GROWTH MARKETS +300 APAC & MIDDLE EAST +150 EUROPE +125 LATIN AMERICA +125 CANADA Represents anticipated additional restaurants by the end of 2028 95
Slide 96: APAC & Middle East Stronghold
WHERE WE WIN APAC & MIDDLE EAST STRONGHOLD INDIA & MIDDLE EAST § Fastest Growing Markets (150+ net new units over last 3 years) § Well Capitalized Master Franchise Partners § Supply Chain Innovation Enabling Superior Quality § Localized Menus 96
Slide 97: Europe Stronghold
WHERE WE WIN EUROPE STRONGHOLD UNITED KINGDOM § Company and Franchised Market § Leveraging Build-to-Suit to Accelerate § Integrated European Supply Network § Key Resources Located in Market § Enabling Expansion into Other European Countries 97
Slide 98: Latin America Stronghold
WHERE WE WIN LATIN AMERICA STRONGHOLD MEXICO § Multiple Franchisees Engaged in Growth § Expanding into Guadalajara § Investments in Local Resources § National Distribution Partnership § National Marketing Fund 98
Slide 99: Recipe for Success
i) RECIPE FOR SUCCESS
Slide 100: Better Food, Better Restaurants
RECIPE FOR SUCCESS BETTER FOOD, BETTER RESTAURANTS GLOBALLY GREAT, MODERN DESIGN, LOCALLY EVEN BETTER FLEXIBLE FORMATS 100
Slide 101: Flexible Real Estate Strategy
SAUDI ARABIA CANADA MEXICO UNITED KINGDOM FLEXIBLE REAL ESTATE STRATEGY PUERTO RICO CHILE AUSTRALIA INDIA
Slide 102: Elevation & Globalization of Supply Chain
RECIPE FOR SUCCESS ELEVATION & GLOBALIZATION OF SUPPLY CHAIN § Leverage Scale § Key Hires § Deeper Connections with North America § Strategic Partnerships 102
Slide 103: Poised to Accelerate Growth
POISED TO ACCELERATE GROWTH 2024 2028 1,300+ Locations 2,000 Locations 9% 3-Year Net Unit Growth CAGR 11% 4-Year Net Unit Growth CAGR 103
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Slide 105: Ken Cook
KEN COOK CHIEF FINANCIAL OFFICER
Slide 106: Long Term Financial Algorithm, 2028 Targets, Capital Allocation Policy
LONG TERM FINANCIAL ALGORITHM 2028 TARGETS CAPITAL ALLOCATION POLICY
Slide 107: Our Long-Term Strategy
OUR LONG-TERM STRATEGY DOUBLE DOWN ON DELIVER AN EXCEPTIONAL ACCELERATE FRESH, FAMOUS FOOD CUSTOMER EXPERIENCE GLOBAL UNIT GROWTH CREATING VALUE FOR FRANCHISEES AND SHAREHOLDERS 107
Slide 108: Our Value Creation Framework
OUR VALUE CREATION FRAMEWORK Value Creation Value Creation for FRANCHISEES for SHAREHOLDERS § SRS Growth § Systemwide Sales Growth § Restaurant Profitability § Disciplined Capital Allocation § New Unit Growth § Increased Adj. EBITDA & Cash Generation 108
Slide 109: Our Long-Term Financial Algorithm
OUR LONG-TERM STRATEGY OUR LONG-TERM FINANCIAL ALGORITHM 3-4% 5-6% 7-8% Annual Net Annual Systemwide Adj. EBITDA Unit Growth Sales Growth* Growth* * Non-GAAP financial measure. See Appendix for additional information. 109
Slide 110: 2028: Our Growth Targets
OUR LONG-TERM STRATEGY 2028: OUR GROWTH TARGETS GLOBAL UNITS SYSTEMWIDE SALES* ADJUSTED EBITDA* 8,100-8,300 $17.5-$18.0B $650-$700M 7,240 $14.5B $544M 2024 2028E 2024 2028E 2024 2028E Add ~1,000 net Grow systemwide Increase Adjusted restaurants to the system sales by up to $3.5B EBITDA by up to 30%
Slide 111: Global Systemwide Sales Growth in 2028
OUR LONG-TERM STRATEGY GLOBAL SYSTEMWIDE SALES GROWTH IN 2028 $17.5 - $18.0B ~30% US ~70% International SRS $14.5B NET UNIT GROWTH 2024 2028E *Visual chart not to scale 111
Slide 112: Global Systemwide Sales Growth in 2028
OUR LONG-TERM STRATEGY GLOBAL SYSTEMWIDE SALES GROWTH IN 2028 $17.5 - $18.0B ~30% US ~70% International SRS $14.5B NET UNIT GROWTH § Global Next Gen Design § Development Incentives § Localized Resources 2024 § Globalizing Supply Chain 2028E *Visual chart not to scale 112
Slide 113: Global Systemwide Sales Growth in 2028
OUR LONG-TERM STRATEGY GLOBAL SYSTEMWIDE SALES GROWTH IN 2028 $17.5 - $18.0B ~30% US ~70% International SRS § Menu Innovation $14.5B NET UNIT § Collaborations GROWTH & Promotions § Digital Engagement 2024 2028E *Visual chart not to scale 113
Slide 114: Global Systemwide Sales Growth in 2028
OUR LONG-TERM STRATEGY GLOBAL SYSTEMWIDE SALES GROWTH IN 2028 $17.5 - $18.0B ~30% US ~70% International SRS § Menu Innovation $14.5B NET UNIT § Collaborations GROWTH & Promotions § Digital Engagement § Global Next Gen Design § Development Incentives § Localized Resources 2024 § Globalized Supply Cha
Slide 115: Adjusted EBITDA Drivers in 2028
OUR LONG-TERM STRATEGY ADJUSTED EBITDA DRIVERS IN 2028 $650-$700M RESTAURANT MARGIN EXPANSION $544M SALES GROWTH § Investing in Field Resources § Unit Development § Digitally Enabled § SRS Growth Ordering Experience § Increasing Labor Productivity 2024 2028E *Visual chart not to scale 115
Slide 116: Capital Allocation
i) CAPITAL ALLOCATION
Slide 117: Our Capital Allocation Priorities
OUR CAPITAL ALLOCATION PRIORITIES 1 2 3 4 CONTINUE TO PAY AN MAINTAIN A UTILIZE INVEST IN ATTRACTIVE STRONG EXCESS THE BUSINESS DIVIDEND BALANCE CASH TO FOR GROWTH SHEET REPURCHASE SHARES 117
Slide 118: Disciplined Investment in the Business Is Our #1 Priority
1 CONTINUE TO INVEST IN THE BUSINESS FOR GROWTH DISCIPLINED INVESTMENT IN THE BUSINESS IS OUR #1 PRIORITY Digital Capabilities Development ~50% ~30% § Disciplined approach to investing in highest return opportunities ~$115M § Growth investments focused on: Annual Capex Spend § New Unit Development 2
Slide 119: Accelerating Restaurant Development
1 CONTINUE TO INVEST IN THE BUSINESS FOR GROWTH ACCELERATING RESTAURANT DEVELOPMENT BUILD-TO-SUIT PROGRAM Accelerate New Unit Growth around the World ~$70M2025 Company Attractive Return on Investment for the Company Investment Improves Payback Period for Franchisees 119
Slide 120: Target Dividend Payout Ratio
2 PAY AN ATTRACTIVE DIVIDEND TARGET DIVIDEND PAYOUT RATIO TARGET PAYOUT RATIO 50-60% of Adjusted Earnings Future dividend payments, if any, will be at the discretion of our Board of Directors. 120
Slide 121: Target Leverage Ratio
3 MAINTAIN A STRONG BALANCE SHEET TARGET LEVERAGE RATIO 5.0x Maintain Investment Grade 4.3x Debt Rating on Securitized Notes 3.5x 3.5x – 5.0x Long-Term Leverage Ratio $830M in Debt Maturities through 2028 2024 2028E 121
Slide 122: Attractive Opportunity for Share Repurchase
4 UTILIZE EXCESS CASH TO REPURCHASE SHARES ATTRACTIVE OPPORTUNITY FOR SHARE REPURCHASE EV / NTM EBITDA Multiple 20.0x Up to $200M 10.0x 2025 Planned Share Repurchases LARGEST QSR BURGER PEERS 122
Slide 123: Significant Free Cash Flow Generation
OUR GROWTH PLANS TRANSLATE TO SIGNIFICANT FREE CASH FLOW GENERATION $1.2B $1.1B 4 Year Cumulative FCF* $279M 2024 2025 - 2028E Visual chart not to scale * Non-GAAP financial measure. See Appendix for additional information, including certain reconciliations. 123
Slide 124: Key Takeaways
KEY TAKEAWAYS We are WELL-POSITIONED to leverage Wendy’s STRENGTHS and BRAND EQUITY to SCALE OUR SYSTEM We have a FOCUSED STRATEGY that we are executing with a new level of OPERATIONAL INTENSITY We will DRIVE PROFITABLE GROWTH to create value for OUR CUSTOMERS, OUR FRANCHISEES and OUR SHAREHOLDERS 1
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Slide 126: Q&A
Q&A
Slide 127: Thank You
THANK YOU
Slide 128: Appendix
APPENDIX
Slide 129: 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 EBITDA, free cash flow, and systemwide sales). These non-GAAP financial measures exclude certain expen
Slide 130: Reconciliation of Net Income to Adjusted EBITDA and Revenue
Reconciliation of Net Income to Adjusted EBITDA and Revenue to Adjusted Revenues 130
Slide 131: Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow 131