EX-99.1 2 d433700dex991.htm EARNINGS CONFERENCE CALL SLIDE PRESENTATION MATERIALS

Third Quarter 2012 Earnings Conference Call November 8, 2012 ©2012 Oldemark LLC 1 Exhibit 99.1

JOHN BARKER CHIEF COMMUNICATIONS OFFICER 2

The Wendy’s Company Today’s Agenda The Wendy’s Company Opening Comments Emil Brolick Financial Update Steve Hare CEO Overview Emil Brolick Q&A 3

Forward-Looking Statements and Non-GAAP Financial Measures 4 The Wendy’s Company This presentation, and certain information that management may discuss in connection with this presentation, contains certain statements that are not historical facts, including information concerning possible or assumed future results of our operations. Those statements constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (The “Reform Act”). For all forward-looking statements, we claim the protection of the safe harbor for forward-looking statements contained in the Reform Act. Many important factors could affect our future results and could cause those results to differ materially from those expressed in or implied by our forward-looking statements. Such factors, all of which are difficult or impossible to predict accurately, and many of which are beyond our control, include but are not limited to those identified under the caption “Forward-Looking Statements” in our news release issued on November 8, 2012 and in the “Special Note Regarding Forward-Looking Statements and Projections” and “Risk Factors” sections of our most recent Form 10-K / Form 10-Qs. In addition, this presentation and certain information management may discuss in connection with this presentation reference non-GAAP financial measures, such as adjusted earnings before interest, taxes, depreciation and amortization, or adjusted EBITDA, and adjusted earnings per share. Adjusted EBITDA and adjusted earnings per share exclude certain expenses, net of certain benefits. Reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures are provided in the Appendix to this presentation, and are included in our news release issued on November 8, 2012 and posted on www.aboutwendys.com.

EMIL BROLICK PRESIDENT & CHIEF EXECUTIVE OFFICER 5

The Wendy’s Company 6 Core Organic Growth Strategies Shareholder Value-Enhancing Initiatives North America Same-Store Sales Growth North America Same-Store Sales Growth Image / Experience Activation Image / Experience Activation New Restaurant Development Restaurant Utilization & Daypart Expansion Global Growth Global Growth Financial Management Financial Management Restaurant Ownership Restaurant Ownership Optimization Optimization

The Wendy’s Company Recipe to Win Working! Reaffirming 2012 Outlook … Solid Growth Expected in 2013

The Wendy’s Company Making Significant Progress on Image Activation

The Wendy’s Company Sixth Consecutive Quarter of Positive SSS

The Wendy’s Company RECIPE TO WIN PEOPLE PEOPLE 5-Star Athletes 5-Star Athletes PRICE PRICE New QSR Quality at QSR Price New QSR Quality at QSR Price PRODUCT PRODUCT Play a different game. Superior Play a different game. Superior perceived quality, competitive price. perceived quality, competitive price. PROMOTION PROMOTION Strategically driven, tactically brilliant Strategically driven, tactically brilliant PLACE PLACE The complete brand experience The complete brand experience PERFORMANCE PERFORMANCE Keeping the brand promise Keeping the brand promise The Wendy’s Company 10

The Wendy’s Company Long-Term Adjusted EBITDA and Adjusted EPS Growth: High Single-Digit to Low Double-Digit Range

The Wendy’s Company Free Cash Flow & Flexibility of Our Balance Sheet

The Wendy’s Company 100% increase in dividend $100 million share repurchase program

STEVE HARE CHIEF FINANCIAL OFFICER 14

Q3 2012 Financial Highlights Company Restaurant Margin Q3 2012 13.9% Q3 2011 13.7% +20 bps 15 North America Same-Store Sales Company-Operated +2.7% Franchise +2.9% Systemwide +2.8% August – September July – August

Q3 2012 Financial Summary Q3 2012 Q3 2011 Better/ (Worse) Sales 558.3 $ 534.5 $ 23.8 $ Franchise revenues 78.0 76.9 1.1 Total revenues 636.3 $ 611.4 $ 24.9 $ Adjusted EBITDA from continuing operations* 84.5 $ 87.0 $ (2.5) $ (Unaudited) ($ in millions) 16 *See reconciliation of Adjusted EBITDA from continuing operations in the appendix.

Impact of Image Activation on Q3 and Q4 2012 Adjusted EBITDA Q3 $4 million negative impact from temporary closure of restaurants and other costs related to Image Activation Q4 Expect positive impact from 47 reimaged restaurants that re-opened late in Q3 and early in Q4 17

Income from Continuing Operations and Special Items 18 (Unaudited) ($ in thousands except per share amounts) After tax Per share (b) After tax Per share Adjusted income and adjusted earnings per share from continuing operations (a) 11,300 $ 0.03 $ 17,563 $ 0.05 $ (Less): Loss on early extinguishment of debt (30,926) (0.08) - - Facilities relocation and other transition costs (6,977) (0.02) - - Transaction related costs (89) (0.00) (15,019) (0.04) Total adjustments (37,992) (0.10) (15,019) (0.04) (Loss) income and earnings per share from continuing operations (26,692) $ (0.07) $ 2,544 $ 0.01 $ Third Quarter 2012 2011 (a) See reconciliation of Adjusted Income and Adjusted Earnings per Share from Continuing Operations in the appendix. (b) Adjusted earnings per share amounts for the third quarter include the dilutive effect of stock options and restricted shares. The effect of stock options and restricted shares was excluded from the reported number of shares used to calculate basic and diluted loss per share, as the impact would have been anti-dilutive. Included in the appendix is a reconciliation of the number of shares used to calculate adjusted earnings per share amounts.

Financial Management Financial Management Global Growth Global Growth Restaurant Utilization & Daypart Expansion Restaurant Ownership Restaurant Ownership Optimization Optimization New Restaurant Development Image / Experience Activation Image / Experience Activation North America Same-Store Sales Growth North America Same-Store Sales Growth 19 Core Organic Growth Strategies Shareholder Value-Enhancing Initiatives The Wendy’s Company

Free Cash Flow Highlights & Projections 20 (Unaudited) ($ in millions) 3 YearE 2011 2012E 2013E (Cumulative) Adjusted EBITDA* 331 $ 328 $ 355 $ 1,014 $ Cash Interest & Taxes (126) (121) (86) (333) Operating Cash Flow 205 207 269 681 Base Capital Spending (96) (125) (100) (321) Free Cash Flow 109 $ 82 $ 169 $ 360 $ *See reconciliation of Adjusted EBITDA from continuing operations in the appendix; represents midpoint of current outlook. Because certain income statement items needed to calculate income from continuing operations vary from quarter to quarter, the Company is unable to provide projections of income from continuing operations or a reconciliation of projected Adjusted EBITDA from continuing operations to projected income from continuing operations.

Capital Allocation to Support Organic Growth and Returns to Stockholders Strong cash position $454 million of cash Consistent free cash flow generation in excess of base capital expenditures Expected high return on investment from Image Activation Flexibility to fund both growth and returns to stockholders Up to $500 million of capital expenditures committed to Image Activation through 2015 Increased dividend in Q4 and stock repurchases authorized 21

Initiatives to Increase Stockholder Returns 100 percent increase in quarterly dividend Q4 increase from $0.02 to $0.04 per share Payable on Dec. 17 to stockholders of record on Dec. 3 $100 million share repurchase program 22

Selected Balance Sheet Highlights ($ in Millions) Cash 454 $ Senior Debt 1,424 $ Capital Leases and Other Debt 33 Total Debt 1,457 $ TTM Adjusted EBITDA* 318 $ Total Debt / TTM Adjusted EBITDA* 4.6x Net Debt / TTM Adjusted EBITDA* 3.2x September 30, 2012 23 *See reconciliation of Adjusted EBITDA from continuing operations in the appendix.

2012, 2013 and Long-Term Earnings Outlook 2012 24 Reaffirming Adjusted EBITDA from continuing operations in a range of $320 to $335 million Adjusted EBITDA from continuing operations in a range of $350 to $360 million Average annual Adjusted EBITDA and Adjusted EPS growth rates in high-single-digit to low-double- digit range 2013 Long-Term

EMIL BROLICK 25

Financial Management Financial Management Global Growth Global Growth Restaurant Utilization & Daypart Expansion Restaurant Ownership Restaurant Ownership Optimization Optimization New Restaurant Development Image / Experience Activation Image / Experience Activation North America Same-Store Sales Growth North America Same-Store Sales Growth 26 Core Organic Growth Strategies Shareholder Value-Enhancing Initiatives The Wendy’s Company

27 Delivers “A Cut Above” brand positioning • Creates a great work environment for our restaurant teams • Distinguishes Wendy’s from other traditional QSRs • Customers tell us they love the restaurants

The Wendy’s Company 28 10 Reimages Average Annualized Sales +25%

The Wendy’s Company Salt Lake City, UT

30 The Wendy’s Company Raleigh, NC

IMAGE ACTIVATION BRAND IMAGE PEOPLE & SERVICE CUSTOMER EXPERIENCE FOOD EXPERIENCE 31

Wendy's Brand Transformation 32 Restaurant Signage, Merchandising, & Uniforms Advertising, PR, Websites, Social Media & Packaging

TIER I TIER II TIER III 2013: Tiered Design Strategy to Optimize Returns The Wendy’s Company Targeted Investment* $650 to $750K $510 to 550K $375K Sales Lift > 25% 20% 7.5% *Estimates based on Company’s current outlook; excludes maintenance cap ex and other costs 33

The Wendy’s Company 34 Company 100 Reimages All Tiers 25 New Restaurants Franchise Expect 100 Reimages Majority Tier I Introduce Tier II and Tier III Designs 50 New Restaurants Estimates based on Company’s current outlook

Company Image Activation Plan For 2013 100 Reimages and 25 New Restaurants 35

The Wendy’s Company 36 Franchise Interest is Growing Offering incentive for Tier 1

The Wendy’s Company 37 Image Activation Expansion Estimates based on Company’s current outlook 2011 2015 750 50% of company restaurants Image Activated by end of 2015 50% of company restaurants Image Activated by end of 2015 approx. restaurants

The Wendy’s Company 38 System Optimization to Yield Multiple Benefits; Strengthen Overall System Strong Franchise Base New Franchisees Optimal System In-market concentration Restaurant performance Optimal franchise mix to maximize value High-quality operators Strong, more concentrated franchise platforms Ability to image activate Existing Company- Owned Footprint The Wendy’s Company

Financial Management Global Growth Restaurant Utilization & Daypart Expansion Restaurant Ownership Optimization New Restaurant Development Image / Experience Activation North America Same-Store Sales Growth Core Organic Growth Strategies Shareholder Value-Enhancing Initiatives 39 The Wendy’s Company

SOMETHING TO BUY SOMETHING TO BUY INTO 40 MARKETING: DUAL CAMPAIGN LEGS

Consumers Remember It! 41 53 49 42 35 AD AWARENESS +12% Source: Millward Brown/Brand Health Tracking Study (August 2012 vs. April 2012) QSR HAMBURGER COMPETITOR A QSR HAMBURGER COMPETITOR B QSR SANDWICH COMPETITOR A The Wendy’s Company

Consumers Respond To It! 42 BRAND CONSIDERATION +9% Source: Millward Brown/Brand Health Tracking Study (August 2012 vs. April 2012) QSR HAMBURGER COMPETITOR A QSR HAMBURGER COMPETITOR B QSR SANDWICH COMPETITOR A The Wendy’s Company

Successful Premium Product Launches 43 Asiago Ranch Chicken Club

Growing Share in Premium Segments 44 HAMBURGER CHICKEN SALADS JJA’11 SON’11 DJF’12 MAM’12 JJA’12 JJA’12 Source: The NPD Group / CREST ® NEW QSR COMPETITOR Y QSR HAMBURGER COMPETITOR X

Recent Awards and Recognition ZAGAT: #1 Overall Mega Chain ACSI: #1 in Hamburger Category You Gov Social Media: #2 Buzz Index QSR Magazine: Fastest Drive-Thru Food Network: Chef’s Choice Trademarks are the property of their respective owners. 45

JOHN BARKER CHIEF COMMUNICATIONS OFFICER 46

The Wendy’s Company 2013 Events January 16-17: ICR Conference in Miami, FL February 28: Q4 and 2012 Earnings Release Upcoming Investor Calendar 47

Q&A 48

49 The Wendy’s Company

Appendix 50

Reconciliation of Adjusted EBITDA from Continuing Operations to Net (Loss) Income Attributable to The Wendy’s Company 51

Reconciliation of Adjusted Income and Adjusted Earnings per Share from Continuing Operations to Net (Loss) Income and Earnings per Share Attributable to The Wendy’s Company 52 (a) Adjusted earnings per share amounts for the three and nine months ended September 30, 2012, include the dilutive effect of stock options and restricted shares. The effect of stock options and restricted shares was excluded from the reported number of shares used to calculate basic and diluted loss per share, as the impact would have been anti-dilutive. Included above is a reconciliation of the number of shares used to calculate adjusted earnings per share amounts.