EX-99.1 2 d571987dex991.htm CONFERENCE CALL SLIDE PRESENTATION MATERIALS

Second Quarter 2013 Conference Call July 23, 2013 Exhibit 99.1 © 2013 Oldemark LLC

© 2013 Oldemark LLC JOHN BARKER Chief Communications Officer 2

Today’s Agenda CEO Overview Emil Brolick Financial Update Steve Hare Q&A 3

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 July 23, 2013 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 July 23, 2013 and posted on www.aboutwendys.com. 4 Forward-Looking Statements and Non-GAAP Financial Measures

© 2013 Oldemark LLC EMIL BROLICK President & CEO 5

STRONG Q2 EARNINGS … ADJUSTED EBITDA & EPS 2013 OUTLOOK TRENDING TOWARD HIGH END OF RANGE BRAND TRANSFORMATION PROGRESS CONTINUES 2012 INITIATIVES CONTRIBUTING TO SOLID 2013 SYSTEM OPTIMIZATION TO IMPROVE EARNINGS QUALITY 6

Adjusted EBITDA* $102.1 mil vs. $89.1 mil Adjusted EPS* $0.08 vs. $0.05 Co.-Op. Rest. Margin 16.7% vs. 14.1% Co.-Op. SSS 0.4% vs. 3.2% 7 Preliminary Q2 2013 Highlights 2013 2012 *See reconciliation of Adjusted EBITDA and Adjusted EPS in the appendix. +15% +60% 3.6% 2-year +260bps

PRETZEL BACON CHEESEBURGER 8

9 Pretzel Love Songs Event with Nick Lachey CNN anchor Kate Bolduan TODAY with Kathie Lee and Hoda • More than One Billion Consumer Impressions • Over 60 Million views of promotional videos • National broadcast segments: • CNN ‘New Day’ and TODAY with Kathie Lee & Hoda • Partnered with celebrity Nick Lachey to host a Pretzel Love Songs media event to kick off the #PretzelLoveSongs digital campaign in NYC COVERAGE: PRETZEL BACON CHEESEBURGER PRETZEL BACON CHEESEBURGER PR / SOCIAL MEDIA HIGHLIGHTS PR / SOCIAL MEDIA HIGHLIGHTS

System Optimization Next Phase of Brand Transformation… 10 © 2013 Oldemark LLC

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12 Image / Experience Activation Core Organic Growth Strategies Shareholder Value-Enhancing Initiatives System Optimization Financial Management Global Growth Restaurant Utilization & Daypart Expansion New Restaurant Development North America Same-Store Sales Growth

13 • • Sell approx. 425 restaurants by mid-2014 Sell approx. 425 restaurants by mid-2014 • • Lower company ownership from 22% to 15% Lower company ownership from 22% to 15% • • Concentrate company ownership Concentrate company ownership • • Generate a higher restaurant operating margin Generate a higher restaurant operating margin with more focused portfolio with more focused portfolio Optimize Restaurant Portfolio

PROSPECTIVE BUYERS 425 RESTAURANTS • New and existing franchisees • Strong operators with proven success • Strong financially and well-capitalized • Growth mindset – commitment to Image Activation and new restaurant development • Demonstrated commitment to customer service

15 Recent Progress • Kansas City • 24 Wendy’s restaurants purchased from the company and agreement to acquire 13 restaurants from a franchisee • Largest Pizza Hut franchisee • Operated by current franchisee in Topeka, Kansas • 26 Wendy’s restaurants NPC Legacy Restaurant Group

16 Adj. EPS growth Adj. EPS growth Margin Margin Royalty income Royalty income Rent income Rent income Cash flow Cash flow Optimize Financial Performance Sales Sales G&A G&A Cap ex Cap ex Depreciation Depreciation Adj. EBITDA growth Adj. EBITDA growth ENHANCE QUALITY OF EARNINGS Lower Higher Maintain * Estimates based on Company’s current outlook.

Economics of System Optimization* 17 Royalties $25 M Rent $20 M G&A $30 M EBITDA Divested EBITDA Gained = * Estimates based on Company’s current outlook.

18 Organic Growth Organic Growth • • Continue to invest in core business Continue to invest in core business Shareholder Value Shareholder Value • • Opportunity for regular dividend growth and Opportunity for regular dividend growth and share repurchases share repurchases Optimize Shareholder Returns Optimize Shareholder Returns

STEVE HARE Chief Financial Officer Chief Financial Officer 19 © 2013 Oldemark LLC

20 Preliminary Q2 2013 Highlights Q2 2013 North America Same-Store Sales 1-Year 2-Year Company-Operated 0.4% 3.6% Franchise 0.3% 3.5% N.A. Company Restaurant Margin +260 bps Q2 2013 16.7% Q2 2012 14.1% N.A. Company Restaurant Margin +260 bps Q2 2013 16.7% Q2 2012 14.1% April June May

21 Preliminary Q2 2013 Financial Summary *See reconciliation of Adjusted EBITDA and Adjusted EPS in the appendix. Q2 2013 Q2 2012 % Change Sales 571.2 $ 566.1 $ 0.9% Franchise revenues 79.3 79.8 -0.5% Total revenues 650.5 $ 645.9 $ 0.7% Adjusted EBITDA* 102.1 $ 89.1 $ 14.6% Adjusted EPS* 0.08 $ 0.05 $ 60.0% ($ in millions except per share amounts) (Unaudited)

Adjusted Income and Special Items Adjusted Income and Special Items 22 *See reconciliation of Adjusted Income and Adjusted EPS in the appendix. (In Thousands Except Per Share Amounts) (Unaudited) Per share Per share (a) Adjusted income and adjusted earnings per share* 31,779 $ 0.08 $ 19,221 $ 0.05 $ (Less) plus: Loss on early extinguishment of debt (13,137) (0.03) (15,621) (0.04) Depreciation of assets that will be replaced as part of the Image Activation initiative (2,654) (0.01) - - Facilities action charges, net (3,986) (0.01) (6,164) (0.01) Impairment of long-lived assets - - (2,018) (0.01) Costs associated with closed restaurants in other operating expense, net - - (911) (0.00) Total adjustments (19,777) (0.05) (24,714) (0.06) Net income (loss) 12,002 0.03 (5,493) (0.01) Net loss attributable to noncontrolling interests 222 0.00 - - Net income (loss) and earnings per share attributable to The Wendy's Company 12,224 $ 0.03 $ (5,493) $ (0.01) $ 2013 2012 Second Quarter

23 Selected Balance Sheet Highlights ($ in millions) (unaudited) Cash 489 $ Senior Debt 1,429 $ Capital Leases and Other Debt 42 Total Debt 1,471 $ TTM Adjusted EBITDA* 360 $ Total Debt / TTM Adjusted EBITDA* 4.1x Net Debt / TTM Adjusted EBITDA* 2.7x June 30, 2013 *See reconciliation of Adjusted EBITDA in the appendix.

2013 Outlook: Trending Toward High End of Range Adjusted EPS: $0.20 to $0.22, 18% to 29% increase vs. 2012 Estimates based on Company’s current outlook. 24 Adjusted EBITDA: $350 to $360 million, 5% to 8% increase vs. 2012

2013 Outlook 2013 Outlook Estimates based on Company’s current outlook. 25 • SSS of 2.0 to 3.0% • Restaurant margin of 14.2 to 14.5 percent • 25 Company IA openings & 100 Company IA reimages • Franchise Reimages: • $10 million in IA franchisee incentive program expense • 150 applications • 100 restaurants in active process, expect most to be open or under construction by end of 2013

26 25% Dividend Increase New quarterly rate $0.05 Payable: Sept. 17, 2013 Record Date: Sept. 3, 2013 $100 million Share Repurchase Authorization Intend to begin purchasing shares in Q3 Current authorization expires Dec. 29, 2013

Adjusted EBITDA growth rate in high-single to low-double-digit range Reaffirm Adjusted EPS growth rate to mid-teens Raising LONG-TERM OUTLOOK: 27 © 2013 Oldemark LLC

JOHN BARKER JOHN BARKER Chief Communications Chief Communications Officer Officer 28 © 2013 Oldemark LLC

2013 Events Aug. 7: 10-Q filing Aug. 15: Sell-side reception in New York Sept. 24: Image Activation tour in Philadelphia (host: CL King) Oct. 2: Image Activation tour in New York (host: JP Morgan) Nov. 7: 3Q earnings release Nov. 12: Image Activation tour in Dublin (host: Stephens) 29 Investor Relations Calendar

Q&A 30

Appendix 31

Reconciliation of Adjusted EBITDA to Net Income (Loss) Attributable to The Wendy's Company 32 2013 2012 2013 2012 Adjusted EBITDA 102,086 $ 89,073 $ 179,385 $ 152,954 $ Less: Depreciation and amortization (38,719) (35,947) (90,516) (68,258) Impairment of long-lived assets - (3,270) - (7,781) Facilities action charges, net (6,377) (9,988) (9,415) (16,131) Costs associated with closed restaurants in other operating expense, net - (1,477) - (1,477) Operating profit 56,990 38,391 79,454 59,307 Interest expense (18,964) (28,002) (39,928) (56,237) Loss on early extinguishment of debt (21,019) (25,195) (21,019) (25,195) Investment income and other income (expense), net 48 640 (2,223) 29,571 Income (loss) before income taxes and noncontrolling interests 17,055 (14,166) 16,284 7,446 (Provision for) benefit from income taxes (5,053) 8,673 (2,149) 1,795 Net income (loss) 12,002 (5,493) 14,135 9,241 Net loss (income) attributable to noncontrolling interests 222 - 222 (2,384) Net income (loss) attributable to The Wendy's Company 12,224 $ (5,493) $ 14,357 $ 6,857 $ (In Thousands) Reconciliation of Adjusted EBITDA to Net Income (Loss) Attributable to The Wendy's Company Six Months Three Months (Unaudited)

33 Reconciliation of Adjusted Income (Loss) and Adjusted Earnings Per Share to Net Income and Earnings Per Share Attributable to The Wendy's Company Per share Per share (a) Per share Per share Adjusted income and adjusted earnings per share 31,779 $ 0.08 $ 19,221 $ 0.05 $ 44,878 $ 0.11 $ 22,568 $ 0.06 $ (Less) plus: Loss on early extinguishment of debt (13,137) (0.03) (15,621) (0.04) (13,137) (0.03) (15,621) (0.04) Depreciation of assets that will be replaced as part of the Image Activation initiative (2,654) (0.01) - - (11,721) (0.03) - - Facilities action charges, net (3,986) (0.01) (6,164) (0.01) (5,885) (0.01) (9,972) (0.03) Gain on sale of investment, net - - - - - - 17,978 0.05 Impairment of long-lived assets - - (2,018) (0.01) - - (4,801) (0.02) Costs associated with closed restaurants in other operating expense, net - - (911) (0.00) - - (911) (0.00) Total adjustments (19,777) (0.05) (24,714) (0.06) (30,743) (0.07) (13,327) (0.04) Net income (loss) 12,002 0.03 (5,493) (0.01) 14,135 0.04 9,241 0.02 Net loss (income) attributable to noncontrolling interests 222 0.00 - - 222 0.00 (2,384) (0.00) Net income (loss) and earnings per share attributable to The Wendy's Company 12,224 $ 0.03 $ (5,493) $ (0.01) $ 14,357 $ 0.04 $ 6,857 $ 0.02 $ Reported number of shares used to calculate diluted income (loss) per share 397,884 389,978 396,789 392,001 Plus: Dilutive effect of stock options and restricted shares - 1,748 - - Adjusted number of shares used to calculate adjusted earnings per share 397,884 391,726 396,789 392,001 per share amounts. Included above is a reconciliation of the number of shares used to calculate adjusted earnings used to calculate basic and diluted loss per share, as the impact would have been anti-dilutive. of stock options and restricted shares, which were excluded from the reported number of shares (a) Adjusted earnings per share amounts, for the second quarter of 2012, include the dilutive effect 2013 2012 2013 2012 Reconciliation of Adjusted Income and Adjusted Earnings Per Share to Net Income (Loss) and Earnings Per Share Attributable to The Wendy's Company (In Thousands Except Per Share Amounts) (Unaudited) Three Months Six Months