Wendy's Company (the) · NASDAQ:WEN
Wendy's Company (the) — Q1 2017 Earnings Presentation
28 slides from Wendy's Company (the)'s earnings presentation, May 10, 2017
Slide 1: First Quarter 2017 Conference Call
First Quarter 2017 Conference Call May 10, 2017 © Quality Is Our Recipe, LLC Exhibit 99.1
Slide 2: Peter Koumas, Director – Investor Relations
Peter Koumas Director – Investor Relations © Quality Is Our Recipe, LLC
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 not historical facts, including information concerning possible or assumed future results of ou
Slide 4: Agenda
THE WENDY'S COMPANY | Agenda CEO Update Financial Update Q&A
Slide 5: Todd Penegor, President & Chief Executive Officer
Todd Penegor President & Chief Executive Officer © Quality Is Our Recipe, LLC
Slide 6: Q1 Highlights
THE WENDY'S COMPANY | Q1 Highlights * See reconciliation of non-GAAP financial measures in the Appendix. 17th consecutive quarter of positive NA SRS NA SRS increase 1.6%; 5.2% on a two-year basis Global expansion momentum continues; 33 global restaurant openings in Q1 Improvement of 530bps in adj. E
Slide 7: North America Same-Restaurant Sales
THE WENDY'S COMPANY | North America Same-Restaurant Sales 6.8% 5.2%
Slide 8: Global Footprint Expansion Continues
Global Footprint Expansion Continues THE WENDY'S COMPANY | 0.08% North America Restaurant Openings International Restaurant Openings ’17 Net New Growth Rate Goal of ~12.5% (~55) ’17E Net New Growth Rate ~1% (~60) 113 ’17 Net New Growth Rate Goal of ~12.5% (~55) ’17E Net New Growth Rate ~12.5% (~55)
Slide 9: Image Activation Momentum Continues
THE WENDY'S COMPANY | Image Activation Momentum Continues *Represents Total System Cumulative Reimages & New Builds and includes Franchise Reimages open or under construction 118 Buy & Flip transactions completed in Q1. On track to achieve target of 400 ~42% 33%
Slide 10: Systemwide Sales Growth
Systemwide Sales Growth THE WENDY'S COMPANY | *Excludes Venezuela; systemwide sales growth is calculated on a constant currency basis
Slide 11: Transforming Our Franchise System Through Buy & Flips
Transforming Our Franchise System Through Buy & Flips THE WENDY'S COMPANY | ~34% of Global System Image Activated at the end of Q1 2017 113
Slide 12: Quality Is Our Recipe
COMPETITIVE PRICE NDY'S QUALITY GREAT EXPERIENCE WORTH WHAT | PAY FRIENDLY ACCURATE FAST AN EXPERIENCE THAT BRINGS ME BACK QUALITY IS OUR RECIPE j Delight every wonesr meaeoinrs CRAVEABLE TAS FOOD! LOVE customer. CLEAN & WELL MAINTAINED. UP TO DATE EASY & CONVENIENT UPBEAT & COMFORTABLE APLACE | LOV
Slide 13: Brand Health Metrics Continue Improvement
Brand Health Metrics Continue Improvement THE WENDY'S COMPANY | Source: Wendy’s Consumer Tracking; Number of Brand Health Metrics Showing YOY Improvement
Slide 14: Gunther Plosch, Chief Financial Officer
Gunther Plosch Chief Financial Officer © Quality Is Our Recipe, LLC
Slide 15: First Quarter Financial Highlights
First Quarter Financial Highlights THE WENDY'S COMPANY | 2017 2016 B/(W) Company Restaurant Margin 16.7% 17.2% (50) bps G&A $52.4 $64.7 19.0% Adjusted EBITDA* $89.2 $98.1 (9.1%) Adjusted EBITDA Margin* 31.2% 25.9% +530 bps Adjusted EPS* $0.09 $0.11 (18.2%) YTD Free Cash Flow $23.8 $12.0 98.3% $ Mils
Slide 16: Q1 2017 vs. Q1 2016 Adjusted EBITDA
THE WENDY'S COMPANY | Q1 2017 vs. Q1 2016 Adjusted EBITDA $ Mils (Unaudited)
Slide 17: Q1 2017 vs. Q1 2016 Adjusted EPS
THE WENDY'S COMPANY | Q1 2017 vs. Q1 2016 Adjusted EPS (Unaudited)
Slide 18: G&A Commitments Finalized
THE WENDY'S COMPANY | G&A Commitments Finalized Expect to achieve approx. three-quarters of ~$35 million in savings by end of 2018 Anticipate total expense of ~$28 to $33 million; cash expenditures of ~$23 to $27 million Cash expenditures expected to begin in second half of 2017, ending in 2019 Appr
Slide 19: Returning Cash to Shareholders
THE WENDY'S COMPANY | Returning Cash to Shareholders Repurchased 1.3 million shares for $17.8 million in Q1 ~$132 million remains against the $150 million share repurchase authorization Q1 ending cash balance of $193 million
Slide 20: Flexible Capital Structure Supports Growth Initiatives
Flexible Capital Structure Supports Growth Initiatives THE WENDY'S COMPANY | 4/2/2017 TTM Leverage Ratio (excl. Cap leases): 5.5x Target Leverage Ratio: 5-6x $875 $900 $500 $100 *Notional amounts shown as of issuance date; 1% amort is paid per annum Q1 2017 Net Debt: $2.1B (excl. Cap Leases) / TTM A
Slide 21: 2017 Outlook
THE WENDY'S COMPANY | Updated Reaffirmed North America SRS of 2-3% 2017 Outlook G&A Expense at Low End of Previously Issued Range of $210 to $220M Commodity Inflation of ~1.5 to 2.0% Labor Inflation of ~4% Interest Expense of ~$115M Depreciation & Amortization Expense of ~$120M (incl. accelerated of
Slide 22: 2017 Investor Relations Calendar: Q2 (Tentative)
2017 Investor Relations Calendar: Q2 (Tentative) Wednesday, May 24: Stephens NDR (New York) Tuesday, May 30: UBS NDR (Mid-Atlantic) Thursday, June 1: RBC Consumer & Retail Conference (Boston) Wednesday, August 9 – Second Quarter Earnings THE WENDY'S COMPANY |
Slide 23: Q&A
Q&A
Slide 24: Appendix
Appendix
Slide 25: 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 included certain non-GAAP financial measures (i.e., adjusted EBITDA, adjusted EBITDA margin, adjusted earnings per share, adjusted tax rate, free cash flow and syst
Slide 26: Reconciliation of Net Income to Adjusted EBITDA
THE WENDY'S COMPANY | Reconciliation of Net Income to Adjusted EBITDA In Thousands (Unaudited)
Slide 27: Reconciliation of Net Income and Diluted EPS to Adjusted EPS
Reconciliation of Net Income and Diluted Earnings Per Share to Adjusted Income and Adjusted Earnings Per Share In Thousands except per-share amounts (Unaudited) THE WENDY'S COMPANY |
Slide 28: Slide 28