EX-99.1 2 exhibit99-1_01272011.htm EXHIBIT 99.1 exhibit99-1_01272011.htm
Investor Day
The Lighthouse at Chelsea Piers
January 27, 2011
 
 

 
Welcome
John Barker
Chief Communications Officer
 
 

 
This presentation, and certain information that management may discuss in connection with this presentation, may
contain statements that are not historical facts, including, importantly, 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 our 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 press release issued on January 26, 2011 and in the “Special Note
Regarding Forward-Looking Statements and Projections” and “Risk Factors” sections of our most recent Form 10-K
and subsequent 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 earnings before interest, taxes, depreciation and amortization, or
EBITDA, and adjusted EBITDA. Reconciliations of non-GAAP financial measures to the most directly comparable GAAP
financial measure are in the Appendix to this presentation, and are included in our press release issued on January 26,
2011 and posted on the Investor Relations section of our website.
3
Forward-Looking Statements and Non-GAAP Financial Measures
 
 

 
Agenda
 Corporate Overview Roland Smith
 Financial Overview Steve Hare
 Wendy’s Overview David Karam
 Wendy’s Operations Steve Farrar
 Wendy’s Marketing Ken Calwell
 Wendy’s Breakfast Update  David Karam & Steve Farrar
 Wendy’s Franchisee Health & Development David Karam
 International Overview Darrell van Ligten
  
 Chairman’s Remarks Nelson Peltz
  
 Q&A and Closing Remarks Roland Smith
4
 
 

 
Corporate Overview
Roland Smith
President and Chief Executive Officer
 
 

 
Maximize
Value For
Stockholders
6
 
 

 
 
 

 
 Introducing exciting, new products
 Expanding dayparts - especially breakfast
 Modernizing our facilities
 Pursuing global expansion
 Using balance sheet and free cash flow to grow business
 Continuing dividends and share repurchases
8
Growth Initiatives
 
 

 
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11
 
 

 
 
 

 
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14
More than 6,500 restaurants
Key driver of shareholder return
Highest-quality food in QSR
Growing Wendy’s
 
 

 
15
 Re-engineered our brand positioning
 Rebuilt our product development processes
 Improved restaurant-level operations
 Reduced overhead costs
 Significantly improved store-level profitability
 Positioned brand for long-term financial success
 
 

 
Drive more sales over
our fixed cost base
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Formula for Growing EBITDA…
 
 

 
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$1.4 million
in average unit
volumes
 
 

 
320 basis point improvement
in restaurant-level margins
over the past 2 years
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Has Generated…
 
 

 
Brand Positioning
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$150,000 AUVs
$150,000 AUVs
Wendy’s New Breakfast
 
 

 
 Expect 1,000 company and franchise
 restaurants serving breakfast
 by end of 2011
25
 
 

 
 
 

 
8,000 store
opportunity
8,000 store
opportunity
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 50 stores in Argentina
 50 stores in Argentina
 Desarollo y Gestion (D&G)
 Desarollo y Gestion (D&G)
  Companies in retail and food sectors
  Companies in retail and food sectors
  Significant experience in Argentina
  Significant experience in Argentina
28
Newest International Franchise
Development Agreement
 
 

 
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North America - Store Growth
~6,000 store base
1,000
new stores
 
 

 
Financial
Outlook
32
 
 

 
 Transition year
  Explore sale of Arby’s
  Reduce corporate G&A to support
 single brand
  Invest in Wendy’s growth
33
Financial Outlook - 2011
 
 

 
Average annual EBITDA
growth of 10-15%,
beginning in 2012
34
Financial Outlook - Longer Term