Investor Day
The Lighthouse at Chelsea Piers
January 27, 2011
Welcome
John Barker
Chief Communications Officer
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.
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.
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.
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.
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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
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Corporate Overview
Roland Smith
President and Chief Executive Officer
President and Chief Executive Officer
Maximize
Value For
Stockholders
Value For
Stockholders
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— 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
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Growth Initiatives
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More than 6,500 restaurants
Key driver of shareholder return
Highest-quality food in QSR
Growing Wendy’s
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— 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
our fixed cost base
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Formula for Growing EBITDA…
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$1.4 million
in average unit
volumes
in average unit
volumes
320 basis point improvement
in restaurant-level margins
over the past 2 years
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
restaurants serving breakfast
by end of 2011
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8,000 store
opportunity
opportunity
8,000 store
opportunity
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
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Newest International Franchise
Development Agreement
Development Agreement
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North America - Store Growth
~6,000 store base
1,000
new stores
new stores
Financial
Outlook
Outlook
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— Transition year
‒ Explore sale of Arby’s
‒ Reduce corporate G&A to support
single brand
single brand
‒ Invest in Wendy’s growth
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Financial Outlook - 2011
Average annual EBITDA
growth of 10-15%,
beginning in 2012
growth of 10-15%,
beginning in 2012
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Financial Outlook - Longer Term