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Wendy’s Overview
David Karam
President
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Strengthening our Foundation
Exceptional Customer Experience… Every Day, Every Restaurant
— Improved operations
— Expanded margins
— Exceptional product pipeline
— Relevant marketing
— Increased ad awareness
— Effective performance measures
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Performance vs. Competition
Contributing Factors - 2003 to 2008
— Product quality
— Value transactions
— Advertising
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Core Products
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Value Products
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— Variety
— Consistency
— Signature
Products
Products
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Inconsistent Advertising 2003-2008
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agencies
campaigns
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2008-2010
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2008 | 2009 | 2010 | |||||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | |||
-0.2 | 1.1 | 0.2 | 3.7 | 1.0 | -0.4 | -0.1 | -3.0 | 0.8 | -1.7 | -1.7 | |||
2.9 | 3.4 | 4.7 | 5.0 | 4.7 | 3.5 | 2.5 | 0.1 | 1.5 | 3.7 | 5.3 | |||
5.4 | 5.5 | 3.0 | 1.9 | 1.6 | -4.5 | -4.6 | -3.3 | -6.1 | -1.5 | -4.2 | |||
3.9 | 3.8 | 0.5 | 2.1 | -5.1 | -6.1 | -5.2 | -8.7 | -6.1 | -7.4 | -5.0 | |||
-0.1 | -0.4 | -0.8 | 1.7 | 0.4 | -1.0 | -6.0 | -11.1 | -8.6 | -9.4 | -4.0 | |||
3.2 | -0.4 | -0.6 | -3.6 | -3.6 | -5.4 | -4.5 | -6.5 | -13.2 | -6.0 | -6.4 |
Quarterly SSS Trends - Hamburger Chain
% Change
Wendy’s Underperformed
Wendy’s Outperformed
Source: Company Reports
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Strengthening Our Foundation
— Understand our core customers
— Instill management philosophy across
entire system
entire system
— Develop critical performance metrics and
align field and corporate management to them
align field and corporate management to them
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authentic
believable
aspirational
defendable
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franchisee support
food safety
innovation
restaurant profitability
operations
employee engagement
facilities
value
communications
menu development
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validates strategies
fosters innovation
signals success or failure
identifies best practices
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key to building customer loyalty
“execution is a strategy”
systematic and sustaining
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EXCEPTIONAL
CUSTOMER
EXPERIENCE
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service initiatives
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people initiatives
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people initiatives
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Large Hamburger Unit Gains
4 Week Base
1st Media Flight
2nd Media Flight
Dave’s Hot n’ Juicy Cheeseburgers
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more than price…
but price is critical
but price is critical
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+
creative
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