The Wendy's Company (WEN) 8-K Regulation FD Disclosure

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

11

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