Earnings call transcript Q4 2022

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Operator

Good morning. Welcome to the Wendy's Company Preliminary Earnings Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions] Thank you.

Investor may of your Director Freed, Relations, begin you conference. Kelsey

Kelsey Freed

Investor Today's and which and our good you, conference is website, morning, on presentation, Thank PowerPoint everyone. call irwendys.com. a webcast available Relations includes

differ affect begin, those discuss appears the from disclosure today our Various that materially reminds is we harbor release. certain results that could our at please the statements. forward-looking. end of forward-looking Before set safe our note projections information cause statement forth investors earnings to of results and This take the we factors may in

reference Also, in financial to some of our earnings at the today's comments reconciliation measures financial GAAP Investors will a refer release. measures of end comparable non-GAAP non-GAAP to of or should presentation directly most the measures. this

Chief results call Todd allocation our an Plosch, line will capital On today, Officer, open up our Financial QX and for preliminary and there, actions. XXXX our the questions. From President our and Officer, Executive Chief conference full-year provide briefly Gunther we and will Penegor; on our update review

With Todd. things will hand over to that, I

Todd Penegor

morning, revisit good policy. and our earlier fourth speak announce pleased performance quarter I'm you allocation a Kelsey, Thanks, bit with all this financial quarter preliminary our to to capital and of everyone.

Partners We for Before forward a I Trian morning. partnership diving was all to into on did our continuing strong shareholders. take a to look Trian moment of that with this results, with goal filed comment want delivering to Partners XXD our shared amended value

Today's morning. on our and providing full-year X. fourth announced XXXX sharing and confidence in outlook financial allocation earlier release forward results and we of of and against call drivers long-term on full I Wendy's strategy. capital to the as our our XXXX earnings results continues March we Partners pleased look strategic are XXXX make with actions detailed our part the growth this three growth focused quarter Trian our be will and progress meaningful preliminary to our pillars,

Now resiliency to global preliminary grew as by as quarter a our restaurants we same-restaurant supported double-digit compelling across we and global over strength results, system-wide fourth the and full-year brand of deliver turn as sales consecutive XXXX of the the two-year well year XXXX X.X%, to opened let's Wendy's growth. XXX sales which new highlight globe. second continue

XXX This dedication momentum with center support company-operated our This full-year staff approximately sales margin in strength, the course along adjusted improvement step-down the a pressures, basis restaurant work hard in almost improvement the of inflationary drove and million, the franchisees underpinned prior over point the the EBITDA and of versus year. of crews, our restaurant year. alongside X.X% $XXX

capital are the in morning. we alongside actions position we liquidity this our allocation strength driving supports robust The business the announced

is to We sales which have consecutive same-restaurant a XXth keep growth, global of XXXX streak in our we plan and beyond. alive year achieved

also the XXXX on and same-restaurant same-restaurant remarkable. double-digit global segments. our double-digit marked U.S. across with This in of both globe sales extended International sales truly two-year our which basis, a growth year is second consecutive two-year

unprecedented headwinds the the further and Our for us sales set over up year. weather Wendy's next system few the results last enabled to have years growth

sales two-year our accelerated the further as results the in picked even sales quarter. QX prior close Our momentum to same-restaurant year versus up

innovation years. accelerated and was strength U.S. sales same-restaurant our the price achieve all to sales Our of international our craveable coming This variety a across by bolsters regions. in business by The our further international continued outstanding strategic in of expansion compelling acceleration points supported growth in occasions. across our mix results supported confidence business,

trial extension and At with breakfast an with Biggie we of promote sandwiches the daypart, Bag. We delivered launched the fries, the Frosty product decadent Peppermint $X our Italian garlic and to enticed exciting continue Mozzarella ownable our Toast iconic French and Sticks full $X share croissant our billers updates call digital promotion our about customers. earnings including strong at resonate to I'm March. results, on excited more in breakfast sales to with and our our continue see another

I International team We to marking able unit am unit ongoing XX% in across opened new despite consecutive second up globe a our year net challenges unit XX% the XXXX growth new industry. the and unit acceleration. This was U.S. globally, approximately proud growth, the was net with X.X% spread development and net of growth deliver growth growth over of the restaurants our of across XXX making and respectively. net segments reaching

UK. Turning the to

under the We market two footprint have grown a to well restaurants years. and XX almost of

restaurants company-operated includes traditional XX first franchise-operated our year-end, restaurant. of As as well as this

for this open in for to drive-thru We and the all first expected XXXX in including ahead are excited weeks. market restaurant the beyond, coming growth our that's

franchise focus family the the on signals is much our new has off joining paid the Finally, excitement XX franchisees across with investment Wendy's opportunity recruiting XXXX. nearly brand. of the how there in just globe Wendy's in This

franchisees, new of new are the bring excited the and they that along experience that come to we mindset with commitments the system. growth development In addition wealth these to by

Wendy's we business growing growth our of ahead. global remain committed We daypart, committed excited for and about to driving set pillars, building footprint. our and are breakfast are accelerating our our our the growth strategic further We more fans bringing three accelerated to to digital across strong foundation

I decision-making. and being company's comment over to organizational effort to redesign support it to moment is made allocation growth by capital walk an that redesign long-term better morning. take The the structure our this execution organizational communicated of updates, the on our streamlining to maximizing we a of efficiency GP to in want Before through turning the strategy

Following elevated our voice, an are of will in broader fully with brand see XXXX our operate to we a of inflationary that global organizational embark redesign, be versus opportunity of this approach redesign despite a growth a as we intend as model. operating unified a on relatively We change, structure and to beginning we pressures anticipate our and further. as even XXXX result accelerating XXXX the now G&A service flat

allocation to capital our over With turn walk actions. through to GP that, I'll it

Gunther Plosch

Thanks, Todd.

Todd order cash our remarks, opening million in XXXX. Board balance, recently allocation elevated of revisit had which our remained the his $XXX address to of Directors to as opportunity As at plans year-end approximately our capital mentioned in

Our true priority while business capital remains is and our will do the we to remaining first investing continue in to growth, for policy asset-light allocation our unchanged which model.

Second, we are committed dividend. maintaining to an attractive

quarterly position the continued large supported in growth in to over investments Our momentum, by a increase business and pillars per our several the share. XXX% strong support our our years, $X.XX strategic dividend last liquidity

subject as of Directors. our full-year free other share and reach by the Board our per anticipate moving strong We to cash to strong expect discretion the of dividends dividend growth and forward factors supported expected $X similar flow

February XXXX. will we cash $XXX today This in February approved $XXX and shares to the share previously announced Lastly, authorization authorization, to replaces of a expire excess XXXX. new repurchase utilize repurchase which set of repurchase We reduce share million expiring in was million debt.

our debentures repurchased we of first under million $XX the far so quarter Board existing Additionally, an in authorization.

our We will continue our assess policy. opportunities alignment allocation debt reduce in to to capital with

to our yet as and continue to via in powerful deliver simple, to shareholders on cash momentum accelerated, the company, We formula our business an continues returning to grow. committed we efficient are growth

things over back to With that, Kelsey. hand I will

Kelsey Freed

report answer share X our questions host Thanks, results outlook. our GP. At Please March fourth conference our and and and audited a that full-year earnings we regarding XXXX we call to day. XXXX that on that plan will quarter long-term and same note time,

Q&A into transition actions section, we announced allocation this focused morning. keep the that As please capital questions our were on

high Additionally, number only. one to analysts, the due be to of will again once we question covering everyone limiting

questions. your we With are ready to take that,

Operator

now Our first Instructions] question line is Certainly. [Operator the Oppenheimer. comes with of line Brian open. Bittner Brian, your from

Brian Bittner

Thank you. morning Good thanks and Good for the question. morning.

on So It shareholders you've the seems the capital your like last the as balance this sheet. we morning. of capital putting deleveraging you pretty towards GP strategy were it focus significant and in sounded clearly, a pivot on increase returns capital couple announced calls, allocation like to when that the from focused

So could a on looking to the still? buyback But sort so it's doing with about cash you. strategy? can how you the Are the balance so to you going Thank particularly out maybe on dividend the about dramatically? increase ASR, came the buybacks, tail that you being with balance long some talk heavy near-term Board at XXXX. And up and talk this buybacks just of

Gunther Plosch

There in there. Good a morning, questions were lot of Brian.

capital elevated cash the first now the to to $XXX point is most again, and with it have around to million. time return and shareholders. we of important our policy unchanged. allocation had Yes, is So balance decided back what put cash definitely work obviously It's this we

attractive priority important to most second was issue dividends. always Our

on the to cash a So we future have in we side. have, is we the little the in action felt we balance right cash the flow visibility high the be growth, but attractive it have more growth, bit visibility actually strong high high dividend with

share are to repurchases which balancing is our reduction. that with returning through and debt priority, to cash We third shareholders

out it We're repurchase On the out side, goes to going comment for right, annually. share million, four the years. not phase $XXX that to is how going you're

for expect our us on about at year to discretion. going to least going million our manage that rest dilution. The we're to $XX can spend a be You is

We the couple over will years. see next how things develop of

Operator

line Our next open. question comes is Charles Andrew Cowen. of now Andrew, with line your from the

Andrew Charles

and typically lines strong for the share results given your just But if to with I Todd, you QSR released I XQ comps, capital related. help earnings questions sales contextualize helpful. Thanks. was that allocation U.S. do would to dollar Great. think calls I your of want be you could you wondering know XQ relative be that category

dollars priorities capital ability GP. priorities, flat And and your your keeping ability confidence those from really growth your just though, limiting – those speak just and flat. other while XXXX in keeping and was dollars your allocation on just G&A, reach meeting reducing or My your achieve to for while you question, to could XXXX

Todd Penegor

front, have the the all on share of little to quarter Andrew, too early sales fourth data. I'm a

quarter, at on third momentum a of when as But earnings our to calendar. share my and mean with March we'll sense into release. we performed in that I we performance both share we get had had international, you competitors quarter our the X and within relative in fourth look very together So is a lot two-year we momentum space. that the a U.S. basis we strong step-up had on full the the well our

segment. the business at basket on French Toast of deal that in numbers Sticks, As remarks, prepared promotion then strong rest that of continued balanced year nice QSR day from the job place. all breakfast continues with look done momentum Crave very the balancing those and well to Italian and success $X our the ago there, out have side, the did a with lapping mozz Cheeseburger value We Bag of be, And the $X our the to be to continued and said trial. Bacon we're drive to calendar, place a performing to Made placed the put GP? within calendar Frosty Pretzel you I behind and the breakfast Biggie on that on iconic Peppermint –

Gunther Plosch

Yes.

keep So confident on are inflationary that versus yes, XXXX both your I mean question, in can G&A some there flat XXXX be G&A relatively and will we XXXX. pressures. we

global As pressures of as ended the think next you decision-making, know, XXXX with streamline company. flat sales. our the will it, efficient result actions to X.X% an enough And inflationary about to in G&A our I years. are relatively tailwinds our two over a I give of and We keep we us G&A redesign offset with

Operator

Dennis now question the of your next with Our line Geiger is from Dennis, UBS. line open. comes

Dennis Geiger

Great. Thank you.

some decision-making and going more that you. you to appreciate bit how that and bit wondering it. detail that Thank just speak relates sort but if kind from enhances the be able as to maybe on streamlining guys. restructuring you'd one it a to strays capital little of additional organizational the a allocation, potentially of to any forward, I'd spoke Another growth of benefits

Todd Penegor

focus all starting strong Great actually have think unit where to about evolve got like activation I really sure on how we'll think of focused to global was in finish our around in you digital plans do place we feel growth? strength, around the our driving from a we as really that structure, XXXX I more make go a news momentum is Are year. the guidance. do. X leveraging mindset? lot we org we're global that driving more in a technology But March How our We do right? we wanted longer-term share position on as the it with We and of business discussion we're a to into get of global we guidance

that ultimately, course without everything of restaurant the the and will us and out layers operational on also can speed we But of to on it is and bar some past too. take you chase us decision-making, as be raises around allows business. just And continue Continue drive organization, focus, year. way excellence it really will the will front, G&A it drive where And things drive development it drive helps we reallocated as efficiency, the the the productivity. the this level, do GP breakfast of any more demand to focused, during new commented, it the at digital build distractions restaurant traditional of we our driving resources

So it's as simple that. as

Operator

from Chris, Carril your RBC question of comes Markets. Chris next line the now Our line with is Capital open.

Christopher Carril

bit, targets? further Thanks Thanks Todd, for great. thinking you other you result org you think would the so the or And to question. I on outlook? then touched be in expand on just Hi. any on development much. would changes more expect that latest the any but bit development Could details long-term redesign a little pacing now, the your strategy, a to

Todd Penegor

Yes.

the get guidance until out on unfortunately, to development On outlook, there we long-term X. wait have put March we'll

through we'll of in X. that guidance for on talk our So context the March XXXX

new We flavor on places in I that targets of little will with effort and as some we the org a did date excited the the with which to long-term course give stands about. learn an the We've year. redesign, dedicated of also. that and cards. frosty our drive development did traditional units energy really really on Kitchens. at of next-gen What think you But development make U.S. plan, global during focus things to to looked lot to do X.X hamburger international is time we about We REEF we get around test as a more a this design, most got plan update we our we're want sure our drive

Operator

Jeffrey, next Our now from with line is the question of comes line Bernstein your Jeffrey Barclays. open.

Jeffrey Bernstein

very you much. Thank Great.

this in that environment in intimately you'll perhaps as on to could the structure. in org or you're similarly in over day-to-day the there. expected layer the this can few that Todd, if you management presume whole means expect up terms be flat years. be following But more redesign, you. next share of of Just encouraging structure G&A any focus you or perspective I'm terms I presumably a primary in removing initiatives changes what as from wondering streamline global just Thank of we involved any color the

Todd Penegor

question, Jeff. Great

two decision-making. table I U.S., international. a lot of talking I lot will U.S. me the we that of years, of mindset, it of a can we've a table speed we senior to lot international. think it one and focus lot make the so accelerate that senior do closer we that that been in leadership both it we've driving to we the business had growth to and message team, mindset, team, and couple make And key served couple us do presidents And a unit focused strategic behind more operating global their to to As organization, international, were mean we the the We'll autonomy about the go a a the our a put around continue a faster sit and as around last it marketing to will I help in pillars seen effective, we've years. results business. very had business. well. that on last drive operations U.S. will global us lot that of the But as success entire And sit got the on having need leadership success with got sure as a have

benefit from So of of that. see I all a lot

Operator

Danilo from now is Bernstein. the open. Gargiulo your with Danilo, line Next line of question comes

Danilo Gargiulo

of you to quarter. of comps seeing announcement. just relatively on be organization The your announce seemed you're if when decision the wondering last to can your kind what elevated. propelling I'm still timing Essentially, comment was wondering more compared the relevant Hi, good today are see morning. the outperformance. continue continuing I G&A But was redesign to to be sales to

Todd Penegor

function we're just how moving business a looking managing think of forward. at I our

a G&A good fresh team. have some would look embark on we personally to a As we here operate but as it on And the thought I place the alluded we we as be as in start design fresh helps GP our year can work that enable hold having of leadership leadership XXXX, XXXX in how to that to, relatively certainly XXXX, the senior sure just make and flat in work.

XXXX flow out to G&A X. as to our reestablish we look March our that So work as what actually that done that out, through look outlook when we what on work part longer-term able the org we'll how design come share our be of all have does layers to guidance like, with does next you like, and of

Operator

line with next line question Our of open. Stifel. Chris comes Chris, from now the is O’Cull your

Chris O’Cull

repurchase companies I question past more dividends Could how to looks several allocation. The is capital a follow-up. My change guess, a the regarding And like stock capital had talk the you pay little about company I this average, Thanks. going the forward. going use it's and to then on to bit years came that over decision?

Todd Penegor

sitting at Good options line And obviously discussed is an what day, the Number use think to morning, terms an with we the Chris. dialogue allocation active cash return point the of to currently with have policy. shareholders. in on end of of There's dividend. excess we that I we it's the our Yes, we that decided different Board do attractive are what of two capital is in Directors.

and generation, capital we is high markets cash to growth, the are have stance high in the very, several more And we the side calculation, do high things. confidence returns we a to dividend signal at to made next over in that's if financial of flow the taking years of you're the all confidence we than Again, on combined, adjustment you obviously, dividend basically that Now billion. that very want little attractive. $X on getting the bit

flow stay is to very strong. that signaling we So are going our generation cash

Operator

comes JPMorgan. next The now question John, open. from of Ivankoe the with John your line line is

John Ivankoe

if you. if was can was I mean, are on in you this. I thank you'll for about if that will quarter. you be I'll is cheeky average comp, the much address consumers might How pricing seeing in different The mean, instructive think if I you anything you're ticket pricing? that see talk be and of think even spoken you about if of if for if so can, much. Hi, that of kind fourth ways the brand, price? much to more your willing where commodity that. a guess can many think there's fourth you movements you're question And with take Thanks little how talk address soft the specifically? really what commodities seeing there's pricing behave so update in that inflation have we've data you been last to I can the quarter the relative a kind there since you in we And of consider XXXX, different XXXX,

Todd Penegor

to more see we're a right into be good save well. is of customer we We'll release you the a address consumer. you to continue in won't to the on lot a looking And down QSR start lot when on two-year business. about one- very we I results category. strapped. at price, seeing we think performing for are those a today. on we're John, competing health There place our as that's the detail of Hey, trade How mean our we're a basis, what restaurant questions consumer segment and our discussion where mix. where X in continues the continued and and from there, in – of of place little counts, are be. and I see March to We're the that

we're with happy So that.

Gunther Plosch

Yes.

quarter. we're to all Just that basis than on are And a that two-year segments. more done four, And on have We told right? in in XX% growth going John, the quarter double-digit with about grow we two-year across fourth this, add exceeded actually that really we on you right? quarter to a basis happy three

Operator

your question from line line next comes now Guggenheim. Gregory the Francfort of Gregory, is open. Our with

Gregory Francfort

was the U. should on I outsized just looks the I Hey, one closures. mean, had thanks anything growth closures read into basis? – in Or with that terms It is unit to just during question. the of something while quarter. a quarter net had think for a bit there first the the a we was on in on S. specific go-forward of I side. guys like the it you quarter

and I ask Thanks. out Just question. figure the

Todd Penegor

happy for units, ended you our this Yes, X% X.X% Good range. Greg. year morning, up be to told going we we with performance to it’s and outlook right? the on We EBITDA in that are

U. we closures between of ourselves Secondly, that is I S., XX% in would growth we have in international. year, We the XX% kind this you, say worked will the as year. through split told the elevated

in the from XXX which That’s this year. us. the past versus in between what We told definitely XXX, and have is you past happens elevated seen basically what

comment you As has and to on on not with to do of a us. it rates adventure lot We a up that basis. going for remember, closure cleaning REEF do beginning March. go-forward might that I’m of

Operator

Our comes from is Palmer of the David open. next Evercore David, your line with ISI. line now question

David Palmer

if back weighed using I’m then is options? stock sort you cash wondering against curious growth business-related those cash incentivizing Thanks. you’ve you weighed this, if perhaps on used of that basis, an or Thanks. perhaps target or for unit what spending, leverage now? other but And how even buying debt I’m is mentioned how know just I expense your reduction don’t

Todd Penegor

Good issued ratio view, morning, we really point leverage From David. haven’t target. a of a

structure, as know, we really securitized is at debt that Xx results. gone nicely levered. third end full the of the final We’ve the were debt you levered. do to we From have numbers once know, audited quarter, issue As a we the you about

is of probably need The kind we time in XXXX. refinance first or XXXX to into get mode

So about some we to think time have it.

line are down in seen it. with definitely You’ve allocation debts we Optimistically, our taking capital right? policy,

quarter the million our already debentures. in back bought have $XX We of

for due XXXX. As repayment December in of know, they you are

we on million go. whether And repurchases basis. demonstrating doing between reduce balancing are we the the that are because debt share and to go-forward we’ll It’s $XX a is think see act debt, I can we there So both.

Operator

Gonzalez comes question of from the Eric, next open. KeyBanc. Our is with line your Eric now line

Eric Gonzalez

thanks the good like and ask what can. question if sales for to Hey, I about I’d morning.

biggest a of on didn’t messaging, media but air brand attention One or value. bit fourth also much seem from your bit it It's even little of like And your been quite of benefited lately. perhaps mostly the impact level of have higher from competitors a has quarter results, does it been an strong on the category.

if you it you mean on affected can heightened maybe the in competitive and So comment quarter business how XXXX? forward your think for going messaging the trend fourth can in what the

Todd Penegor

calendar. Yes, do low a cycle I of bring course great job of to folks purchase side to When tasting month, in the folks to and to continue on of that’s the you a side in through up continue trade balanced affordable to The the do Bag for a to you menu their food, great great on offer. the about the allow what bring on can having continues the we Biggie high think of menu. we think we $X Made very continue Crave to buy news and

always a is Wendy’s. rest actually seen. halo out bringing folks a the a into than but Frosty restaurant of we’ve lot of drives to is something There things iconic Frosty that activity, on the our of air, no Peppermint And really brand, lot different like great

air moment. we the as strong on the at We’ve year. messaging start going out on there got We’re actively

fourth perspective moving well GP positioned to continue really from have strong in was continue like place So the the that in we we’re But momentum compete, plans feel the win as positioned where we well our we of quarter. that really to on we’re feel forward, to just commented the category. to both with

Operator

Our next Slagle Alex, comes your now Alex line the open. line from of is question with Jefferies.

Alexander Slagle

Hey, morning. Good thanks.

digital the looking for timing, you back sure then and of if redesign, peak you’re cost, something the more efficient that could reviewing a can now the color what plans, cresting on where the reflect realization been with continually on on comfort you the deliver contain I’m on capabilities here? path. that and just building stand the investments sort just teams you on org so the there’s growth to led and there was any additional of you’ve up confidence Just the

Todd Penegor

a the the we as back that work said Yes, to to had were to we can to our senior on organizational little next so plans – one earlier, said get to the to of days. redesign we look that structural make out, lock timing bit can we changes over make at XX continue do I the that embarking the we was some down sure XX, first

the share we’re committed that So can the our better longer even thinking we lot XXXX across we our all think can that into traditional net kind great on can marketing reallocate we think part unit of flat relatively of leverage G&A of as factored our outlook to a range globe. right thinking in got But and across XXXX, of we’ve have We lot development globe. our of those resources guidance that to holding targets. absolutely focus the We ensure XXXX. a

it. date, which even a had I focused more be can to to we continue mindset, but with on can think we drive clearly, digital And we’ve global

So of those a off new to strong all very ourselves a up to of growth. lot I to of a us think build things business gear take foundation set momentum a that of and whole has

Operator

of the Joshua line with is next Stephens. comes question Joshua, now Long from open. line Our your

Joshua Long

on balance forward? taking Obviously, think we curious the of the cash new your maybe you historical how buyback for just the implications to context like can going plan, your philosophically, that for the amount Thanks and the the holistically as carrying questions. cash I capital the about through about was within work Great. carry just share periods? think dividends. But just you of you would balance curious versus or

Gunther Plosch

Right. Good morning, Josh.

point the balance view. you very As several elevated we obviously, cash quarters, know, from of are a last

this this As up that to reduced, we down. now I million. will balance that Obviously, a is said work time remarks, the taking to going year with with little it ended about kind get take $XXX in the prepared cash of actions we are

million elevated little know, we that? business from conveniently a is that and over kind of cash. at Definitely uncertainty heading a of you We’re $XXX couple very we’ll As Why run stay believe volatility can the next bit about our into of months. view. macroeconomic point of

balances definitely on appropriate. we to be little more a So prudent believe cash is bit

Operator

Our Silberman line open. is Suisse. with of now next the Lauren, line comes from Lauren question your Credit

Lauren Silberman

My back Thank projects outsourcing Are going question the you much. other time. flat. be Thank keeping in? of considering more realized restructuring pull or things headcount? Are you like Are G&A organizational efficiencies the Thanks there to investments on very through for technology? any the might you. primarily you is

Todd Penegor

lot those work to do Lauren, last we would the we several and in G&A we’re next we’re on years the at the some on few And ran of where Yes, into placing had resources. as about place put relooking investment cycle, org But of the redesign. years. posture this for contemplated that an we thinking we’re investments a some economic of of

S. moving We’re headcount with team with a the in U. on on. this some were looking and senior morning at of the changes the few side announced existing light folks that org the of

All yet to is of that come.

driving G&A they sure get do to work I we unit bar So driving flat that those to do do new the say most importantly, most and digital continuing relatively focused and really savings, the our they’re they how to so we as where make the momentum stick our breakfast. we sure our hold got on excellence resources of next are matter to a now But structural, development, operational us define on we make lot of demand, in the how years. continue raising traditional couple got in to

Operator

the from of Our line Peter now comes Peter, BTIG. open. next is Saleh with your question line

Peter Saleh

question. the taking for Thanks Thanks. Great.

I a want clarification. Just two ones. quick

any Just is that there any of just a on and on well? forward guidance and XXXX, flat for go-forward then XXXX we CapEx? out there to – to CapEx in are shifting should any the into G&A be G&A that on XXXX? CapEx dollars is as want consistent basis clarify be And going relatively Thanks. in expenses CapEx, expecting color is Or XXXX

Gunther Plosch

Good morning.

in at $XXX finished as you we G&A know, So XXXX million.

relatively saying are We flat, flat.

So saying we’re flat. not

I clarification there color little a have. I’m on On it. inflation you capital, So is bit one ready there’s of not going be yet any the give to to

flow yet As the done noticed, this not for actually you with even year. have we cash

So a beginning that bit more of develops. that March, color and one to purchase and give you number we’ll we’ll settle little needs that how

Operator

your of with now the Next line open. Truist. Jake line question Jake, Bartlett comes is from

Jake Bartlett

for I Thanks have questions. question. And one hope the I Great. which follow-ups, two taking equal just

year? The fourth with many the first expect stand REEF in for how is, could or in on XXXX instance update you you wondering us the closures? many just you closed give how quarter the I’m where next to close maybe and an

on had I payout. then dividend the a And question

as to So over looks calculate, I about payout. XXX% be it

comment think, GP, I the consistent that is be this made you going to a given.

as But I obviously double you calculating that grow but things that talked here. I’m just had could mean payout comment would you’re it from So if going the to think you of previously on kind targeted about? what

Gunther Plosch

Good morning.

Again, U.S. Active]. UK, So and Canada as on roughly your year across REEF units about REEF with [Life the partnership XX the the and is finished equally kind the said, between the questions, globe of we split we

You develops more our March the at how we unit will hear beginning do guidance. that when of

have is also note, the it’s that again, Obviously, again, in as issue the will sure dividends expect can for And increase. this XX%. dividend absolutely all payout clearly regular well dividend what it’s dividend, special the elevated not and of $X. exact north I paid of coming declare out a year. years. to make also Directors. that you going subject Board a to obviously that guidance expect of annualize discretion of to dividends, And you when is will ratios similar that be we’re the can want next that also you, we And you to terms people In our understand

Operator

the question is Wedbush Setyan line from with comes open. your next Nick, Securities. Nick of now line Our

Nick Setyan

ex Thank tail guess, Is you. the the the years Obviously, be next I it timing was or four long just how then about balanced? UK? given thinking the buyback unit through the you are going the what on level margin And relatively also to so? XXXX, across,

Gunther Plosch

Nick. morning, Good

So The It right. years. authorization yes, you’re a for us little bit gives is flexibility. four

can the year the in million us What what to we then spend our you I company. terms the sense manage $XX at is is expect terms simply I discretionary of is call to a the in rest, the repurchases would repurchases. function timing fair share manage of a said, us share which As make be minimum, value just to when for on to how going outlook of the it dilution makes

fully that are those pace sequence to repurchase programs. going decision going make together decide with to and share we So I on quarterly a understand. basis Board didn’t we’re the and how

second that you can part? So repeat one,

Kelsey Freed

right. All

the to I next question. can think move we

Operator

Certainly.

line comes Northcoast question next Sanderson from Jim now your is Research. line open. of with Jim, Our the

James Sanderson

question. the balance follow-up for the issue. I Thanks to on cash wanted

million has freeing going that narrow $XXX cash improve level a more or the given discretionary about share for spend the And G&A stronger cash lower sales, changed? start potentially up shouldn’t repurchases? forward minimum flow to mentioned that and necessary. You How

Gunther Plosch

you’re Jim, right. not wrong, Yes,

basically and more to want comes what, in prudent definitely maybe you be bit between and obviously famous right. is back If and $XXX option step company at relief you know, you we’re Remember, for realized world back, happened. do million we manage volatility a If pre-COVID, manage sheet moving manage to absolutely $XXX target an living cash would relief, package around to the to try and something if volatile pre-COVID, down, we’re you capital to around go $XXX through we and million COVID the million we to what little in franchisees a we you’re the $XXX comfortably million. need and say, had balance working

bit I more little actions. there for is means allocation think available cash clearly a capital

Operator

from comes line Jared the of question with Goldman line Jared, now is final Our Garber open. Sachs. your

Jared Garber

squeezing and question the in. for Thanks me Great.

a dividend. quarter wanted first to special there just sense more maybe around the to doing fourth increase the how items the to but Just labor? on a it, lower follow-up versus margins. can helpful. the incremental came XXX% And get then so Thanks Maybe in here? a Was better of quarter frame any and the little mentioned special? doing company-restaurant it beef a much. of where a decision maybe on you Was there be you kind dividend a You costs, you the a discussion at favorability would line in quarter? quick help bit And saw just color on the

Todd Penegor

Yes. morning, Good Jared.

Board So discussions dividend to working the versus on repurchases. into level, don’t special share of regular dividend get the want I versus details

a very action attractive, billion the making collectively with think increasing do and think, dividend XXX% of capital basically I famous this $X.X share allocation to Board, the I regular landed repurchases. we on dividend action the and

I I positive. got around don’t we outcome is to So how want into the details But think all get there. yes, the the discussions

restaurant happy. the margin, really On

in are numbers, year. prior flat the we landing As you seen have consolidated on

by actually you at bit, versus restaurants company If XX.X% were they points. peel year’s quarter and U. prior a this S. XX basis little back about actually so the landed up favorable, actually

So that well. went

had we of terms pressures March. all labor, the give we’ll analyzed quarter. might XX.X%, pre-COVID So really results pricing that are that in really we I More our what in in starting fully U. mix, despite that in you and remind margin fourth relatively are levels. out to detail our happens XXXX, we elevated was S. of margin detail still tells approach you of that truly beginning when inflationary to company-restaurant was

Operator

for call. again That everyone, morning. question to call participating Have March. We you, Todd this our in Jared. speaking you last great Thank with forward was GP, a and Thank and of thank you, on look you, the our day.

now may You disconnect.

The Wendy's Company (WEN) 13 Jan 222022 Q4 Earnings call transcript