Wendy's Co - FORM 8-K - EX-99.1 - EARNINGS CONFERENCE CALL SLIDE PRESENTATION MATERIALS - August 9, 2012

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8-K - CURRENT REPORT - Wendy's Cod389964d8k.htm
Second Quarter
2012 Earnings
Conference Call
August 9, 2012
©2012 Oldemark LLC
1
Exhibit 99.1

JOHN
BARKER
CHIEF COMMUNICATIONS OFFICER
2

The Wendy’s Company
Today’s Agenda
The Wendy’s Company
Opening Comments
Emil Brolick
Financial Update
Steve Hare
CEO Overview
Emil Brolick
Q&A
3

The Wendy’s Company
Forward-Looking Statements and
Non-GAAP Financial Measures
4
The Wendy’s Company
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 August 9, 2012 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 August 9, 2012 and posted on www.aboutwendys.com.

EMIL
BROLICK
PRESIDENT & CHIEF EXECUTIVE OFFICER
5

The Wendy’s Company
Quality is our recipe.
The Wendy’s Company
6

Q2 2012 Highlights
Fifth consecutive quarter of positive systemwide SSS …
+3.2%*
Company restaurant margin improved 20 bps to 14.1%
Reaffirming 2012 Adjusted EBITDA outlook of $320 to $335 million
Image Activation restaurants continue to generate strong sales;
expansion accelerating
* North America restaurants
7

The Wendy’s Company
System Optimization
Financial Management
Restaurant Utilization
& Daypart Expansion
Global Growth
New Restaurant Development
Image / Experience Activation
North America Same-Store Sales Growth
8

The Wendy’s Company
RECIPE TO WIN
PEOPLE
PEOPLE
5-Star Athletes
5-Star Athletes
PRICE
PRICE
New QSR Quality at QSR Price
New QSR Quality at QSR Price
PRODUCT
PRODUCT
Play a different game. Superior
Play a different game. Superior
perceived quality, competitive price.
perceived quality, competitive price.
PROMOTION
PROMOTION
Strategically driven, tactically brilliant
Strategically driven, tactically brilliant
PLACE
PLACE
The complete brand experience
The complete brand experience
PERFORMANCE
PERFORMANCE
Reliable & predictable every time
Reliable & predictable every time
The Wendy’s Company
9

STEVE
HARE
CHIEF FINANCIAL OFFICER
10

Q2 2012 Financial Highlights
North America
Same-Store Sales
Company-Operated   +3.2%
Franchise                   +3.2%
Systemwide              +3.2%
Company Restaurant
Margin
Q2 2012   14.1%
Q2 2011   13.9%
+20 bps
Key Negative Margin
Variances
Restaurant Labor  (115) bps
Commodities
11
April
May
June
(70)
bps

The Wendy’s Company
Investing in Restaurant
Labor to Build the Brand
12

The Wendy’s Company
Beef: Expect Moderating Costs in Q3 and Q4
Short-Term Impact
Demand:
ground
beef
retail
demand
remains
sluggish
–
impact
of
“pink
slime”
on
demand
Drought:
Midwest
drought
will
send
cattle
to
market
sooner
than
normal:
helps
short-term
pricing
Expect Q3 and Q4 beef costs to be lower than originally anticipated,
but higher than 2011
Long-Term Impact
Drought:
long-term
supply
reduced
by
herd
liquidation
Herd-size:
USDA
reports
U.S.
beef
cow
herd
at
all-time
low.
Herd
re-building
unlikely
until
2016-17
Expect 2013 beef costs to be higher than 2012
Source: Wendy’s Quality Supply Chain Co-op
13

Wendy’s Commodities as a % of Total Food and Paper Cost
Potential Savings Opportunities
Identified to Offset Commodity Increases
Potential food and paper
cost savings identified;
working with suppliers and
supply chain Co-Op
(Wendy’s QSCC)
14
19%
18%
63%
Beef
Chicken
Other

Strategic Pricing Model Expected to
Benefit Restaurant Margin
15
Pricing
Transactions

Q2 2012 Financial Summary
($ in Millions)
Q2 2012
Q2 2011
Better/
(Worse)
Sales
566.1
$     
544.2
$     
21.9
$       
Franchise revenues
79.8
          
78.2
          
1.6
            
   Total revenues
645.9
$     
622.5
$     
23.4
$       
Adjusted EBITDA from continuing operations*
89.1
$       
89.4
$       
(0.3)
$        
16
*See reconciliation of Adjusted EBITDA from continuing operations, adjusted income from continuing operations and
adjusted earnings per share from continuing operations in the appendix.

Income from Continuing Operations and Special Items
17
($ in Thousands, except per share amounts)
After tax
Per share
After tax
Per share
Adjusted income and adjusted earnings per share from continuing operations
19,221
$     
0.05
$       
19,016
$     
0.05
$       
(Less) plus:
Loss on early extinguishment of debt
(15,621)
      
(0.04)
       
-
                
-
              
Impairment of long-lived assets
(2,018)
        
(0.01)
       
(224)
           
(0.00)
       
Costs associated with closed restaurants in other operating expense, net
(a)
(911)
           
(0.00)
       
-
                
-
              
Facilities relocation and other transition costs
(5,817)
        
(0.01)
       
-
                
-
              
Arby's indirect corporate overhead in general and administrative (G&A)
-
                
-
              
(4,243)
        
(0.01)
       
Transaction related costs
(347)
           
(0.00)
       
(3,175)
        
(0.01)
       
   Total adjustments
(24,714)
      
(0.06)
       
(7,642)
        
(0.02)
       
(Loss) income from continuing operations and earnings per share
(5,493)
$      
(0.01)
$      
11,374
$     
0.03
$       
2012
2011
Second Quarter
(a)
See reconciliation of Adjusted EBITDA from continuing operations, adjusted income from continuing
operations and adjusted earnings per share from continuing operations in the Appendix.

Cash Flow 2012 YTD
($ in Millions)
2012
Net income
9.2
$          
Adjustments
59.3
          
Net cash flow from operations
68.5
          
Capital expenditures
(84.1)
         
Restaurant acquisitions
(21.8)
         
Proceeds from sale of investment
24.4
          
Other investing activities
(0.6)
           
Net cash decrease after investing activities
(13.6)
         
Proceeds from long-term debt
619.4
        
Repayments of long-term debt
(602.8)
       
Premium payment on Senior Notes redemption
(10.1)
         
Deferred financing costs
(15.6)
         
Dividends paid
(15.6)
         
Other financing / investing activities
(1.8)
           
Net decrease in cash after financing activities
(40.1)
         
Beginning cash balance
475.2
        
Ending cash balance
435.1
$      
18

Restaurant Portfolio Update
Conducted review of Company-operated restaurant portfolio, resulting in closure of 15
underperforming restaurants
Company acquired 30 franchised restaurants in the Austin, Texas
market
19
Key strategic actions in Q2
Q2 2012
Company
Operated
Franchise
Operated
Total
System
Open at beginning of Q2
1,414
5,167
6,581
Opened
-
13
13
Closed
(19)
(28)
(47)
Acquisitions within the system
30
-
30
Dispositions within the system
-
(30)
(30)
Open at end of Q2
1,425
5,122
6,547

Q2 2012 Consolidated Debt
($ in Millions)
Senior Debt
1,361.8
$    
Capital Leases and Other Debt
32.5
           
Total Debt
1,394.3
      
Less: Cash and Cash Equivalents
435.1
         
Net Debt
959.2
$       
TTM Adjusted EBITDA*
320.9
$       
Total Debt / TTM Adjusted EBITDA*
4.3x
Net Debt / TTM Adjusted EBITDA*
3.0x
July 1, 2012
20
*See reconciliation of Adjusted EBITDA from continuing operations in the appendix of this presentation.

Refinancing to Generate Ongoing Interest Savings
New bank debt borrowing rate of 4.75% today
Redeemed $565 million of Wendy’s Restaurants, LLC
10% Senior Notes due 2016
Annual interest savings of approximately $25 million
Improves covenant flexibility, extends maturity and
increases liquidity
21
Wendy’s International, Inc. raised $1.125 billion of new secured term loans
and established $200 million of a new revolving credit facility

Reaffirming 2012 and Long-Term Outlook
2012
Long-Term, beginning 2013
22
2012 Adjusted EBITDA from continuing operations
in a range of $320 to $335 million
Average annual Adjusted EBITDA growth rate in
high-single-digit to low-double-digit  range

EMIL
BROLICK
PRESIDENT & CHIEF EXECUTIVE OFFICER
23

Confident in Our Strategies
“A Cut Above”
brand positioning
Growth platforms to build
sales and profits
Wendy’s Recipe to Win
24

25
The Wendy’s Company
System Optimization
System Optimization
Financial Management
Financial Management
Restaurant Utilization
& Daypart Expansion
Global Growth
Global Growth
New Restaurant Development
Image / Experience Activation
Image / Experience Activation
North America Same-Store Sales Growth
North America Same-Store Sales Growth

Continuing to generate
strong sales growth
The Wendy’s Company
26
10 Reimages
Operations ratings higher
than system average

The Wendy’s Company
27
Philadelphia, PA
Philadelphia, PA
July 30
July 30

Orem, UT
Orem, UT
July 16
July 16
The Wendy’s Company
28
On track for
50
Company Reimages and
17 New Image Activation Restaurants

The Wendy’s Company
29
First Franchise
Image Activation
Restaurant
Hershey, PA
July 5

2013: Tiered Design Strategy to Optimize Returns
The Wendy’s Company
Targeted
Investment*
$650 to $700K
$500K
$300K
Sales Lift
+25%
+15%
+5%
*Estimates based on Company’s current outlook; excludes maintenance cap ex and other costs
30
TIER I
TIER II
TIER III

The Wendy’s Company
31
Company
100
Reimages
20
New Restaurants
Majority Tier I
($650 to $700K)
Franchise
Expect
100
Reimages
Majority Tier I
Introduce Tier II and
Tier III Designs
Estimates based on Company’s current outlook

The Wendy’s Company
32
Image Activation Expansion
Estimates based on Company’s current outlook
Cumulative
Image Activation Cap Ex:
$440 to 500M
(2013 to 2015)
Cumulative
Image Activation Cap Ex:
$440 to 500M
(2013 to 2015)

The Wendy’s Company
System Optimization
Financial Management
Restaurant Utilization
& Daypart Expansion
Global Growth
New Restaurant Development
Image / Experience Activation
North America Same-Store Sales Growth
33

The Wendy’s Company
2012 New Restaurant Development
Company
North America
Company
North America
Franchised
North America
Franchised
North America
International
International
At least 20 new
restaurants
50 reimages
(Image Activation)
40 new restaurants
50 franchised and
JV restaurants
34
The Wendy’s Company

The Wendy’s Company
System Optimization
Financial Management
Restaurant Utilization
& Daypart Expansion
Global Growth
New Restaurant Development
Image / Experience Activation
North America Same-Store Sales Growth
35

The Wendy’s Company
36
System Optimization to Yield Multiple
Benefits; Strengthen Overall System
Strong
Franchise
Base
Long-Term
System
Needs
Optimal
System
In-market concentration
Restaurant performance
Optimal franchise mix
to maximize value
High-quality operators
Strong, more concentrated
franchise platforms
Ability to image activate
Existing
Company-
Owned
Footprint
The Wendy’s Company

The Wendy’s Company
System Optimization
Financial Management
Restaurant Utilization
& Daypart Expansion
Global Growth
New Restaurant Development
Image / Experience Activation
North America Same-Store Sales Growth
37

The Wendy’s Company
A reliable and predictable
experience every time!
38
The Wendy’s Company

The Wendy’s Company
TM
39
The Wendy’s Company

My Wendy’s: A Culture of Service
40
Months implemented
North America Company-operated restaurants
The Wendy’s Company
18+
12-17
7-11
4-6
1-3
Not Implemented
70%
69%
64%
58%
48%
49%
Pays off in Customer Loyalty
Complaints, Problems and Revisit Intent Scores

41
North America Company-operated restaurants
Customer Service Scores Improving in 2012
The Wendy’s Company

Heightened Restaurant-Level Execution Drives Sales
42
Every additional 10 points of CPR correlates to $46,000 in additional sales.
Complaint, Problem and Revisit Intent Score Improvement Correlates to Sales Growth
North America Company-operated restaurants
The Wendy’s Company

Play a Different Game
HIGH PERCEIVED
QUALITY …
CORE
DESTINATION …
ONLY AT WENDY’S
LTO …
SPECIAL TASTE
43

44

The Wendy’s Company
CREATIVE
MESSAGE
MEDIA
45

Building Equity and Relevance with a Two-Tiered
Advertising Campaign
Brand Offering
Brand Promise
Family values
Quality / Fresh
Better choices
New products
46
The Wendy’s Company

Encouraging Consumer Response to
Advertising Campaign
Overall Best QSR
154
Fresh Ingredients
168
High Quality
164
80 to 120 average range
80 to 120 average range
80 to 120 average range
120
124
112
Source: Ameritest
47

Mobile App is Increasing
Consumer Engagement
48
My
Wendy’s
App
26,000 users
since July 16
launch
Time spent on
app 3x longer
than website

Wendy’s Recognized for
Progress in Digital
49
Ranked #2 in QSR Social
Media by Nation’s
Restaurant News –
July 10, 2012
More than 100,000 twitter followers

Wendy’s Share is Underdeveloped
in Hispanic Market
50
Non-Hispanic
Hispanic
Hamburger
Hamburger
Category
Category
Source: NPD Group / CREST Hispanic Study, 2011
=  21%
= 13%
Of Traffic
Of Traffic

The Wendy’s Company
System Optimization
Financial Management
Restaurant Utilization
& Daypart Expansion
Global Growth
New Restaurant Development
Image / Experience Activation
North America Same-Store Sales Growth
51

LATE NIGHT MARKETING SUPPORT
52

LATE NIGHT BUSINESS IS GROWING
Data based on Late Night launch 5/28/12 through 8/5/12 compared to same weeks in 2011
+7%
NATIONALLY
53
53

54
Refining A.M. Access
Wendy’s remains committed to a long-term solution

Redhead Roasters™
Campaign
Launched in NYC
Redhead Roasters launched
in 185 NYC restaurants
during July
Marketing support across
non-traditional channels:
55

The Wendy’s Company
RECIPE TO WIN
PEOPLE
PEOPLE
5-Star Athletes
5-Star Athletes
PRICE
PRICE
New QSR Quality at QSR Price
New QSR Quality at QSR Price
PRODUCT
PRODUCT
Play a different game. Superior
Play a different game. Superior
perceived quality, competitive price.
perceived quality, competitive price.
PROMOTION
PROMOTION
Strategically driven, tactically brilliant
Strategically driven, tactically brilliant
PLACE
PLACE
The complete brand experience
The complete brand experience
PERFORMANCE
PERFORMANCE
Reliable & predictable every time
Reliable & predictable every time
The Wendy’s Company
56

JOHN
BARKER
CHIEF COMMUNICATIONS OFFICER
57

Q&A

The Wendy’s Company
©2012 Oldemark LLC
A CUT ABOVE
A CUT ABOVE
59

Appendix
60

(In Thousands)
(Unaudited)
2012
2011
2012
2011
Adjusted EBITDA from continuing operations
89,073
$ 
89,415
$ 
152,954
$
163,140
$
(Less) plus:
Depreciation and amortization
(35,947)
  
(29,842)
  
(68,258)
   
(60,156)
   
Impairment of long-lived assets
(3,270)
   
(365)
      
(7,781)
    
(8,262)
    
(1,477)
   
-
           
(1,477)
    
-
            
Facilities relocation and other transition costs
(9,426)
   
-
           
(14,957)
   
-
            
Transaction related costs
(562)
      
(5,039)
   
(1,174)
    
(6,923)
    
-
           
(6,735)
   
-
            
(14,623)
   
SSG purchasing cooperative expense reversal in G&A
-
           
-
           
-
            
2,275
     
Operating profit
38,391
   
47,434
   
59,307
    
75,451
    
Interest expense
(28,002)
  
(28,089)
  
(56,237)
   
(57,531)
   
Loss on early extinguishment of debt
(25,195)
  
-
           
(25,195)
   
-
            
Gain on sale of investment, net
-
           
-
           
27,407
    
-
            
Other income, net
640
       
337
       
2,164
     
590
        
(14,166)
  
19,682
   
7,446
     
18,510
    
Benefit from (provision for) income taxes
8,673
    
(8,308)
   
1,795
     
(7,432)
    
(Loss) income from continuing operations
(5,493)
   
11,374
   
9,241
     
11,078
    
Discontinued operations:
Income from discontinued operations, net of income taxes
-
           
3,672
    
-
            
2,559
     
Loss on disposal of discontinued operations, net of income tax benefit
-
           
(3,780)
   
-
            
(3,780)
    
Net loss from discontinued operations
-
           
(108)
      
-
            
(1,221)
    
Net (loss) income
(5,493)
   
11,266
   
9,241
     
9,857
     
Net income attributable to noncontrolling interests
-
           
-
           
(2,384)
    
-
            
(5,493)
$  
11,266
$ 
6,857
$    
9,857
$    
Net (loss) income attributable to
    The Wendy's Company
Arby's indirect corporate overhead in
     general and administrative (G&A)
Costs associated with closed restaurants in
     other operating expense, net
(a)
(Loss) income from continuing operations before
     income taxes and noncontrolling interests
Second Quarter
Six Months
Reconciliation of Adjusted EBITDA from Continuing Operations
to Net (Loss) Income Attributable to The Wendy’s Company
(a)
Excludes non-cash items included in impairment of long-lived assets
61

Reconciliation of Adjusted Income and Adjusted Earnings per Share from
Continuing Operations to Net (Loss) Income and Earnings per Share
Attributable to The Wendy’s Company
62
(a)
(b)
    Adjusted earnings per share amounts, for the second quarter of 2012, include the dilutive effect of stock options and restricted shares, which were excluded from the reported number of shares used to
calculate basic and diluted loss per share, as the impact would have been anti-dilutive. Included in the appendix is a reconciliation of the number of shares used to calculate adjusted earnings per share
amounts.
    Excludes non-cash items included in impairment of long-lived assets

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