first quarter 2020 conference call · in addition, this presentation and certain information...

First Quarter 2020Conference Call

May 6, 2020

© Quality Is Our Recipe, LLC

Greg LemenchickSenior Director – Investor Relations & Corporate FP&A


Forward-Looking Statements and

Non-GAAP Financial Measures

This presentation, and certain information that management may discuss in connection with this presentation, contains certain statements that are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Reform Act”). For all such 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 include, but are not limited to, those identified under the caption “Forward-Looking Statements” in our release issued on May 6, 2020 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 (i.e. adjusted revenue, adjusted EBITDA, adjusted earnings per share, free cash flow and systemwide sales). These non-GAAP financial measures exclude certain expenses and benefits. Reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures are provided in the Appendix to this presentation.

THE WENDY'S COMPANY | 3


AgendaFinancial Results

COVID-19 Update

IR Calendar

Q&A

Todd PenegorPresident & Chief Executive Officer



Business Update Successful Breakfast Launch April Sales Trends Improving Significant Digital Sales Growth Supporting Employees, Customers,

and Franchisees Strong Liquidity Position Announced Quarterly Dividend of 5

cents Committed to Long Term Growth

Initiatives

Gunther PloschChief Financial Officer


First Quarter Financial Results $ Mils (except per share amounts)(Unaudited)


2020 2019 B/(W)

Global System SRS (0.2%) 1.4% 2-Year 1.2%

Adjusted Revenues1 $326.4 $328.1 (0.5%)

Company Restaurant Margin 10.1% 15.0% (490 bps)

G&A $51.6 $49.3 (4.7%)

Adjusted EBITDA1 $89.3 $101.7 (12.2%)

Adjusted EPS1 $0.09 $0.14 (35.7%)

Free Cash Flow Excl. FI Case2 $4.3 $48.0 (91.0%)1 See reconciliation of non-GAAP financial measures in the Appendix2 Excluding the approximately $24.7M payment related to the settlement of the Financial Institutions Case in Q1 2020.

Todd PenegorPresident & Chief Executive Officer



Supporting our Customers, Crew & Franchisees

SERVING OUR

COMMUNITIES

SUPPORTING OUR

EMPLOYEES

PARTNERING WITH

FRANCHISEES


U.S. Restaurant Sales Impacted by COVID-19

• April sales trends continue to improve

• April SRS of -13.8%• Digital sales have

increased to ~5.5%* of sales

• US System is ~99%* open

* Through the week ended 4/26/2020** April Week 2 had a (3%) impact and April Week 3 had a 5% benefit from the year over year Easter shift.


Successful Breakfast Launch

Drove significant awareness Extremely high customer satisfaction Sales sustaining at ~8% of total U.S.

sales Profitable daypart Franchise system very happy with

launch Breakevens reduced even further


Marketing Plans Evolving with COVID-19

THE WENDY'S COMPANY |

Digital Unlocking Greater Convenience

14


Focused on Great, Safe Experiences for Customers & Crew

Emergency Paid Sick Leave Policy

Restaurant Recognition Pay Low Employee Turnover Speed of Service

Improvements Customer Satisfaction

Improvements

© Quality Is Our Recipe, LLC THE WENDY'S COMPANY | 16

WENDY’S CREATES JOY & OPPORTUNITY THROUGH FOOD, FAMILY & COMMUNITY

A place I love to go

CLEAN & WELL MAINTAINEDUP TO DATE

EASY & CONVENIENTUPBEAT & COMFORTABLE

FOODFood I love

FRESHHONEST INGREDIENTS

CRAVEABLE TASTEMADE RIGHT

VALUEWorth what I pay

COMPETITIVE PRICEWENDY’S QUALITYGREAT EXPERIENCE

SERVICEAn experience that

brings me back

FRIENDLYACCURATE

FAST

Q U A L I T Y I S O U R R E C I P E T R E A T P E O P L E W I T H R E S P E C T D O T H E R I G H T T H I N G P R O F I T M E A N S G R O W T H G I V E S O M E T H I N G B A C K

RESTAURANTS

Gunther PloschChief Financial Officer



Significant Franchise Relief Provided

PARTNERING WITH

FRANCHISEES

Royalty DeferralsMarketing Fund DeferralsBreakfast Marketing Fund

AbatementsRent Deferrals

Extending Reimaging and New Build requirements

Interest Only Payments on Debt

THE WENDY’S COMPANY 19

Strong Liquidity Position

Cash Balance Remains Strong*~$365 million

Capital ExpendituresReductions of ~$20 million

General & Administrative Reductions of ~$10 million

*Balance as of May 3, 2020

Capital Allocation Policy Remains Unchanged

Continue to Invest in the Business for Growth

Sustain an Attractive Dividend; Payout Ratio > 50%

Flexibility to Utilize ExcessCash to Repurchase Sharesand/or Reduce Debt

1

2

3

Greg LemenchickSenior Director – Investor Relations & Corporate FP&A


Investor Relations Calendar• May 13: Canada Virtual NDR with Evercore

• May 14: Midwest Virtual NDR with Guggenheim

• May 28: Bernstein Virtual Conference

• June 17: Oppenheimer Virtual Conference

• June 23: Piper Sandler Virtual Call


Appendix

Reconciliation of Non-GAAP Financial MeasuresIn addition to the GAAP financial measures included in this presentation, the Company has presented certain non-GAAP financial measures (i.e., adjusted revenues, adjusted EBITDA, adjusted earnings per share, free cash flow and systemwide sales). These non-GAAP financial measures exclude certain expenses and benefits as detailed in the accompanying reconciliation tables.


Reconciliations of Net Income to Adjusted EBITDA and Revenues to Adjusted Revenues


In Thousands (Unaudited)

Reconciliation of Net Income and Diluted Earnings Per Share to Adjusted Income and Adjusted Earnings Per Share


In Thousands except per-share amounts (Unaudited)

Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow


In Thousands (Unaudited)

first quarter 2020 conference call · in addition, this presentation and certain information...

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