Todd Penegor President & CEO...Wendy’s was founded in 1969 by Dave Thomas in Dublin, Ohio, where...
29
Todd Penegor President & CEO
Transcript of Todd Penegor President & CEO...Wendy’s was founded in 1969 by Dave Thomas in Dublin, Ohio, where...
Todd PenegorPresident & CEO
2ACCELERATING GROWTH
Global systemwide sales growth of 5.7%
NA SRS 4.4%
Global expansion continues; opened 40 restaurants
Systemwide sales guidance for 2019 now expected to be at the high end of our range (3.0-4.0%)
Full Q3 financial results and 2019 financial outlook to be released November 6, 2019
Q3 Preliminary Sales & Unit Growth Performance
3ACCELERATING GROWTH
ACCELERATING GROWTH
FOUNDATION SET FOR SUCCESS
PLAYING A DIFFERENT
GAME
BUILDING A STRONGER WENDY’S
4ACCELERATING GROWTH
Source text can go here.
QUALITY IS OUR RECIPE
DO THE RIGHT THING
TREAT PEOPLE WITH RESPECT
PROFIT MEANS GROWTH
GIVE SOMETHING BACK
Wendy’s was founded in 1969 by Dave Thomas in Dublin, Ohio, where the Company is still headquartered today
Dave Thomas lived his life by a set of values that are still very much the foundation of the brand today:
5ACCELERATING GROWTH
Increasing Focus on ESG Topics & Reporting
SUSTAINABLE PACKAGING
ANIMAL CARE & WELFARE
FRESH, SUSTAINABLE & TRACEABLE
PEOPLE & COMMUNITY
© Quality Is Our Recipe, LLC THE WENDY'S COMPANY | 6
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
7ACCELERATING GROWTH
Solid growth in fundamentals over the last 5 years
Predictable, Sustainable N.A. SRS Growth
1.6%
3.3%
1.6%
2.0%
0.9%
2014 2015 2016 2017 2018
Driven by Investments
New Builds
Technology
Food
8ACCELERATING GROWTH
Improvements in brand health building Wendy’s differentiation in the hamburger QSR category
9ACCELERATING GROWTH
Disciplined cash flow management led to strong shareholder returns
Capital Structure Supports Growth
HighlyFranchised
Capital Lite
Model
SignificantCash
Returns
~$2.6B in Cash Returned
Since 2013
StrongShareholder
Returns
<4%* Interest Rate
~95% Franchised
Model
~200% Decrease
in CAPEX
84th
Percentile vs. Midcap
400**
*Reflects securitized debt only**Reflects Wendy’s performance vs. the S&P Midcap 400 over the previous 5 years ending 12/30/18
PLAYING A DIFFERENT GAME TOUNLOCK ACCELERATED GROWTH
11ACCELERATING GROWTH
Kurt KanePresident, U.S. and
Chief Commercial Officer
Abigail PringlePresident, International and Chief Development Officer
Liliana EspositoChief Communications
Officer
Coley O’BrienChief People
Officer
EJ WunschChief Legal Officer and
Secretary
Laura TitasChief Digital Experience
Officer
Gunther PloschChief Financial
Officer
EXPERIENCED LEADERS FOCUSED ON EXECUTION
12ACCELERATING GROWTH
New Organizational Structure to Drive Growth
NIMBLE | SPEED TO MARKET | CROSS-FUNCTIONAL | TEAMWORK | EFFICIENT
13ACCELERATING GROWTH
Continue Expansion of U.S. Restaurant Footprint
Restaurant Economic Model
Accelerate U.S.Same-Restaurant Sales
1 More Visit, 1 More Dollar
Digital Acceleration
Operational ExcellenceAccelerate International
Expansion
Accelerate Global Restaurant Expansion
Comprehensive Plan to Accelerate Growth
Breakfast
14ACCELERATING GROWTH
1 More Visit, 1 More Dollar is WorkingPlatformsFan Favorites
15ACCELERATING GROWTH
Operational Excellence to Drive
Frequency
OUR PLANDrive consistencyReduce complexitySet our GM’s up for success
15ACCELERATING GROWTH
16ACCELERATING GROWTH
Accelerated growth through a targeted digital and technology strategy
Re-Defining Convenience
New Customer Loyalty Program
Driving a Seamless Experience
17ACCELERATING GROWTH
Expanding into BreakfastStrong
Customer Demand
Simple Menu to Execute
FranchiseeAlignment
Economic Model is
Key
17ACCELERATING GROWTH
18ACCELERATING GROWTH
Accelerating Global Restaurant Expansion
Restaurant Economic Model
Continue Expansion of U.S. Restaurant Footprint
Accelerate International Expansion
19ACCELERATING GROWTH
Targeted U.S. Expansion• New Restaurant Development
• Traditional Free Standing
• Non-traditional Locations
• Image Activation
• System Optimization
19ACCELERATING GROWTH
20ACCELERATING GROWTH
International Expansion Opportunity
Substantial growth opportunity
Relentless commitment to Economics
Focused and disciplined while being opportunistic
Planned expansion into Europe in the next 12-18 months
THE WENDY'S COMPANY | 21
Step-Changing our Growth Trajectory
Accelerated Efficient Growth Company
Capital Structure Provides Flexibility to Maximize Shareholder Returns
BUILDING A STRONGER WENDY’S
23ACCELERATING GROWTH
Growth Enablers “The How”
Effective Organizational Design
Enhanced Food Vision
Leveraging Scale
Strong Franchisee Engagement
24ACCELERATING GROWTH
Leveraging Scale to Accelerate Growth
Culinary innovation
Digital and technology Investments
Design to value to drive restaurant economic model
Supply chain that drives the lowest cost
25ACCELERATING GROWTH
WENDY’S FRANCHISEE VIDEO
FROM GOOD TO GREAT
27ACCELERATING GROWTH
Why WENDY’S Why Now
1
2
Investing in Accelerated Growth
3
Playing a Different Game
Capital Structure Provides Flexibility to Maximize Shareholder Returns
