Slides
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First Quarter 2025 Conference Call May 2, 2025
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Aaron Broholm Head of Investor Relations
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THE WENDY'S COMPANY | 3 Agenda Business Update Q1 Financial Results 2025 Financial Outlook IR Calendar Q&A
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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 2, 2025 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 and free cash flow). 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. FORWARD-LOOKING STA TEMENTS AND NON-GAAP FINANCIAL MEASURES 4
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KIRK TANNER PRESIDENT & CEO
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Opened 74 New Restaurants Globally 6 Q1 2025 HIGHLIGHTS Global Systemwide Sales Declined 1.1% and Global SRS Declined 2.1% Maintained Traffic and Dollar Share in the QSR Burger Category in the U.S. International Systemwide Sales Growth of 8.9% and SRS Growth of 2.3% Returned $173+ Million to Shareholders via Dividends & Share Repurchases
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7 DELIVERING AGAINST LONG-TERM STRATEGY DOUBLE DOWN ON FRESH, FAMOUS FOOD DELIVER AN EXCEPTIONAL CUSTOMER EXPERIENCE ACCELERATE GLOBAL UNIT GROWTH CREATING VALUE FOR FRANCHISEES AND SHAREHOLDERS
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Majority of Ingredients in U.S. and International Markets Sourced Close to Home Partnered With Girl Scouts on Successful Collaboration Featuring Thin Mint Frosty DELIVERING AGAINST LONG-TERM STRATEGY DOUBLE DOWN ON FRESH, FAMOUS FOOD 8 Launching New Ways to Frosty Platform
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DELIVERING AGAINST LONG-TERM STRATEGY DOUBLE DOWN ON FRESH, FAMOUS FOOD 9 Featuring Never Been Done Before, Famous Food and Fresh Collaborations Providing Customers With More Fresh, Famous Food at an Attractive Value
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DELIVERING AGAINST LONG-TERM STRATEGY DELIVER AN EXCEPTIONAL CUSTOMER EXPERIENCE 10 Improved Order Accuracy Through Menu Item Labels & Delivery Scales On Track To Deploy Digital Menu Boards and FreshAI to More than 500 Restaurants in 2025 Completed Rollout of New Field Organization; Initial Restaurant Assessments Underway App Enhancements Drove Loyalty Growth and Increased Customer Engagement
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DELIVERING AGAINST LONG-TERM STRATEGY ACCELERATE GLOBAL UNIT GROWTH Opened 74 New Restaurants Globally, 68 Net New Development Agreements for 25 Units in Mexico, 30 Units in Chile 11 On Track to Achieve 2025 Net Unit Growth Target of 2-3%
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At Wendy’s, our focus is on serving the BEST FOOD and creating a GREAT EXPERIENCE for our customers. 12
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KEN COOK CFO
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THE WENDY'S COMPANY | 14 $ Mils (except per share amounts) 1 See reconciliation of non-GAAP financial measures in the Appendix UPDATE 2024 2025 B/(W) Global Systemwide Sales Growth 2.6% (1.1)% 2-Yr 1.5% Global System SRS 0.9% (2.1)% 2-Yr (1.2)% US Company Restaurant Margin 15.3% 14.8% (50) bps G&A $63.8 $68.2 (6.9)% Adjusted EBITDA1 $127.8 $124.5 (2.6)% Adjusted EPS1 $0.23 $0.20 (13.0)% FIRST QUARTER FINANCIAL RESULTS
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15 FIRST QUARTER CAPEX AND FREE CASH FLOW 2024 2025 B/(W) Free Cash Flow1 $56.0M $68.0M $12.0M $6.1M Technology Initiatives $9.9M Development of Company - Operated Restaurants $5.8M Build-to-Suit Q1 CapEx and Build-to-Suit Investments 1 Beginning with the three months ended March 30, 2025, the Company modified its definition of free cash flow to reflect expe nditures related to its franchise development fund. The prior period has been revised to conform to the current year presentation. See reconciliation of non -GAAP financial measures in Appendix.
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16 Q2 Dividend $0.14/share Target payout ratio of 50-60% of adjusted earnings Anticipate returning up to $325M to shareholders in 2025 Q1 Share Repurchases 8.2M shares Anticipate repurchasing up to $25M of additional shares in 2025 FIRST QUARTER CAPIT AL ALLOCATION
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17 2025 OUTLOOK Global Systemwide Sales Growth Adjusted EBITDA Adjusted EPS Free Cash Flow Capital Expenditures (2.0%) to Flat $530M to $545M $0.92 to $0.98 Prior Definition: $250M to $270M Updated Definition: $185M to $205M 1 $100M to $110M 1 Beginning with the three months ended March 30, 2025, the Company modified its definition of free cash flow to reflect expend itures related to its franchise development fund. The prior period has been revised to conform to the current year presentation. Net Unit Growth 2% to 3%
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Aaron Broholm Head of Investor Relations
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Investor Relations Calendar May 19th: Wolfe Investor Conference (Virtual) May 29th: Bernstein Strategic Decisions Conference (NYC) June 11th: Evercore Consumer and Retail Conference (NYC)
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Q&A
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21 APPENDIX
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22 RECONCILIA TION OF NON-GAAP FINANCIAL MEASURES In 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 and free cash flow). These non-GAAP financial measures exclude certain expenses and benefits as detailed in the accompanying reconciliation tables.
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23 RECONCILIATIONS OF NET INCOME TO ADJUSTED EBITDA AND REVENUE TO ADJUSTED REVENUES
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24 RECONCILIATION OF NET INCOME AND DILUTED EARNINGS PER SHARE TO ADJUSTED INCOME AND ADJUSTED EARNINGS PER SHARE
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25 RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW