Abigail Pringle President, International & Chief Development Officer · 2019-10-11 ·...

Abigail PringlePresident, International & Chief Development Officer

2ACCELERATING GROWTH

President, International &Chief Development Officer

3ACCELERATING GROWTH

2019 Sets the Foundation for Future Global Growth

~5,850

~$9.7-$9.8B

~950

~$1B+

Restaurant Count Systemwide SalesUS International

~6,800

~$10.8-$10.9B

*

*International data includes CanadaSystemwide Sales excludes Argentina and Venezuela due to impacts from hyper-inflationary currency. Reflects estimated 2019 full year results.

4ACCELERATING GROWTH

Global Restaurant Growth of ~3% Annually 2020-2024 Double the Expected Growth Rate of 2019

1% to 2% CAGR 10%+ CAGR

Projected Net New Restaurant Growth from 2020 to 2024, International includes Canada

ACCELERATING GLOBAL RESTAURANT EXPANSION

US Development Strategy

6ACCELERATING GROWTH

SYSTEMOPTIMIZATION

NEW RESTAURANTS

IMAGE ACTIVATION

US Development Pillars Remain a Priority

7ACCELERATING GROWTH

2015 2019

U.S.FOOTPRINT

EXPANDED BRAND ACCESS WITH NEW DEVELOPMENT PLAYBOOK, CHANGED THE TREND

2005

Net Restaurant count

US DEVELOPMENT PLAYBOOK FUELS EXPANSION & GROWTH

Smart Family of Designs

New Restaurant Economics

Trade Area Mapping

Franchise Partnership

System Optimization

Joint Capital Planning

9ACCELERATING GROWTH20-30%

Non-Traditional

20242020U.S.

FOOTPRINT

1% to 2% CAGR

More Fuel Coming In US With Breakfast

Driving Compelling Economics

Further

TRADITIONAL AND NON-TRADITIONAL DEVELOPMENT TOGETHER CAN ENABLE GROWTH TO NEW LEVEL

10ACCELERATING GROWTH

Non-Traditional engages untapped customer groups with compelling economics

CAPTIVE AUDIENCES

Military, College, Travel Centers, Retailers

BRAND EXTENSIONS

Frosty Carts, Kiosks

URBAN CENTERS

Major U.S. Cities

DARK KITCHENS

Commissary with Delivery

~1.4M U.S. Armed Forces

~18M University Students

Currently Only 1 Wendy’s for every

~135K people

Support high delivery trade areas and

under-served communities

Big Opportunityin Small Spaces

IMAGE ACTIVATION TRANFORMS OUR BRAND IDENTITY AND DRIVES SALES

12ACCELERATING GROWTH

Image Activation Remains a Focus to Drive Customer Frequency & Elevated Experience

55-60%65-70%

~100%

2019E 2020E 2021E 2022E 2023E 2024E

• Compelling economics driven by mid to high single digit sales lifts that are sustained over time, mainly coming from customer count increases.

• Elevated experience with digital integration. Critical to brand relevancy.

• Offer a variety of investment options ranging from ~$165K to ~$500K

• Continue to partner with franchisees through joint capital planning.

Global System

Sales lifts and capex reflect US performance only

Focused on strong, well capitalized operators committed to long-term growth

SYSTEM OPTIMIZATION KEY ENABLER FOR GROWTH & SYSTEM HEALTH

Expect a healthy turnover of US System annually through Franchise Flips and Transfers

Growing robust New Franchisee pipeline to support growth

>50%RESTAURANTS HAVE

CHANGED HANDSSince 2013

Brand Stewardship

Skin in the Game

Lead/Test Innovation

Sell NY, Maintain Manhattan

COMPANY OWNERSHIP REMAINS KEY STRATEGY, MAINTAINING ~5%

Build New Restaurants

Diverse Market Portfolio

15ACCELERATING GROWTH

ACCELERATING U.S. GROWTH

NEW RESTAURANT GROWTH ACCELERATING WITH TRADITIONAL AND

NON-TRADITIONAL

~100% IMAGE ACTIVATION

BY 2024

~5% COMPANY OWNERSHIP & SYSTEM

OPTMIZATION CONTINUES

ACCELERATING GLOBAL RESTAURANT EXPANSION

International Growth Strategy

ARGENTINA ARUBA BAHAMAS BRAZIL CANADA CAYMAN ISLANDS CHILE CURACAO DOMINICAN REPUBLIC ECUADOR EL SALVADORGUAM GUATEMALA HONDURAS INDIA INDONESIA JAMAICA JAPAN KAZAKHSTAN KUWAIT MEXICO NEW ZEALAND PANAMA

PHILIPPINES PUERTO RICO QATAR REPUBLIC OF GEORGIA TRINIDAD & TOBAGO UAE UZBEKISTAN VENEZUELA VIRGIN ISLANDS

COUNTRIES32~950$1B+RESTAURANTS

SALES

1ST INTERNATIONALWENDY’S in 1975

Based on full year 2019 estimates, sales exclude Argentina and Venezuela due to impacts from hyper-inflationary currency

18ACCELERATING GROWTH

International business is a prioritized portfolio of markets, current footprint has three main regions

Canada~40% of Restaurants~55% of Total Sales

AUV: ~$1.7m

*AUV is shown in USD and calculated using Actual FX rates. Sales exclude Argentina and Venezuela due to impacts from hyper-inflationary currency

Asia Pacific/Middle East ~25% of Restaurants~15% of Total Sales

AUV: ~$750K

LAC~35% of Restaurants~30% of Total Sales

AUV: ~$1.5m

19ACCELERATING GROWTH

2019 CONSECUTIVEQUARTERS of Total Sales Growth17

~7% YTD Total Sales Growth

CONSECUTIVEQUARTERS of SRS Growth22

IMAGE ACTIVATED~65%Includes Canada in New International Performance

Great International Momentum

Early Wins, Building Momentum…Fantastic Franchise Partners & Hundreds of Restaurant Commitments

NEW JAMAICA FRANCHISEE

NEW MASTER FRANCHISEE PHILIPPINES

EL SALVADORGROUNDBREAKER

GUATEMALAGROUNDBREAKER

CANADIANGROUNDBREAKERS

NEW UZBEKISTAN FRANCHISEE

NEW KAZAKHSTANFRANCHISEE*

Many More Significant Discussions Underway. Excited to Share in the Future.* Planned to Open by YE

NEW FRANCHISEEMEXICO

NEW CHILEFRANCHISEE

NEW QATARFRANCHISEE

21ACCELERATING GROWTH

Early Wins Continue with Design Innovation & Flexible SolutionsTailored to Region, Market and Economic Diversity

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22ACCELERATING GROWTH

OF THE WORLD LIVESOUTSIDE OF THE U.S.

95%

We Are Confident We Will Capitalize on International’s Substantial Growth Opportunity

2024 VISION

Confidential & Proprietary

1500+ RESTAURANTS

Calculated using constant currencySystemwide sales excludes Venezuela and Argentina

~$2B TOTAL SALES

24ACCELERATING GROWTH

2019INTERNATIONAL

TOTAL SALES

CANADALACAP/ME

~55%~30%~15%

Drivers of International Growth Over Next 5 YearsGrowing SRS and Expanding International Footprint

CANADALACAP/ME

~40%~35%~20%

High Teens

5 YearProjected CAGR

AP/ME

Low TeensLAC

Mid Single Digit

CANADA

2024INTERNATIONAL

TOTAL SALES

Calculated using constant currency, Projected for 2020-2024

~5%

25ACCELERATING GROWTH

UK to Provide Foothold for Broader EUROPEAN Expansion

PHASE 1: Plan to Launch UK in next 12-18 months• UK is big QSR burger market, >$4B*, and growing, 3.2% CAGR*

• Clear opportunity for a challenger brand. Clear consumer need we can fulfill

• Hybrid strategy of company-owned restaurants & multiple franchisees

PHASE 2: Plan to Follow with Launch of Priority Anchor markets in Europe• Focus on markets with highest potential for success

• Assessed ideal franchise models and go to market strategies

• In active discussions with potential partners

*Euromonitor, 2018-2023 Projected CAGR for UK QSR burger segment growth

26ACCELERATING GROWTH

Company Leadership in UK Demonstrates Strong Commitment. We need to lead the way on a new continent.

Attract qualified franchise partners

Achieve scale quicker

Lead innovation

Provide training restaurants

Demonstrate skin in the game

Control brand execution

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Company Leadership in UK Demonstrates Strong CommitmentReasons to Believe

Brand affinity assessment

Differentiated menu and experience

Marketing partnerships set and ready

Development partners pursuing locations

Landmark research with consumers

Supply chain strategy built

28ACCELERATING GROWTH

U.K. VIDEO

29ACCELERATING GROWTH

THE WAY WE WIN

A WINNINGCULTURE

PARTNERSHIPSSECOND TO NONE

RELENTLESSCOMMITMENT TO

GROWTH AND ECONOMICS

A RIGHT TO WINWITH CUSTOMERS

30ACCELERATING GROWTH

THE WAY WE WIN

A WINNINGCULTURE

• New Globally Connected Leadership Team

• Think Big Brand • Focused and Disciplined• Growth Mindset

31ACCELERATING GROWTH

THE WAY WE WIN

A WINNINGCULTURE

• New Globally Connected Leadership Team

• Think Big Brand• Focused and Disciplined• Growth Mindset

A RIGHT TO WINWITH CUSTOMERS

• Clear Brand Positioning• Consumer & Market Insights• Culinary Innovation• Brilliant Creative• Technology Innovation

32ACCELERATING GROWTH

THE WAY WE WIN

A WINNINGCULTURE

• New Globally Connected Leadership Team

• Think Big Brand• Focused and Disciplined• Growth Mindset

A RIGHT TO WINWITH CUSTOMERS

• Clear Brand Positioning• Consumer & Market Insights• Culinary Innovation• Brilliant Creative• Technology Innovation

PARTNERSHIPSSECOND TO NONE

• Highest standards for franchise partners

• Varying franchise models; one size does not fit all

• Leveraging Scale of Global Relationships

33ACCELERATING GROWTH

THE WAY WE WIN

A WINNINGCULTURE

• New Globally Connected Leadership Team

• Think Big Brand• Focused and Disciplined• Growth Mindset

A RIGHT TO WINWITH CUSTOMERS

• Clear Brand Positioning• Consumer & Market Insights• Culinary Innovation• Brilliant Creative• Technology Innovation

PARTNERSHIPSSECOND TO NONE

• Highest standards for franchise partners

• Varying franchise models; one size does not fit all

• Leveraging Scale of Global Relationships

COMMITMENT TOGROWTH AND

ECONOMICS

• New Market Playbook: Leverage US Discipline

• Targeted brand investments to fuel growth & returns

• Grounded in economic model

SIGNIFICANT INTERNATIONAL GROWTH

BUILDING MOMENTUM WITH MANY EARLY

WINS

BOLD VISION FOR GROWTH

AN EXCITING NEW WAY TO WIN

35ACCELERATING GROWTH

The Future Is Bright: 2020 to 2024Vision is Focused on Bold Global Growth Goals

$2 Billion Total Sales

Projected Net New Restaurant Growth from 2020 to 2024, International includes Canada

~3% CAGR Global Unit Growth

Q&A – Abigail Pringle