Exhibit 99.1
2009 Analyst and Investor Presentation
Overview
QSR Industry Overview
2009 Key Goals
Wendy’s®Brand
Arby’s®Brand
Wendy’s/Arby’s Group Summary
AGENDA
Forward-Looking Statements
This presentation, and certain information that management may discuss in
connection with this presentation, may contain statements that are not historical
facts, including, importantly, 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 our 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 most recent earnings press release and in the “Special Note Regarding
Forward-Looking Statements and Projections” and “Risk Factors” sections of our
most recent Form 10-K and subsequent Form 10-Q’s.
3rd Largest Restaurant Company in the U.S.
10,000 Restaurants
$12 Billion in 2007 System-Wide Sales
Strong Consumer Brands
Commitment to quality and
operational excellence
Financial Opportunity
Significantly enhance Wendy’s restaurant margins
Achieve G&A synergies and efficiencies
Drive revenue growth and positive cash flow
Why Invest in WEN?
Our Vision: To continuously grow stakeholder value by leveraging
the strengths of vibrant, independent restaurant brands.
Third largest quick-service hamburger chain in U.S.
with 6,625 system-wide restaurants as of Q3 2008
Approximately $9 billion in system-wide sales
79% franchised and 21% company-owned
Generated U.S. average unit volumes in 2007
Company units: $1.4 million
Franchised units: $1.3 million
Quality leader among the “Big Three” hamburger
chains using the freshest ingredients, including
“Always Fresh, Never Frozen” beef
In 2007, the Zagat Survey awarded Wendy’s the
“Best Burger” and #1 in food quality among all
QSR ‘megachains’
Wendy’s: It’s waaaay better than fast food
Second largest quick-service sandwich
chain in U.S. with 3,735 system-wide
restaurants as of Q3 2008
Approximately $3 billion in system-wide sales
69% franchised and 31% company-operated
Generated U.S. average unit volumes in
2007
Company units: $1.0 million
Franchised units: $0.9 million
Industry leader specializing in signature
roast beef sandwiches and Market Fresh®
premium sandwiches, toasted subs, wraps
and salads
I’m thinking Arby’s
Wendy’s and Arby’s Worldwide*
Latin America/Caribbean
14 countries, 16 franchisees
Canada
United States
Wendy’s 6,288 337 6,625
Arby’s 3,726 9 3,735
TOTAL 10,014 346 10,360
North America
International
Total Units
375 Wendy’s
110 Arby’s
5,913 Wendy’s
3,616 Arby’s
170 Wendy’s
Asia/Pacific
6 countries, 6 franchisees
167 Wendy’s
Europe/Middle East
3 countries, 2 franchisees
9 Arby’s
* As of Q3 2008
New Leadership Team
WENDY’S BRAND
Roland Smith, CEO
J. David Karam, President
Stephen Farrar, Chief Operating Officer
Ken Calwell, Chief Marketing Officer
ARBY’S BRAND
Thomas Garrett, President & CEO
Michael Lippert, Chief Operating Officer
Steve Davis, Chief Marketing Officer
WENDY’S / ARBY’S GROUP, INC.
Roland Smith, President & CEO Stephen Hare, Chief Financial Officer
Sharron Barton, Chief Administrative Officer Nils Okeson, General Counsel
John Barker, Chief Communications Officer
Strong restaurant operating and merger integration experience
Overview
QSR Industry Overview
2009 Key Goals
Wendy’s Brand
Arby’s Brand
Wendy’s/Arby’s Group Summary
AGENDA
Restaurant Industry Overview
Wendy’s and Arby’s Operate in Growing Segments
*YTD thru October / **All Other includes Bakery, Asian, Coffee, Convenience, Food/Drug Stores, etc.
+2%
QSR Sales by Segment
Year-to-date through October – Data in billions
Total U.S. QSR Sales YTD 2008*
$190 billion
FLAT
+7%
+7%
FLAT
+1%
Source: NPD CREST
$48.9
$33.0
$25.6
$11.0
$10.3
$60.7
$47.9
$33.2
$24.0
$10.3
$10.4
$60.1
Hamburger
Pizza
Sandwich/Deli
Mexican
Chicken
All Other**
YTD 2008*
YTD 2007*
QSR Traffic Outpacing Midscale and Casual Dining Restaurants
Traffic % Change vs. Year Ago – Total Dayparts
Source: NPD CREST
AVG CHECK
3Q 07
2Q 08
4Q 07
1Q 08
3Q 08
QSR
Midscale
Casual Dining
$4.86
$8.44
$12.69
2%
1%
1%
-2%
1%
1%
-2%
1%
1%
0%
0%
-3%
-1%
-1%
-1%
Restaurant Industry Overview
Overview
QSR Industry Overview
2009 Key Goals
Wendy’s Brand
Arby’s Brand
Wendy’s/Arby’s Group Summary
AGENDA
2009 Key Goals
Drive positive same-store sales at both brands
New marketing programs, menu development
and improved customer experience
Significantly improve Wendy’s restaurant margins
Complete key steps in integration process
Achieve significant progress on
synergies/efficiencies
Reduce company-owned new unit expansion to
increase cash flow
Develop a long-term strategy for international growth
Significant Profit Drivers
IMPROVE WENDY’S STORE-LEVEL
OPERATIONS AND MARGINS
$100 million in
Incremental EBITDA (500 bps)
Institute ownership mentality
and pay-for-performance culture
Invigorate spirit of cooperation
with franchisees
RIGHT-SIZE COMBINED
CORPORATE STRUCTURE
3-year implementation timeline
$160 million generates 3-year annualized growth rate > 10%
$60 million
Cost Reduction
Realize corporate level
synergies
Capitalize on targeted
operational efficiencies
2008 2009 2010 2011 2011
Estimate Estimate Estimate Estimate Estimate
160-180
160-180
150-170
+500 bps
11-12%
16-17%
Wendy’s Restaurant EBITDA Margin Growth Plan
Margin Improvement Targets by Year
Wendy’s/Arby’s Group $60 Million Cost Reduction
10/01
WAG is
formed
Savings achieved
through 2008 budget
efficiencies and top-level
reductions
12/31
Wendy’s Co-Op
implementation
07/01
2008
2009
2010
2011
Shared
Service Center
operational
06/01
$20-25 million
$35-45 million
$60 million Target
Completion of IT
project rationalization
2010
Additional
Savings
Overview
QSR Industry Overview
2009 Key Goals
Wendy’s Brand
Arby’s Brand
Wendy’s/Arby’s Group Summary
AGENDA
Wendy’s Brand Overview
80% Off-Premise Customers
65% drive-thru
15% take-out
DAYPART MIX
Lunch
37.5%
Dinner
21.7%
Afternoon Snack
19.9%
Evening Snack
10.6%
Late Night
8.1%
Breakfast
2.2%
Menu features…
Hamburgers made with fresh, never frozen beef
Center-cut premium chicken sandwiches
Fresh sandwiches
Chili
Salads
Baked potatoes
Frosty®
Soft drinks
Average Check
$5.95*
Source: Company Reports / *QSR Check Average is $4.86
Wendy’s Marketing Focus
Commitment to high quality, great
tasting products
Enhance quality of key core
products
Hamburgers (buns, bacon)
French fries
Chicken
Commitment to compelling value
message
Execute disciplined testing plan
Improve advertising, signage,
menu boards
Wendy’s Operational Initiatives
Significant margin improvement
“Service Excellence”
Re-launch breakfast program
Food Cost
Wendy’s Restaurant EBITDA Margin Growth Plan
+500 bps
90-110
230-250
60-80
80-100
11-12%
16-17%
Total Labor
Repairs/
Maintenance
Other
Controllables
2008
Estimate
2011
Estimate
Margin Improvement Targets by P&L Category
Wendy’s Breakfast Plan
Significant growth opportunity for Wendy’s
22% of total QSR traffic*
4% annual growth rate over the past 6 years*
2009 Action Plan
Focus on three key markets (Pittsburgh, Kansas City,
Phoenix) with revamped menu and media
Reduce store count from 850 to 450-475
Leverage “best quality” and “fresh” products
Focus on operational execution
Improve store-level profitability
Test market expansion in late 2009 through 2010
Demonstrate attractive ROI from breakfast to the
Wendy’s system
Targeting national launch in 2011
*Source: CREST
Overview
QSR Industry Overview
2009 Key Goals
Wendy’s Brand
Arby’s Brand
Wendy’s/Arby’s Group Summary
AGENDA
Arby’s Brand Overview
70% Off-Premise Customers
60% drive-thru
10% take-out
DAYPART MIX
Dinner
33.6%
Lunch
60.1%
Evening Snack
4.7%
Breakfast
1.6%
Menu features…
Signature Roast Beef
Market Fresh Deli sandwiches and wraps
Market Fresh Salads
Toasted Subs
Hand-spun shakes
Curly fries and side-kickers
Average Check
$7.50*
Source: Company Reports / *QSR Check Average is $4.86
Arby’s Key Marketing Focus
Grow visit frequency among
core/loyal customers
Leverage equity in roast beef with
new products
Extend oven-roasting to other
proteins (chicken)
Continue to build check with
unique menu side items
Testing new value offerings and
promotions
Arby’s Operations Initiatives
Grow visit frequency with great customer service
New Hospitality Program
New Customer Service
Measurements
Overview
QSR Industry Overview
2009 Key Goals
Wendy’s Brand
Arby’s Brand
Wendy’s/Arby’s Group Summary
AGENDA
Financial Summary
Pro Forma Results 3Q YTD 2008
Revenue $2.8 billion
Adjusted EBITDA* $300.2 million
Pro Forma Leverage As of Sep. 28, 2008
Long-term Debt $1.2 billion
Debt/(Debt + Equity) 30%
NYSE: WEN As of Jan. 6, 2009
Share Price �� $4.92
Market Capitalization $2.3 billion
Shares Outstanding 470 million
Dividend Yield 1.2%
* Excludes special committee and corporate restructuring charges of $88.6 million; See reconciliation in Appendix
Financial Reporting Plans
Annual and Quarterly reporting
Consolidated results
Brand specific SSS, revenue, costs,
and restaurant operating margins
Investor conference calls
Reporting schedule
Q4 and FY08 March 5 (pro-forma financials)
Q1 May 7
Q2 Aug 4
Q3 Nov 5
3rd Largest Restaurant Company in the U.S.
10,000 Restaurants
$12 Billion in 2007 System-Wide Sales
Strong Consumer Brands
Commitment to quality and
operational excellence
Financial Opportunity
Significantly enhance Wendy’s restaurant margins
Achieve G&A synergies and efficiencies
Drive revenue growth and positive cash flow
Why Invest in WEN?
APPENDIX
Investor Information
NYSE: WEN
www.wendysarbys.com
Investor Contacts
John Barker, Chief Communications Officer
614.764.3044 or john.barker@wendysarbys.com
Kay Sharpton, VP Investor Relations and Strategic Planning
678.514.5292 or kay.sharpton@wendysarbys.com
Marsha Gordon, Manager Shareholder Relations and Enterprise Disclosure
614.764.3019 or marsha.gordon@wendysarbys.com
Kim Green, Manager Communications Analysis & Research
614.764.6796 or kim.green@wendysarbys.com
EBITDA and Adjusted EBITDA Reconciliation
(In thousands)
Pro Forma results
3Q YTD 2008
Operating profit
$58,062
Plus: depreciation and amortization
154,556
EBITDA
212,618
Depreciation and amortization
(154,556)
Interest expense
(69,910)
Investment loss, net
(76,497)
Other expense,net
(6,101)
Consolidated loss from continuing operations before
income tax benefit and minority interests
(94,446)
Benefit from income taxes
4,157
Minority interests in income of consolidated subsidiaries
(340)
Loss from continuing operations
Adjusted EBITDA
$300,184
Facilities relocation and corporate restructuring
(3,335)
Wendy's special committee costs
(84,231)
EBITDA
$212,618
Calculation of EBITDA and a reconciliation of EBITDA to loss from
continuing operations
Reconciliation of Adjusted EBITDA to EBITDA