abigail pringle president, international & chief development officer · 2019-10-11 ·...
TRANSCRIPT
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
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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
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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