Second Quarter 2019 Conference Call · This presentation also includes forward- looking guidance for certain non- GAAP financial measures including adjusted EBITDA, adjusted earnings

Second Quarter 2019Conference Call

August 7, 2019

© Quality Is Our Recipe, LLC

Greg LemenchickDirector – Investor Relations


Forward-Looking Statements and

Non-GAAP Financial Measures

This presentation, and certain information that management may discuss in connection with this presentation, contains certain statements that are not historical facts, including 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 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 release issued on August 7, 2019 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, adjusted tax rate, free cash flow and systemwide sales). 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.

THE WENDY'S COMPANY | 3


AgendaKey Initiatives

Financial Update

IR Calendar

Q&A

Todd PenegorPresident & Chief Executive Officer


Global systemwide sales growth of 3.3%

NA SRS 1.4%; 3.3% on a two-year basis

Global expansion continues; opened 28 restaurants; 71 YTD

Company restaurant margin of 16.5%

Adjusted EBITDA* growth of 8%

Adjusted EPS* growth of 29%

Year-to-Date free cash flow* generation of $125M, an increase of 6%


Q2 Highlights

* See reconciliation of non-GAAP financial measures in the Appendix.

Continue Expansion of NA Restaurant Footprint


2019: Strengthening the Foundation for Growth

Restaurant Economic Model

Accelerate North AmericaSame-Restaurant Sales

Accelerate Global Restaurant Expansion

1 More Visit, 1 More Dollar

Digital Acceleration

Operational ExcellenceStrengthen International

Foundation


One More Visit, One More Dollar Momentum

Continued Focus on Operational Excellence


THE WENDY'S COMPANY |

Accelerating our Digital Platforms

11

Delivery: met our goal to expand to 80% of the NA system by end of ‘19

Mobile Ordering: on track to be activated across the NA system by end of ’19

Scanners: on track to have these activated by the end of ‘19

THE WENDY'S COMPANY |


2019: Strengthening the Foundation for Growth


Continue Expansion of NA Restaurant Footprint

Strengthen International Foundation

Accelerate Global Restaurant Expansion

© Quality Is Our Recipe, LLC THE WENDY'S COMPANY | 13

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

Gunther PloschChief Financial Officer


Second Quarter Financial Highlights$ Mils (except per share amounts)(Unaudited)


2019 2018 B/(W)

North America System SRS 1.4% 1.9% 2-Year 3.3%

Adjusted Revenues* $348.7 $326.4 6.8%

Company Restaurant Margin 16.5% 17.4% (90) bps

G&A $50.8 $49.2 (3.3%)

Adjusted EBITDA* $117.8 $109.5 7.6%

Adjusted EPS* $0.18 $0.14 28.6%

Year-to-Date Free Cash Flow* $125.3 $117.8 6.4%* See reconciliation of non-GAAP financial measures in the Appendix.


Franchise Financial Health Update

2018 NA Franchise Economics


Sales Growth = ~2% EBITDA = ~Flat

Leverage Ratio* @ 6/30/2019: 4.7x Leverage Ratio Target: 4.5-5.5x

Wtd. Avg. Life of Debt**: 7.3 years

Flexible Capital Structure Supports Growth Initiatives

$450

$500$400

$475 $450

$150

$100

2024 2025 2026 2027 2028 2029Securitized Notes VFN (Revolver) Debentures


$100

3.573% 2018 Notes(Callable at par

March 2022)3.884%

2018 Notes(Callable at par

March 2024)

7.0% 1995 Debentures

$ Mils


June 2021)

$450M

*Net Funded Debt (excl. Capital Leases) + Fully Drawn VFN / TTM Adj. EBITDA** Weighted average life of debt reflects fixed rate securitization and debenture debt


March 2024)


September 2026)


2019 Outlook Reaffirmed

Global Systemwide Sales growth of ~3 to 4%

G&A Expense of ~$195M

Adjusted EBITDA growth of ~2.5 to 4.5%

Adjusted Tax Rate of ~22 to 23%

Adjusted Earnings Per Share growth of ~3.5 to 7.0%

CAPEX of ~$75 to $80M

Free Cash Flow of ~$230 to $240M** The Company now expects the impact of the proposed settlement of the Financial Institutions case to take place in early 2020 as opposed to late 2019.

Greg LemenchickDirector – Investor Relations


Wendy’s Investor Day 2019


Date: October 10, 2019

Location: Dublin, Ohio

Purpose: Showcase our long-term strategic vision and issue additional long-term guidance

Investor Relations Calendar (Tentative)

• August 13: BAML NDR (Boston)

• August 14: Oppenheimer NDR (NYC)

• October 10: Investor Day

• November 6: Third Quarter Earnings Release & Call


Q&A

Appendix

Reconciliation of Non-GAAP Financial MeasuresIn 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, adjusted tax rate, free cash flow and systemwide sales). These non-GAAP financial measures exclude certain expenses and benefits as detailed in the accompanying reconciliation tables.

This presentation also includes forward-looking guidance for certain non-GAAP financial measures including adjusted EBITDA, adjusted earnings per share, adjusted tax rate, free cash flow and systemwide sales. The Company excludes certain expenses and benefits from adjusted EBITDA, adjusted earnings per share, adjusted tax rate and free cash flow, such as impairment of long-lived assets, reorganization and realignment costs, system optimization (gains) losses, net, timing and resolution of certain tax matters, the impact of our advertising funds, and the legal reserve relating to the FI case. Due to the uncertainty and variability of the nature and amount of those expenses and benefits, the Company is unable without unreasonable effort to provide projections of net income, earnings per share or reported tax rate or a reconciliation of those projected measures.


Reconciliations of Net Income to Adjusted EBITDA and Revenues to Adjusted Revenues


In Thousands (Unaudited)

Reconciliation of Net Income and Diluted Earnings Per Share to Adjusted Income and Adjusted Earnings Per Share


In Thousands except per-share amounts (Unaudited)

Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow


In Thousands (Unaudited)

Second Quarter 2019 Conference Call · This presentation also includes forward- looking guidance for certain non- GAAP financial measures including adjusted EBITDA, adjusted earnings

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