Financial Data and Key Metrics Changes - Global system-wide sales declined by 1.8% on a constant currency basis, driven by a 3.6% decrease in same restaurant sales in the U.S. [33][16] - Adjusted EBITDA was $146.6 million, an increase of 2.5% year-over-year, while adjusted earnings per share rose by 7.4% to $0.29 [38][18] - Free cash flow generated in the first half of the year was $109.5 million, reflecting strong cash generation capabilities [39] Business Line Data and Key Metrics Changes - The U.S. same restaurant sales declined by 3.6%, partially offset by a higher average check, while same restaurant sales at U.S. company-owned restaurants outperformed the U.S. system by almost 300 basis points, declining only 0.7% [33][34] - The international segment achieved system-wide sales growth of 8.7%, with notable increases in Japan (27%) and Mexico (16%) [35][34] Market Data and Key Metrics Changes - The company anticipates full-year global system-wide sales to decline between 3% to 5% year-over-year, reflecting a challenging competitive environment and dynamic consumer behavior [48][29] - U.S. company-operated restaurant margin is expected to be around 14%, with commodity inflation projected at approximately 4% [49] Company Strategy and Development Direction - The company is focusing on improving execution and performance while maintaining its long-term strategy, emphasizing the importance of franchisee partnerships [5][6] - Key strategic priorities include fresh food innovation, enhancing customer experience, and accelerating net unit growth, with a target of 2% to 3% net new unit growth for the year [30][27] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that the consumer and competitive environment has changed significantly, leading to a revised outlook for the year [4][29] - The company is committed to strengthening its franchisee relationships and improving operational efficiencies to drive better results [14][15] Other Important Information - The company returned over $88 million to shareholders through dividends and share repurchases in the second quarter, totaling over $262 million in the first half of the year [18][43] - The company is on track to return approximately $325 million to shareholders in 2025, an increase of $40 million compared to 2024 [43] Q&A Session Summary Question: Assessment of marketing value menu performance - Management noted that the first half of the year faced challenges due to changing consumer behavior and weather impacts, leading to a reassessment of marketing strategies for the second half [61][60] Question: Franchisee sentiment and alignment on value - Management indicated that franchisee relationships are good but can be improved, emphasizing the need for better communication and prioritization of initiatives [72][74] Question: Revisiting U.S. franchise development - Management confirmed a commitment to improving franchisee economics through new data analytics capabilities and detailed P&L discussions at the restaurant level [86][87] Question: Customer satisfaction and same-store sales growth - Management is actively tracking customer satisfaction and believes improvements will lead to increased frequency of visits, with positive trends already observed [90][91] Question: Core menu pricing strategy - Management acknowledged the need to evaluate core menu pricing and emphasized the importance of quality in conjunction with pricing strategies [96][98] Question: Changes to chicken patty and focus on chicken - Management confirmed the use of high-quality ingredients for chicken products and expressed confidence in the new chicken tenders outperforming competitors in tests [107][108]

Financial Data and Key Metrics Changes - Global same restaurant sales declined by 2.1%, leading to a 1.1% decline in global system sales [9][31] - U.S. same restaurant sales decreased by 2.8%, while system-wide sales were down by 2.6% [9][31] - International same restaurant sales grew by 2.3%, with system-wide sales growth of 8.9% [10][32] - Adjusted revenue was $423.1 million, a decrease of $6.7 million year-over-year [38] - Adjusted EBITDA was $124.5 million, down $3.3 million from the previous year [38] - Adjusted earnings per share decreased to $0.20, down $0.03 from the prior year [39] Business Line Data and Key Metrics Changes - The U.S. company-operated restaurant margin was 14.8%, a contraction of 50 basis points year-over-year [34] - Global company restaurant margin was 14.3% for the first quarter [34] - The company opened 74 new restaurants globally, with over 60% of these openings occurring internationally [24] Market Data and Key Metrics Changes - International system-wide sales grew by 8.9%, with Europe and Asia Pacific, Middle East, and Africa regions leading the growth [32][33] - Canadian business grew year-over-year, benefiting from a localized supply chain [33] Company Strategy and Development Direction - The company focuses on three strategic pillars: delivering fresh food, providing exceptional customer experience, and accelerating global net unit growth [10][11] - The company plans to launch a "100 Days of Summer" campaign to enhance customer engagement and drive traffic [15][28] - The company is investing in technology to improve customer experience and operational efficiency, including digital menu boards and FreshAI order taking [20][21] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging consumer environment, particularly for households earning below $75,000, which saw significant traffic declines [81] - The company updated its full-year outlook, expecting global system-wide sales to be flat to down 2% [28][46] - Management remains confident in the company's strategy and brand strength to deliver long-term profitable growth [27][49] Other Important Information - The company returned over $173 million to shareholders through dividends and share repurchases [10] - The company plans to return up to $325 million of cash to shareholders in 2025, an increase compared to 2024 [44] Q&A Session Summary Question: Concerns about the 2025 guidance and consumer behavior - Management acknowledged consumer pressure reflected in Q1 numbers and emphasized a balanced approach to address customer needs [56][60] Question: Insights on consumer data and key metrics - Management highlighted operational excellence and accuracy as key drivers of customer satisfaction, with early positive results from initiatives [66][67] Question: Unit development outlook and franchisee demand - Management expressed confidence in unit growth, particularly in international markets, and noted a strong pipeline for 2025 and beyond [72][73] Question: Impact of weather and consumer behavior on performance - Management noted significant weather events affected Q1 performance, with a shift in consumer behavior leading to reduced demand [78][80] Question: Advertising spend and its effect on performance - Management indicated that while advertising spend was reduced, they maintained market share and focused on enhancing customer experience [90][91] Question: Effectiveness of collaborations and promotions - Management emphasized the importance of balancing core offerings with innovative collaborations to drive traffic and customer engagement [95][103]

Financial Data and Key Metrics Changes - Global same restaurant sales declined by 2.1%, leading to a 1.1% decline in global system sales [5][26] - U.S. same restaurant sales decreased by 2.8%, while system-wide sales were down by 2.6% [5][26] - International same restaurant sales grew by 2.3%, with system-wide sales growth of 8.9% [6][27] - Adjusted EBITDA was $124.5 million, a decrease of $3.3 million year-over-year [33] - Adjusted earnings per share was $0.20, down $0.03 from the prior year [34] - Free cash flow under the new definition was $68 million, improving by $12 million compared to the prior year [35] Business Line Data and Key Metrics Changes - The U.S. company-operated restaurant margin was 14.8%, a contraction of 50 basis points year-over-year [29] - International segment showed strong performance with system-wide sales growth of 8.9% [27][28] - The company opened 74 new restaurants globally, with over 60% of openings occurring internationally [20][21] Market Data and Key Metrics Changes - The consumer environment showed a decline in confidence, impacting demand negatively in March [27][78] - Traffic from households earning below $75,000 saw a high single-digit to low double-digit decline [80] - The QSR burger traffic was down mid-single digits in the first quarter, worse than expected [86] Company Strategy and Development Direction - The company is focused on three strategic pillars: delivering fresh food, providing exceptional customer experience, and accelerating global net unit growth [6][7] - The "100 Days of Summer" campaign aims to enhance customer engagement through value offerings and core innovations [11][23] - The company plans to invest in technology to improve customer experience and operational efficiency [15][16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging consumer environment and updated the full-year outlook to reflect potential continued pressure [23][40] - The company remains committed to long-term growth despite current macroeconomic challenges [24][45] - Management expressed confidence in the brand's ability to win in the marketplace through strategic initiatives [24][56] Other Important Information - The company plans to return up to $325 million to shareholders in 2025 through dividends and share repurchases [39] - The adjusted EBITDA outlook for the full year is between $530 million and $545 million [43] - The company expects full-year global system-wide sales to range from flat to down 2% [41] Q&A Session Summary Question: Concerns about the 2025 guidance and consumer behavior - Management acknowledged the pressure on consumers and the need for a prudent approach, emphasizing confidence in upcoming initiatives like the "100 Days of Summer" campaign [52][56] Question: Insights on consumer data and key metrics - Management highlighted accuracy and hospitality as key drivers of customer satisfaction, with early results showing improvements [61][63] Question: Unit development outlook and franchisee demand - Management expressed confidence in unit growth, particularly in international markets, and noted a strong pipeline for future development [70][71] Question: Impact of advertising spend on performance - Management indicated that while advertising spend was reduced, they maintained market share and focused on enhancing customer experience to drive frequency [88] Question: Effectiveness of limited-time offers (LTOs) - Management emphasized the importance of balancing core offerings with innovative collaborations to drive traffic and customer engagement [91][95]

Core Concept - Wendy's is introducing new variations of its iconic Frosty dessert, including Frosty Swirls and Frosty Fusions, to enhance customer experience and cater to evolving consumer preferences for customization and new flavors [2][3]. Product Innovations - Frosty Swirls will be available in the Wendy's app starting April 11 and nationwide from April 15, allowing customers to choose their favorite Frosty flavor and select from three indulgent sauces [2][4]. - Frosty Fusions will launch nationwide on May 12, enabling customers to add sauces and mix-ins for a more personalized dessert experience [3][4]. - Specific flavors for Frosty Swirls include Strawberry, Caramel, and Brownie Batter, while Frosty Fusions feature combinations like Pop-Tarts Strawberry, OREO Brownie, and Caramel Crunch [6]. Marketing Strategy - The company emphasizes the Frosty as a cultural icon, having been on the menu for 55 years, and aims to attract consumers looking for new flavors and customization options [2]. - Wendy's is enhancing the in-restaurant experience with updated equipment and specially designed cups and spoons to improve the enjoyment of Frosty products [4]. Company Background - The Wendy's Company operates over 7,000 restaurants globally and is known for its commitment to fresh food and customer satisfaction [5]. - Wendy's supports social initiatives, including the Dave Thomas Foundation for Adoption, which aims to increase adoptions from the foster care system [5].