Pershing Square Activist Presentation Deck
Wendy's OpCo: Almost No Profitability
Based on the assumptions below, Wendy's OpCo is operating at a 1%
EBITDA margin, adjusted for market rents and franchise fees. Franchised
Wendy's restaurants are believed to be generating 600 bps of higher margin.
If Wendy's company-operated restaurants could increase
profitability by 400bps, EBITDA would increase by approximately $86mm
(1)
$ in millions
Wendy's OpCo 2008E P&L
OpCo Sales (1)
Reported EBITDA after G&A allocation (²)
Reported EBITDA margins (after G&A)
Less: Franchise Fee
Less: Incremental rent expense
Plus: Operational Savings
Equals: Adjusted EBITDA
Adjusted EBITDA margin
"As is"
$2,175
$185
8.5%
(87)
(76)
0
$23
1.0%
Includes sales of sandwich buns and kids meal toys to franchisees.
Assumes ~$50mm, or roughly 25% of Wendy's Consolidated 2008E G&A of $200mm is allocated to Wendy's OpCo.
19
400 bps
"Fixed"
$2,175
$185
8.5%
(87)
(76)
$86
$109
5.0%View entire presentation