Wendys Co (NASDAQ:WEN) Q2 2020 Earnings Conference Call - Final Transcript

Aug 05, 2020 • 08:30 am ET


Wendys Co (NASDAQ:WEN) Q2 2020 Earnings Conference Call - Final Transcript


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Good morning. Welcome to The Wendy's Company earnings results conference call. [Operator Instructions]

Greg Lemenchick, Senior Director, Investor Relations and Corporate FP&A, you may begin your conference.

Gregory Lemenchick

Thank you, and good morning, everyone. Today's conference call and webcast includes a PowerPoint presentation, which is available on our Investor Relations website, irwendys.com. Before we begin, please take note of the safe harbor statement that appears at the end of our earnings release. This disclosure reminds investors that certain information we may discuss today is forward-looking. Various factors could affect our results and cause those results to differ materially from the projections set forth in our forward-looking statements.

Also, some of today's comments will reference non-GAAP financial measures. Investors should refer to a reconciliation of non-GAAP financial measures to the most directly comparable GAAP measure at the end of this presentation or in our earnings release. On our conference call today are President and Chief Executive Officer, Todd Penegor; and our Chief Financial Officer, Gunther Plosch, will provide a business update and share our 2020 second quarter results. From there, we will open up the line for questions.

And with that, I will hand things over to Todd.

Todd A. Penegor

Thanks, Greg, and good morning, everyone. I'd like to open today's remarks with the Wendy's vision as it is important to remember that our goal is to become the world's most thriving and beloved restaurant brand. As we have always said, we believe that QSR is the place to be. And as we have gone through this challenging time, this has shown to be true once again. We firmly believe that scale matters and that restaurant companies that have scale will be successful. This is proving to be more important than ever. Everything we do at Wendy's is focused on bringing our vision to life as we work to build an even stronger brand. We believe that we have positioned ourselves to manage through future challenges and ultimately emerge as a stronger Wendy's brand coming out of the other side of this pandemic.

As we issue our second quarter earnings, we remain in a challenging environment. The good news for us is that our sales have accelerated each month since the low point of the pandemic at the end of March as we have been executing on the growth initiatives that we had set in place prior to the onset of COVID. A differentiator for us as a brand is the relationship that we have with our franchisees. The partnership across our system over the last several months has been nothing short of incredible. We are confident that we will emerge from this as a stronger Wendy's system. We have had to be nimble and move quickly, which we have done successfully as a Wendy's system in order to navigate these unprecedented times. We now have 98% of our restaurants open.

And our same-restaurant sales have grown to high single digits in the U.S. for the month of July on the continued strength of our