Trian Partners Activist Presentation Deck
Cost Reduction and Faster Growth are NOT Mutually Exclusive
At Trian's consumer investments where Nelson Peltz has served on the board, margin
improvement coincided with sales growth, often due to reduced bureaucracy, greater
accountability, and a faster moving organization
Mondelez,
International
Sysco
Wendy's
Heinz
Margin Improvement
10.6%→ 16.4% (+580bps)
(2013 to 2017e consensus)
3.7% 4.2% (+50bps)
(2015 to 2017)
13.1% → 33.5% (+2,040bps)(1)
(2011 to 2017e consensus, including
some benefit from refranchising)
17.3%→ 16.9% (-40bps) (2)
(including ~90bps of margin headwind driven by
increased emerging markets mix)
(2006 to 2012)
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Growth Profile
Category has slowed, but organic sales
growth has still outperformed packaged
food peers by ~700bps since Nelson
joined the Board in January 2014. A&C
and R&D increased as % of sales
Local case growth accelerated from
~0% in 2010-2015 to +2.6% CAGR in
2016 & 2017 (most important revenue
metric)
18 consecutive quarters of positive
"same-store-sales" (ongoing)
Same-store-sales have outperformed
MCD & BK by 280bps since 2011 in N.
America (~93% of Wendy's system)
32 consecutive quarters of positive
organic growth. A&C and R&D
increased as % of sales
9% annual EPS growth over duration of
investment
Source: SEC filings.
(1) Represents earnings before interest, taxes, depreciation & amortization ("EBITDA") margin. Margin improvement driven by both G&A reduction and the company's strategic decision to move to a higher
franchise mix. Note - 2011 is used as the base year as this is the earliest publicly available data for Wendy's operating margin excluding Arby's and Wendy's bakery operations.
(2) Represents operating margin excluding advertising spend.
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