Strong Financial Performance & Growth Strategy slide image

Strong Financial Performance & Growth Strategy

COMPELLING UNIT ECONOMICS DRIVEN BY FLEXIBLE REAL ESTATE MODEL ILLUSTRATIVE NEW STORE TARGET CASH BUILD-OUT COST² No Oven No Expensive Kitchen Equipment No Grill No Vents No Fryers No Hoods No Freezers No Microwaves $260K Target Cash Build-Out Cost² (North America) LL: Tresh freshi 1 Stores range in size from fewer than 300 square feet to greater than 2,500 square feet in urban business districts, suburban settings, university campuses and retail stores Franchise partners open stores with modest cash build-out costs and generate attractive cash-on-cash returns¹ 33% of new locations opened during fiscal 2016 were opened by existing traditional franchise partners "Cash-on-Cash Returns" means estimated year two store level operating profit after royalties and advertising, but before the impact of store owner operator or manager salaries, divided by the target cash build-out costs of approximately $260,000 (in local currency). Location: Liberty Village Toronto, ON, Canada Square Footage: 425 Build-Out Cost: C$245,790 Location: Kenaston Commons Winnipeg, MB, Canada Square Footage: 1,033 Build-Out Cost: C$293,000 Location: Avery Road Columbus, OH, USA Square Footage: 1,200 Build-Out Cost: $234,000 ATTRACTIVE NEW UNIT ECONOMICS FAT Location: The Harrison Fort Wayne, IN, USA Square Footage: 1,862 Build-Out Cost: $254,000 (NORTH AMERICAN TRADITIONAL STORES ONLY) Illustrative Return on Investment: Target Cash Build-Out Cost² (incl. franchise fee³) Sales-to-Investment Ratio Cash-on-Cash Returns¹ $260,000 Greater than 2.0x In Excess of 40% 2 "Target Cash Build-Out Costs" means the estimated target investment costs for new stores across North America, including, but not limited to, initial franchise fees, kitchen equipment and small-ware, leasehold and construction costs, furniture, signage, menu boards, point of sale equipment, other technology equipment, architectural costs and other miscellaneous costs, and excluding pre-opening expenses, lease costs and working capital, in each case payable in the local currency and based in part on estimates derived from information reported to us by our franchise partners. 3 In local currency. 4 "Sales-to-Investment ratio" means year two AUV divided by the target cash build-out costs of approximately $260,000 (in local currency). CONFIDENTIAL 8
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