WHO IS
THE PRESIDENT JUST COMMERCIAL
OFFICER OF WENDY'S KURT GREAT
TO HAVE YOU HERE WITH US TODAY
CONGRATULATIONS TO YOU AND THE
TEAM ON THIS RESULT OF COURSE
MORE WORK STILL TO BE DONE.
BUT WHAT HAVE BEEN SOME OF THE
KEY CATALYST. THE SALES DRIVERS
FOR THE COMPANY IN THE
1ST QUARTER AND THROUGHOUT THE
PAST YEAR, YES, YOU'RE RIGHT.
THANK YOU.
>> THE ON AND YOU KNOW IF WE
ARE OFF TO A REALLY FAST START
THIS YEAR. AND WHEN YOU LOOK AT
ALL THE DIFFERENT THINGS THAT
HAVE COME TOGETHER TO BE ABLE
TO HELP GET US OFF OF THAT FAST
START I THINK PROBABLY 2 OF THE
MOST IMPORTANT AND THEN YOU
KNOW THE CONTINUED SUCCESS AND
GROWTH OF OUR NEW BREAKFAST, A
PART WHICH WE LAUNCHED ABOUT A
YEAR AGO GOING RIGHT INTO THE
START OF THE PANDEMIC BUT IT'S
ACTUALLY FORM VERY VERY WELL
WITH STRONG GROWTH FOR THE 1ST
QUARTER.
AND ANOTHER THING IS WORKING
FANTASTICALLY FOR THIS IS THE
CONTINUED TRACTION OF PEOPLE
INTO OUR OUR MOST PREMIUM, ALEX
AND SANDWICHES ARE MADE TO
CREATE MENUS THAT OUT FORMING
WITH PRODUCTS LIKE THE JALAPENO
POPPER CHICKEN SANDWICH AND ALL
OF OUR PREMIUM SANDWICHES
CONTINUE TO PERFORMANCE AND
DRIVE NOT ONLY THE QUALITY
PERCEPTION OF WENDY'S BUT
OVERALL VERY STRONG CHECKS AND
VERY SHOWERS ALSO AS A WHOLE.
>> THERE'S 2 THINGS SEPARATELY
BECAUSE THAT'S A THAT'S A
COMBINATION OF PRICE FOR A
TICKET. BUT
THAT'S ALSO A NATION OF THE
MENU INNOVATION AS WELL SO
PERHAPS WE CAN START OFF WITH
THE MENU INNOVATION BECAUSE
SINCE YOU'VE LAUNCHED BREAKFAST
AND MAKES UP ABOUT 7% OF SALES
FOR WENDY'S
WE UNDERSTAND IN THE MENU
INNOVATION FRONT EVEN AS YOU
THINK ABOUT BREAKFAST OR THEIR
OTHER DIFFERENT MENU OPTIONS
THAT YOU'VE TESTED IN SPECIFIC
MARKETS WHERE YOU LOOK AT
THOSE RESULTS AND ARE MAKING
THOSE DECISIONS ACTIVELY TO
BRING THEM TO A MORE NATIONWIDE
ARE
LARGER SCALE.
>> YEAH, I THINK WITH WITH
BREAKFAST ITSELF, THE ENTIRE
MENU WAS BRAND
NEW YEAR AGO AND CONTINUES TO
BE SOMETHING THAT WE'RE DRIVING
BOTH AWARENESS AND TRY.
IT'S BEEN REALLY GOOD TO SEE
THAT THAT MAN YOU CONTINUE
TO GROW IN THOSE TRIAL METRICS
AND WHAT WE'VE SEEN EARLY IN
THE YEAR SO WE'RE REALLY PROUD
OF THINGS LIKE THE BREAKFAST
BACON A YEAR. THE HONEY BUTTER
CHICKEN BISCUIT, THOSE 2
PRODUCTS TEND TO BE ON THE TOP
2 PERFORMING PRODUCTS. ON THE
MENU AS A HALL AND ALL OUR
FORCE OT BASED PRODUCTS ARE
DOING REALLY WELL
SO WHAT IN THE EARLY STAGES OF
DRIVING TRIAL ON THIS GREAT NEW
MENU
AND MORE MOBILITY HAS HAS BEEN
CHALLENGE TO THE LAST YEAR SO A
LOT OF PEOPLE HAVEN'T HAD THE
OPPORTUNITY TO GET OUT AND TRY
SO WE'RE STILL WHAT WE BELIEVE
IS IN THE EARLY INNINGS OF THE
INNOVATION PHASE ON ON
BREAKFAST. WE DO HAVE A GREAT
PIPELINE OF OTHER IDEAS AND
OTHER CONCEPTS THAT WE'VE BEEN
WORKING AT WORK WHEN I'M READY
TO BRING
OUT YEAH. WE THINK THE TIME IS
RIGHT WE'LL GET AFTER THOSE AND
THE REST OF THE YOU KNOW
WE'VE HAD REALLY GOT A LOT OF
WORK ON THE PAST YEAR OR OVER
THE PAST YEAR A DIFFERENT MENU
WHICH
I MENTIONED AND WE'VE GOT GREAT
CORE PRODUCTS EVERY DAY LIKE
DAYS DOUBLE OR BACON 8 ARE
THESE ARE REALLY TRIED AND TRUE
BELOVED PRODUCTS.
BUT WE ALSO HAVE A NEW FLAVOR
EXPERIENCE IS THAT WE LIKE TO
BRING IN. AND BRING THEM IN ON
A LIMITED TIME BASED AND GREAT
MENU. IT HOW CAN YOU
POP OR IS A GREAT CHICKEN
SANDWICH IT'S ALSO BEEN A
GREAT SALAD FORREST, I KNOW HE
BROUGHT OUT YOU WANTED TO
PERFORM REALLY WELL WHERE WE
ARE NOW ARE CONTINUING THAT
INNOVATION AND WE JUST LAUNCHED
THE BOURBON BACON CHEESEBURGER
WHICH I CAN TELL YOU SOMETHING
YOU KNOW IT'S A LITTLE EARLY IN
THE DAY, BUT WHEN YOU'RE
THINKING
ABOUT LUNCH. THAT BURNED BACON
CHEESEBURGER IS GOING TO BE A
HOME RUN. ALL RIGHT FOR US SO
WE'RE REALLY EXCITED ABOUT ALL
THE DIFFERENT FLAVOR NEWS THAT
WE CONTINUE TO BRING THAT TO
THE TABLE.
>> OK AND SO WITH THIS GROWTH
THAT YOU'VE SEEN ARE YOU ALSO
SEEING A HIGHER PRICE PER
TICKET HIGHER CHECKS ACROSS THE
BRAND WE WE ARE.
>> IT'S BEEN AN INTERESTING
DYNAMIC AND TO BE HONEST.
IT'S HELD THERE. THERE ARE A
LOT LONGER THAN WE
EVEN EXPECTED. WE SAW SHAQ
STARTED TO GO UP
AS PEOPLE BY MULTIPLE MEALS AND
BRING THEM WAS WE GOT EARLY IN
THE YEAR
AND TO BE HONEST WITH YOU WE
THOUGHT THAT THE CHECKS WOULD
RETREAT A LITTLE BIT AND WE
HAVEN'T SEEN THAT WE'VE SEEN
PEOPLE CONTINUE
AND. TO MORE PREMIUM PRODUCTS
AND THAT'S WHAT'S KEEPING OUR
CHECK AVERAGES HIGH. I THINK
IT'S HELPING IS WE CONTINUE TO
LEAN IN ON DIGITAL AND MOBILE
ORDER.
AND CONSISTENTLY SINCE WE
STARTED DOING THAT WE ALWAYS
SEE MORE ELEVATED CHECKS FOR
FOR MOBILE ORDERS
AND BE ABLE TO CONTINUE TO GROW
THAT ADDITIONAL MIX WITH NOW
13 MILLION PEOPLE IN OUR
REWARDS FOR AND WE LOST OVER
THAT LAST YEAR AND IS REALLY
ENCOURAGING FOR WHAT IT CAN DO
FOR THE LONG-TERM HEALTH OF THE
CHECKS AND IN OUR BUSINESS, THE
OVERALL PROFITABILITY OF
THE BUSINESS. WE SHOWED UP IN
OUR MARGINS THIS YEAR ACROSS
ALL OF OUR US SHOOTING 17% FOR
THE
1ST QUARTER. SO A REALLY STRONG
BUSINESS PERFORMANCE AS A WHOLE
BUT REALLY BUILT THE FOUNDATION
OF CONNECTING WITH PEOPLE IN
THE WAY THAT THEY WANT TO
CONNECT WITH US AND THAT'S
GOING TO KEEP WINNING
IN 2.
>> WE'VE GOT ME THIS MEETS, I
KNOW THERE ARE SOME TESTS
TAKING PLACE IN LATE 2019 I
BELIEVE IN
SPECIFIC MARKETS AND EVEN SOME
MORE KIND OF VEGETARIAN OR
FLEXITARIAN OFFERINGS THAT YOU
ARE ALSO TESTING OUT IN
SPECIFIC MARKETS. ANY MORE ON
THAT FRONT THAT WE SHOULD
EXPECT IN
2021.
>> YEAH, I THINK YOU KNOW WE'LL
WE'LL CONTINUE TO EXPERIMENT
WITH DIFFERENT PRODUCTS WE
PARTNER WITH A LOT OF DIFFERENT
SUPPLIERS AROUND NOT. WE HAVE
PREVIOUSLY BROUGHT TO MARKET A
BLOCK IN AND AT LEAST IN TEST
MARKETS AND WE SAW VERY STRONG
PERFORMANCE
AROUND THAT. BUT WE WANT TO
MAKE SURE THAT WE HAVE A
PRODUCT THAT WORKS REALLY WELL
ON OUR OPERATIONAL MODEL OVER
TIME SO WE WILL BE BACK INTO
TEST MARKET WITH AN UPDATED
VERSION OF OUR HERE OVER THE
NEXT COUPLE NEXT COUPLE OF
MONTHS. WE'LL SEE IF IT'S GOING
TO HAVE A PLACE ENDURE NOT THAT
WE CONTINUE TO LEAN IN AND
MAKING
SURE THAT THEY WERE REINFORCING
WHAT WE STAND FOR I WAS FRESH
NEVER FROZEN BEEF. THE HIGHEST
QUALITY FOOD INGREDIENTS WE
BELIEVE IN US OR AND SO FAR
IT'S WORKING REALLY WELL
FOR US.
>> THIS TAKE US THROUGH SOME OF
THE DIGITAL INVESTMENTS AS WELL
YOU TALKED ABOUT THE CONSUMER
THAT'S BUYING 2, 3, MEALS BRING
THEM HOME. AND DIGITAL
INVESTMENTS
ALSO HELP MANY OF THE
COMPETITORS THAT ARE IN THE
SAME INDUSTRY DO JUST THAT AS
WELL HOW IS WENDY'S APPROACH
SOME OF THOSE DIGITAL
INVESTMENTS THAT WERE ALSO
TALKED ABOUT AND THE EARNINGS
REPORT BECAUSE OVER THE COURSE
OF THE PANDEMIC US OUR INDUSTRY
AND RELIANCE WAS ON THE
DRIVE-THRU LANES ON SOME OF THE
DIFFERENT MOBILE APPS
AND ORDERING THE DELIVERY
ORDERS I SHOULD SAY AS AND
WHERE MIGHT THE BRAND MAKE
ADDITIONAL DIGITAL INVESTMENTS
TO MAKE SURE THAT THOSE
CONNECTION POINTS
ON LAST. EVEN AS WE EMERGE INTO
A
POST-PANDEMIC NORMAL.
>> SURE OFFER FOR US WE'VE BEEN
INVESTING IN DIGITAL ON OUR
FRONT ON THIS FOR FOR A FEW
YEARS
GOING INTO WHAT REALLY PROVED
TO BE AN ACCELERATED ADDITIONAL
BUSINESSES A HOME WITH
EVERYTHING THAT WAS GOING ON
WITH
THE PANDEMIC I CAN TELL YOU FOR
US, YOU KNOW THE OF THE APP AND
HIS BAND OF SOMETHING WE'VE
BEEN LASER-FOCUSED ON MAKING
SURE THAT IT'S FAST AND
FRICTIONLESS FOR PEOPLE
TO USE. WE LAUNCHED THE REWARDS
PROGRAM, IT'S A BIG INVESTMENT
FOR US AS A WHOLE IS THE SYSTEM
TO BE ABLE TO MAKE SURE PEOPLE
OR INCENTIVE TO USE THAT
WE'VE GOT GREAT OFFERS GREAT
REWARDS WITHIN THE APP TO
ATTRACT PEOPLE
INTO IT AND THEN WE THINK THE
RESTAURANT LEVEL WE'VE INVESTED
IN SCANNERS AND SO IT'S EASY
FOR CUSTOMERS AND FOR OUR CREW
MEMBERS ALIKE TO BE ABLE TO USE
THESE TOOLS
AND WE'VE ALSO BEEN VERY
FOCUSED ON MAKING SURE THAT WE
CAN NOT THINK ABOUT OUR PARKING
LOTS
PARKING LOTS BUT REALLY THINK
ABOUT THEM AS MOBILE
TRANSACTIONS CENTERS. WE GET
PEOPLE THROUGH OUR RESTAURANTS
AS QUICKLY AS POSSIBLE. BECAUSE
WE'VE BEEN OBVIOUSLY YOU KNOW
IT'S ALREADY BUSINESS WE NEED
TO MAKE SURE THAT WE'RE AS FAST
AS WE CAN BE FOR PEOPLE WE'RE
DELIVERING HIGH QUALITY
EXPERIENCE WE'RE DOING IN A
VERY FRICTIONLESS WAY IT'S WHEN
YOU THINK GRAB AND GO IN MAKING
THAT EASY FOR PEOPLE OBVIOUSLY
THE PICKUP WINDOWS PLAYED
A MAJOR RULES FOR US AND WE
HAVE CURBSIDE AND 3,000
RESTAURANTS ON TOP OF HAVING TO
PICK UP
YOU SO WE'RE FINDING THAT
PEOPLE REALLY WANT TO ACCESS
THE BRAND AND A LOT OF
DIFFERENT WAYS AND DIGITAL IS
THE ENABLER ALL
OF THAT AND THEN ONCE THEY USE
THOSE DIGITAL TOOLS THEY HAVE A
BETTER EXPERIENCE BECAUSE WE'RE
ABLE TO GIVE THEM A
CUSTOMIZED EXPERIENCE AND FALL
THROUGH THE KINDS OF OFFERS
REWARDS AND OTHER THINGS THAT
THEY'RE REALLY LOOKING FOR.
>> CERTAINLY A DIFFERENT TYPE
OF CUSTOMER EXPERIENCE RIGHT
NOW KURT, WE'VE GOT AN UPDAT