Wendy’s launches turnaround plan to drive growth, profitability
The Wendy's Company has unveiled a strategic plan as its deals with sluggish sales and changing consumer behavior — and continues its search for a new CEO.
Called “Project Fresh,” the new plan is designed to designed to revitalize the brand, reignite growth, accelerate profitability across the Wendy's system and enhance shareholder value. The burger chain has cut its guidance twice during the past year.
“Wendy’s board of directors and management team are dissatisfied with the current valuation of the company and have been working to put the company on the right path to create value for our franchisees, employees and shareholders,” chairman Art Winkleblack said in a statement.
In July, Wendy’s CEO Kirk Tanner left the company to become president and chief executive of The Hershey Company. Wendy’s named CFO Ken Cook as interim CEO while it searches for a permanent leader.
In his statement, Winkleblack said that the company continues to work “diligently” on the CEO selection process. The chain hopes to complete the process by the end of the year.
“We are working with a leading global executive search firm and are carefully evaluating internal and external candidates to ensure the strongest leadership to guide the company through its next phase of growth,” he stated. “The board remains focused on advancing the company's strategic priorities in close collaboration with interim CEO, Ken Cook.”
Strategic Plan
Brand revitalization is one of the key pillars of Wendy’s new plan. The company said it is looking to enhance its brand positioning and connect across all touchpoints with the next generation of customers. To that end, Wendy’s has hired consultancy firm Creed UnCo, led by Greg Creed, former CEO of Taco Bell and Yum! Brands, to help transform its marketing based on data-driven, needs-based customer segmentation analysis.
In terms of system optimization, Wendy’s is reallocating resources to prioritize AUV growth in the U.S. It is optimizing labor and operating hours across dayparts, partnering with franchisees to maximize profitability, using key insights from company-operated restaurants, and adopting a returns-based approach to operator investments.
Wendy’s is also increasing investments to enhance the customer experience in restaurants through hospitality, digital and equipment efficiency, simplified processes, labor and technology and enhanced training.
As far as capital allocation goes, Wendy’s will reduce money spent on its build-to-suit program for franchisees by roughly $20 million in 2025, and will cut it by an even larger amount in 2026. The chain said the cuts will allow it to invest more in areas to drive AUV growth, including technology and marketing. Wendy’s is also working with an independent advisor to find other opportunities to optimize its capital.
"With Project Fresh, we're taking decisive steps together as 'One Wendy's' to strengthen our foundation, enhance restaurant performance and modernize how our customers experience the brand,” stated interim CEO Cook. “Project Fresh is about reigniting the energy and distinctiveness that have always made Wendy's special, while positioning the company and our franchisees for profitable growth."
Wendy's and its franchisees operate over 7,000 restaurants worldwide.
