The Wendy’s Company has revealed a comprehensive strategic plan named Project Fresh, designed to revitalize the brand, reignite growth and accelerate profitability.
According to the chain, the plan is grounded in a stronger franchisee partnership under the One Wendy’s approach and is centered across four core pillars: Brand revitalization, system optimization, operational excellence, and a reallocation of capital and resources.
“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,” said chairman Art Winkleblack.
Regarding brand revitalization, the company has retained industry consultancy Creed UnCo, led by Greg Creed, former CEO of Taco Bell and Yum! Brands, to assist in transforming its marketing effectiveness.
To optimize its system, Wendy’s will prioritize AUV growth in the US by partnering closely with franchisees, adopting a returns-based approach to franchisee investments. Internationally, capital will continue to be deployed efficiently to sustain strong net unit growth.
The company will reduce capital allocated to the Build to Suit program by approximately $20 million this year and a larger anticipated amount next year, allowing it to invest more in areas to drive AUV growth. It is also working with an independent financial advisor to identify additional opportunities to optimize capital.
In addition, the chain will increase its investments to enhance the customer experience, through digital and equipment efficiency, simplified processes, labor and technology and enhanced training.
According to Winkleblack, the board is working with a global executive search firm and is carefully evaluating internal and external candidates for the CEO selection process.
“The board will take the time necessary for this process and is targeting completion by the end of the year,” he said.
Former Wendy’s CEO Kirk Tanner left the company in July to become head of Hershey. CFO Ken Cook has been leading the business as interim CEO.
In the second quarter, the chain’s sales decreased 1.8 per cent amid a 3.3 per cent decline in the US.
