Wendy's chief executive Bob Wright outlined a five-point turnaround strategy on Monday, saying the burger chain sacrificed ingredient quality for cost savings and became too dependent on discounts, factors he said contributed to losing its long-held position as the country's second-largest burger chain by U.S. sales. Wright told The Wall Street Journal that Burger King seized that position by overhauling its Whopper sandwich and modernizing its restaurant fleet, and he said Wendy's has let its value equation erode. The plan covers food quality and value, operations, store upgrades, marketing, and digital sales, with a comprehensive menu overhaul needed across hamburgers, chicken, salads, and the Frosty-anchored dessert lineup. Wright also said Tariq Hassan, a former McDonald's executive, has joined Wendy's in the newly created role of chief marketing and customer growth officer, while the current head of U.S. marketing is set to leave within weeks. Wendy's cut its quarterly dividend in half and withdrew its full-year financial outlook earlier this month after reporting comparable U.S. restaurant sales fell 7.0% in the second quarter, its sixth consecutive quarter of negative same-store sales, with net income of $32.6 million, or 17 cents per diluted share, compared with $55.1 million, or 29 cents per diluted share, a year earlier. Nelson Peltz's Trian Fund Management, which holds a stake in the company and has board representation, has been exploring a potential deal to take Wendy's private, according to Reuters, with Flynn Group and BlueFive Capital among parties that may join a consortium.
The Wendy’s CoWendy's cut dividend, withdrew outlook, and reported weak earnings, with CEO outlining turnaround after losing No. 2 rank.
McDonald’s Corporation
Restaurant Brands International Inc