A ‘now hiring’ sign outside of Wendy’s on October 8, 2021 in Miami, Florida.
Joe Raedle | fake images
Wendy’s has tapped Kirk Tanner as its new chief executive, as the burger chain tries to boost its share price and ease pressure from activist investors.
Outgoing CEO Todd Penegor has led the company since 2016. Under his leadership, Wendy’s successfully launched its breakfast menu nationwide, helping the company overcome king burger as the second largest hamburger chain in the United States by sales.
But the network has also faced some setbacks during his tenure. Low-income consumers have reduced their spending at Wendy’s, and a large franchise filed for bankruptcy in November.
Wendy’s shares have fallen 14% over the past year, dragging its market capitalization to $3.97 billion.
Activist investor Blackwells Capital is planning to challenge Wendy’s board, Reuters reported in December. The CEO transition could change the company’s mind. But if Blackwells nominates his own board candidates, he will pick a fight with another activist investor: Nelson Peltz, who is Wendy’s board chairman.
A year ago, Peltz abandoned an effort by his firm Trian Fund Management to acquire the company, indicating confidence in its performance as Peltz pursued a proxy fight with disney. Trian has been an investor in Wendy’s since 2005.
Wendy’s is expected to release its fourth-quarter results on February 15.
