Wendy’s Taps Kirk Tanner As New CEO | Todd Penegor Retiring

Paresh Jadhav

11 months ago

Wendy’s is well known for their custom square burgers made-to-order using fresh, never frozen beef. Additionally, Wendy’s offers signature items like chili, baked potatoes and their Frosty dessert treat.

Nevertheless, some initiatives like their failing television commercials urging customers to “give it a nibble” have failed to gain traction with consumers.

Table of Contents

Toggle

Todd Penegor Retiring

The Wendy’s Company announced on April 29 that its President and CEO Emil Brolick will retire effective May 2016 but remain on its Board. Chief Financial Officer Todd Penegor will assume leadership as interim CEO until his replacement comes aboard in May.

Under his direction, the chain moved more towards premium dining with new offerings like pretzel bun sandwiches and chicken served in croissants; breakfast services and deli sandwiches were also trialed.

As the burger chain struggles to fight activist pressure and increase its share price, PepsiCo hopes that Tanner, currently heading its North American beverage business, can help increase sales. He joined PepsiCo’s ranks in 1992 as foodservice division leader before heading them for several years before coming over to NAB.

Activist Investor Blackwells Capital Accuses Wendy’s of Taking Advantage of Franchisees

Dave Thomas never wanted to become synonymous with fast-food consumption and wanted his restaurants to stand out from competitors’ offerings. So he made Wendy’s salad bar one of their signature features and started appearing in its ads to market their brand.

He worked to speed up decision-making processes, particularly for new-restaurant development projects. His experience expanding PepsiCo’s food service business could prove helpful as Wendy’s looks to increase its presence abroad – where there are currently fewer locations than domestically.

Blackwells Capital, led by its chief investment officer Jason Aintabi, plans to challenge Wendy’s board in order to increase its financial performance. Blackwells faces off against Trian Fund Management of Nelson Peltz’s Trian Fund Management which holds 16% in Wendy’s shares and has three representatives on its board of directors (Peltz himself, President Peter May and Peltz’s son Matthew working as research co-head). In previous cases he has used proxy fights as a way of fighting shareholder value; currently this time it is being waged against The Walt Disney Company under CEO Bob Iger.

Wendy’s Hires a Former PepsiCo Executive

Tanner worked at PepsiCo to expand their foodservice division through strategic partnerships and new product lines, as well as experience with supply chain management and marketing.

He will replace Todd Penegor as president and CEO, which reported its fourth quarter and full year results Thursday. Wendy’s also confirmed he will join its board.

Wendy’s announcement comes amid attempts by Blackwells Capital, an activist investor known for antagonizing Peltz over an ongoing dispute at Walt Disney Co, to nominate directors to The Wendy’s board, according to sources with knowledge of its deliberations process.

Peltz left Wendy’s as chairman to concentrate on building the company a year ago, and has since reduced projected ghost kitchen units and implemented new restaurant prototypes with high-capacity kitchens to increase efficiency. Furthermore, new incentive programs for franchisees have been established, such as reduced royalty rates and fee waivers.

Wendy’s Shares Rise

Kirk Tanner, an experienced PepsiCo executive who previously ran their North American beverage business, will assume control of Burger King as president and CEO on February 5. A regulatory filing indicates this appointment was made.

Trian Partners, managed by activist investor Nelson Peltz, owns 12.4 percent of Wendy’s shares and is known for being active across numerous industries.

Last month, Reuters reported that Blackwells plans to file a proxy statement prior to its annual meeting in late February in order to seek election of several directors with expertise in food and agriculture, according to reports from New York-based hedge fund Blackwells. Their campaign follows years of protests by workers from the Coalition of Immokalee Workers demanding Wendy’s source its tomatoes through Fair Food Program which provides farmers with support so they meet human rights standards.