The Wendy’s Company Appoints New CEO From PepsiCo To Help the Franchise

The Wendy’s Company has named Kirk Tanner, a PepsiCo veteran, as its new CEO starting Feb. 5. This move comes as Wendy’s aims to increase its stock price and alleviate tension from influential stakeholders.

With over 30 years of experience under his belt at Pepsi, Tanner boasts a noteworthy career trajectory. He directed Pepsi’s North American beverage business and led the global food service division for three years. His extensive industry knowledge and leadership skills are expected to prove beneficial for Wendy’s.

Meanwhile, Todd Penegor, Wendy’s outgoing CEO, will be stepping back after spearheading the company since 2016. Penegor’s tenure was marked by significant achievements and challenges. He successfully launched Wendy’s breakfast menu across the nation, pushing Wendy’s past Burger King in sales and establishing it as the second-largest U.S. burger chain.

However, Penegor’s time at the helm hasn’t all been smooth sailing. Wendy’s has felt the pinch as low-income consumers reduced their spending at the chain, and a prominent franchisee filed for bankruptcy in November. As a result, Wendy’s shares have dropped by 14% in the past year, bringing its market cap to $3.97 billion.

Wendy’s is currently under the microscope of activist investor Blackwells Capital, which has threatened to challenge the company’s board. This CEO transition could potentially change the firm’s stance. However, if Blackwells proposes its nominees for the board, they might be entering a confrontation with another activist investor, Nelson Peltz. Peltz is the chair of Wendy’s board and has been investing in Wendy’s since 2005.

Peltz had previously attempted to buy Wendy’s through his firm, Trian Fund Management, but abandoned the effort, expressing confidence in the company’s performance. He remains a devoted investor despite his ongoing proxy battle with Disney.

In related news, Wendy’s is set to disclose its fourth-quarter earnings on Feb. 15. Additionally, PepsiCo has passed the baton over to Ram Krishnan, who is currently serving as the company’s chief commercial officer and head of the international beverage division. He will fill Tanner’s shoes as CEO of Pepsi’s North American beverage unit.