A “Now hiring” sign is displayed outside of a Wendy’s in Miami, Florida, on Oct. 8, 2021.
Joe Raedle | Getty Images
Wendy’s has tapped PepsiCo veteran Kirk Tanner as its new chief executive, effective Feb. 5, because the burger chain tries to spice up its share price and ease pressure from activist investors.
Tanner is currently head of Pepsi’s North American beverage business. Prior to his time at the corporate’s drink unit, he spent three years leading Pepsi’s global food service division. In total, he has spent greater than three a long time with Pepsi.
PepsiCo executive Kirk Tanner speaks in the course of the Bloomberg Power Players Summit in Miami, Florida, on Jan. 31, 2020.
Marco Bello | Bloomberg | Getty Images
Outgoing Wendy’s CEO Todd Penegor has been on the helm of the corporate since 2016. Under his leadership, Wendy’s successfully launched its breakfast menu nationwide, helping the corporate overtake Burger King because the second-largest U.S. burger chain by sales.
However the chain has also faced some setbacks during his tenure. Low-income consumers have reduce their spending at Wendy’s, and a big franchisee declared bankruptcy in November.
Shares of Wendy’s have fallen 14% over the past yr, dragging its market cap all the way down 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 firm’s mind. But when Blackwells nominates its own board candidates, it’s kicking off a fight with one other activist investor: Nelson Peltz, who’s chair of Wendy’s board.
A yr ago, Peltz dropped an effort by his firm Trian Fund Management to amass the corporate, signaling 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 predicted to release its fourth-quarter earnings Feb. 15.
Pepsi also announced Thursday that Ram Krishnan, the corporate’s chief business officer and head of its international beverage division, will succeed Tanner as CEO of its North American beverage unit.
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