DUBLIN, OHIO — The Wendy’s Co. is redesigning its organizational structure to maximize organizational efficiency and streamline decision-making. As a result, Wendy’s has eliminated the role of president, US, and chief commercial officer. Kurt A. Kane, who held that position, will depart Wendy’s.
“Following this change, we intend to embark on a broader redesign of our organizational structure as we see an opportunity to operate as a fully global brand with a unified voice approach and operating model,” said Todd A. Penegor, president and chief executive officer, in a Jan. 13 preliminary earnings call. “We anticipate that our 2023 and 2024 G&A will be relatively flat versus 2022 despite elevated inflationary pressures as a result of the redesign.”
More moves could come in US operations.
“We're looking at some of the existing head count in light of the (organization) changes that were announced this morning with the senior team on the US side with a few folks moving on,” Mr. Penegor said. “All of that is yet to come.”
Wendy’s largest shareholder, Trian Fund Management, L.P., approved of the capital reallocation.
“Trian believes strongly in the future of Wendy’s, is confident in the company’s growth plans and is strongly supportive of the capital allocation strategy announced today,” said Nelson Peltz, chief executive officer and a founding partner of Trian Fund Management. “Trian believes that the company is well-positioned to deliver significant long-term value for shareholders and looks forward to continuing to work with the board and leadership team to do so.”
Wendy’s stock on the Nasdaq was trading at $23.13 per share midday on Jan. 13, which was up 6% from a close of $21.78 on Jan. 12.
Wendy’s cash balance remained elevated at about $780 million at the end of 2022, said Gunther Plosch, chief financial officer for the Dublin-based company, in the Jan. 13 call.
“We will utilize excess cash to repurchase shares and reduce debt,” he said. “We announced today a new $500 million share repurchase authorization expiring in February 2027. This replaces the previously approved $250 million share repurchase authorization, which was set to expire in February 2023.”
In another personnel move, Leigh A. Burnside, senior vice president, chief accounting officer and CFO US, plans to resign and become CFO at another restaurant company. Suzanne M. Thuerk, currently vice president – accounting, has been appointed chief accounting officer effective Jan. 20.
Wendy’s on Jan. 13 also released preliminary, unaudited results for the fiscal year ended Jan. 1, 2023. Same-store restaurant sales growth was 4.9% globally, which included 3.9% in the United States and 12% internationally. Wendy’s in the fiscal year had operating profit of $353 million, down 3.7% from $367 million, and revenues of $2.1 billion, up 10% from $1.90 billion. In the fourth quarter, Wendy’s had operating profit of $84 million, up 9% from $77 million, and revenues of $537 million, up 20% from $473 million.
Wendy’s plans to release audited financial statements and file its annual report on March 1.