9/16/2023 0 Comments 50 piece wendys nuggetsWe want to get people in and out of the restaurant quickly. And then we partnered with the franchisee community from day one to make sure they help us learn from the past and they could help us make sure we have something that was operationally simple. So that gave us the courage and impetus to start working on it. We have a very strong social voice and we really thought all of those tools lined up well to really take a good run at breakfast this time around. We have over 50% of our franchisees new, and with a long-term view on the business. We have more than 50% of our restaurants re-imaged. We started looking at all the elements of our business. We looked at it and thought what would it take to get back into breakfast and when would we be ready. Todd Penegor: We have been thinking about it for quite some time. What follows is an edited and condensed version of the interview.īrian Sozzi: Why is now the right time to pull the trigger again on breakfast? The sales momentum in the business suggests Penegor is right that the time is now for Wendy’s to get after it, so to speak. The company released bullish third quarter preliminary North American same-restaurant sales growth of 4.4% and a 20% dividend increase. Yahoo Finance caught up with Penegor fresh off his presentation - and those from his executive team - to analysts and investors at the company’s investor day Friday. Penegor says it’s time for Wendy’s to take some well thought out risks now that a good number of restaurants have been remodeled and customers are visiting more often. The main concern among analysts - generally taken by surprise by the shift in Wendy’s growing plate of initiatives - is that the company is sacrificing near-term profits in another breakfast launch that may not work well due to serious entrenched competition. The stock has stabilized a bit, rising about 4% in October. Wall Street hit Wendy’s stock hard in September (-9.2%) amid the emergence of Penegor’s more aggressive growth strategies, notably the re-launch of breakfast. You think about having the courage to play to win, we are really trying to create a compelling accelerated growth story and then carry that into our brand and our stock,” Penegor tells Yahoo Finance. In short, the mild-mannered and all around nice guy Todd Penegor - aka Wendy’s CEO - is ready to write his own chapter in a fast-food chain founded in 1969 by Dave Thomas and known mostly for its fresh beef promise, spicy fried chicken and mostly U.S.-centric store base.
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