Wendy’s has named former company executive Robert Wright as chief executive officer, a leadership change that comes amid reports that activist hedge fund Trian Fund Management is exploring a take-private deal for the restaurant chain, according to a report by the Wall Street Journal.
The appointment follows a Financial Times report earlier this month that Trian, the hedge fund founded by Nelson Peltz and Wendy’s largest shareholder, has been sounding out investors about backing a potential acquisition of the company. While neither Trian nor Wendy’s commented on the report, the speculation has intensified focus on the company’s strategic direction and ownership prospects.
Against that backdrop, Wendy’s has turned to Wright, a former chief operating officer of the business, to lead its turnaround efforts as it battles declining US sales, rising beef costs and pressure on consumer spending.
Wright, who takes up the role on Thursday and joins the board, returns to Wendy’s after most recently serving as CEO of sandwich chain Potbelly, where he oversaw the company’s approximately $566m sale to convenience-store operator RaceTrac last year. He has also held senior leadership positions at Charleys Philly Steaks, Checkers Drive-In Restaurants and Domino’s Pizza.
The appointment places an executive with both operational turnaround credentials and recent deal-making experience at the helm of a company that is increasingly being viewed through the lens of potential corporate activity.
Wendy’s said interim CEO Ken Cook will remain chief financial officer.
The company is in the midst of a turnaround programme focused on improving menu quality, strengthening restaurant operations and closing underperforming locations. In its most recent quarter, Wendy’s reported a 6.8% decline in same-store sales, including a 7.8% drop in the US, although revenue rose 3.3% on higher franchise fees linked to its optimisation strategy.
