AP

Wendy’s announces corporate revamp, possible job cuts

Jan 13, 2023, 2:29 PM | Updated: 2:30 pm

Wendy’s said Friday it’s planning a restructuring __ and possible corporate layoffs __ in an effort to speed decision-making and invest more in new restaurant development.

The news comes just a week after rival McDonald’s announced a similar corporate reorganization, also with plans to accelerate restaurant openings and improve efficiency. McDonald’s said it will communicate more details on layoffs to employees by April 3; Wendy’s didn’t give a date.

Dublin, Ohio-based Wendy’s, the third-largest U.S. burger chain after McDonald’s and Burger King, said Friday it expects its full-year revenue will rise 10.5% to $2.1 billion in 2022. That would be higher than Wall Street’s expectations. The company plans to release its fourth-quarter and full-year earnings on March 1.

Wendy’s President and CEO Todd Penegor said during a conference call with investors that the company is starting its reorganization from a position of strength, with 12 consecutive years of growth in global same-store sales, or sales in restaurants open at least 15 months. The U.S. business accelerated in the fourth quarter with promotions like a peppermint-flavored Frosty and a $5 Biggie Bag, which combines a sandwich, chicken nuggets, fries and a drink.

But Penegor said Wendy’s needs to focus more on global store growth and digital sales. Wendy’s has nearly 6,000 restaurants in the U.S. and just over 1,000 in 31 foreign countries.

Penegor emphasized that Wendy’s will narrow its focus to traditional stores, not to-go only options or other experimental designs. He also wants the company to continue its momentum in the fast-growing breakfast segment __ which it reentered in 2020 __ and improve store operations.

“As you take some layers out of the organization and allow us speed of decision-making, it can drive focus, it will drive efficiency, it’ll drive productivity,” he said.

Wendy’s shares rose 6% to close at $23.08.

Wendy’s announced Friday that it eliminated the job of Kurt Kane, its U.S. president and chief commercial officer, who will be leaving the company. Leigh A. Burnside, the company’s chief accounting officer and a senior vice president, also announced her departure.

The company also said its board authorized the repurchase of up to $500 million in stock and doubled its quarterly dividend to 25 cents per share.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

A woman pauses while shopping at a Kohl's store in Clifton, N.J., Jan. 26, 2024. On Thursday, Feb. ...

Associated Press

Federal Reserve’s preferred inflation gauge picked up last month in sign of still-elevated prices

An inflation gauge favored by the Federal Reserve increased in January, the latest sign that the slowdown in U.S. consumer price increases is occurring unevenly from month to month.

8 hours ago

This undated image provided by Mikel Desmond shows his brother Marcus Tessier, who turned up in Dem...

Associated Press

Missing teen with autism found in New Mexico, about 200 miles away from his Arizona home

A missing teen with autism has been found in New Mexico — about 200 miles away from his home in southern Arizona.

9 hours ago

A newly released report on last year’s fatal crash involving a pickup truck and a group of bicycl...

Associated Press

Report suggests steering of vehicle that caused fatal Goodyear bicycle crash worked fine

A new report on last year’s fatal Goodyear bicycle crash has cast doubts about the driver’s claim the vehicle’s steering locked up.

1 day ago

Israeli Embassy...

Associated Press

US airman dies after setting himself ablaze outside Israeli Embassy in Israel-Hamas war protest

An active-duty member of the U.S. Air Force has died after he set himself ablaze outside the Israeli Embassy in Washington, D.C.

3 days ago

Biden and Trump to visit Mexico border Thursday immigration...

Associated Press

Biden and Trump both plan trips to the Mexico border Thursday, dueling for advantage on immigration

President Joe Biden and former President Donald Trump will make dueling trips to the U.S-Mexico border on Thursday.

3 days ago

Arizona and New York attorneys feud over extraditing suspect...

Associated Press

Why Alvin Bragg and Rachel Mitchell are fighting over extraditing suspect in New York hotel killing

Maricopa County Attorney Rachel Mitchell says she isn't into extraditing a suspect due to her lack of faith in Manhattan’s top prosecutor.

7 days ago

Sponsored Articles

...

Midwestern University

Midwestern University Clinics: transforming health care in the valley

Midwestern University, long a fixture of comprehensive health care education in the West Valley, is also a recognized leader in community health care.

...

Collins Comfort Masters

Here’s 1 way to ensure your family is drinking safe water

Water is maybe one of the most important resources in our lives, and especially if you have kids, you want them to have access to safe water.

...

Sanderson Ford

The best ways to honor our heroes on Veterans Day and give back to the community

Veterans Day is fast approaching and there's no better way to support our veterans than to donate to the Military Assistance Mission.

Wendy’s announces corporate revamp, possible job cuts