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Wendy’s could introduce job cuts as part of restructuring

By Nagasunder in US business news, posted January 30, 2023

Fast food giant Wendy's has announced a restructuring and possible layoffs in order to speed decision-making and invest more in new restaurant development.

The announcement comes just a week after rival McDonald's announced a similar corporate reorganization, including plans to accelerate restaurant openings and improve efficiency.

McDonald's stated that more information about the layoffs will be communicated to employees by Monday, April 3, but Wendy's did not specify a date.

After McDonald's and Burger King, Ohio-based Wendy's is the third-largest burger chain in the US.

On Friday, April 27, Wendy’s announced that it anticipates a 10.5 percent increase in full-year revenue to $2.1 billion in 2022, which would surpass Wall Street's predictions.

On Wednesday, March 1 the company intends to release its full-year and fourth-quarter financial results.

In a conference call with investors, Wendy's Chairman and CEO Todd Penegor stated that the business is starting its reorganisation from a solid position.

With specials like a mint-flavored Frosty and a $5 Biggie Bag that includes a sandwich, chicken nuggets, fries, and a drink, US commerce surged in the fourth quarter.

However, Penegor said Wendy's has to concentrate more on expanding its global storefront and online sales.

Nearly 6,000 Wendy's locations may be found in the US, and around 1,000 are located in 31 other nations.

Penegor emphasized Wendy's would concentrate on brick-and-mortar locations rather than only takeout alternatives or other novel concepts.

Additionally, he wants to see the company maintain its lead in the quickly expanding breakfast market it re-entered in 2020 and enhance retail operations.

Penegor said: “As it removes some layers from the organization and allows us to speed up decision making, it can drive focus, it will drive efficiency, it will drive productivity.”

Wendy’s shares rose six percent to close at $23.08.

Wendy's announced on Friday that Kurt Kane, its president and US chief commercial officer, would be leaving the company.

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The company's chief accounting officer and senior vice president, Leigh A. Burnside, also announced his departure.

The company also announced that its board of directors has authorised up to $500 million in share repurchases and has increased its quarterly dividend to 25 cents per share.

Source: SuprGrow

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