MW Wendy's CEO is leaving. An analyst hopes new leadership will 'get more serious' about a restaurant overhaul.

By Bill Peters

BTIG analyst calls the departure 'a loss for Wendy's' amid efforts to set itself apart with new menu items

Wendy's Co. $(WEN)$ on Tuesday said Chief Executive Kirk Tanner will leave his role this month after less than two years in the job, to take the helm at the Hershey Co. (HSY)

As the fast-food chain seeks a permanent replacement, one analyst suggests that new leadership will have its work cut out.

That analyst, BTIG's Peter Saleh, said in a research note Tuesday that he is skeptical over Wendy's longer-term growth targets. He described Tanner's departure as a setback for the company as it has tried to stand out with new menu offerings, and he called on the chain to push harder on remodeling its stores to compete with bigger rivals.

Tanner, who became Wendy's CEO early last year, will leave his role on July 18, the company said. The burger chain's board has appointed Ken Cook, currently Wendy's chief financial officer, as interim chief executive.

Shares of Wendy's were down 1.5% in afternoon trading Tuesday.

The stock is down around 32% so far this year, as higher prices and stress over things like tariffs have made consumers more cautious about the economy and more reluctant to dine out or order takeout.

Saleh, in his note, said Tanner's departure was "a loss for Wendy's" amid efforts to set itself apart with new limited-time menu items - such as those celebrating the the 25th anniversary of "SpongeBob SquarePants," new Frosty drinks, and a spicy chicken sandwich and fries combo offered in collaboration with the snack brand Takis (MX:BIMBOA) (BMBOY).

He said he expects Wendy's current strategy to remain in effect until it finds a new permanent CEO and settles on a new direction, a process that could take months. However, he praised Wendy's efforts to invest in things like field personnel, training and technology upgrades - from new reporting tools to things like tablets and dishwashers.

"That said, we would really like to see Wendy's (and its franchisees) get more serious about remodels, elevating the brand to better compete against powerhouse brands like McDonald's that have invested billions into its facilities," Saleh wrote.

He noted that during Wendy's investor day in March, management said it was aiming to increase long-term unit growth by 3% to 4% a year as it opens new restaurants, while boosting sales by 5% to 6% annually.

In May, Wendy's reported a quarterly decrease in same-store sales for the first time since the height of the pandemic. The company also cut its full-year outlook, saying the consumer backdrop "remains more challenging than we anticipated."

After raising prices to offset pandemic-related shifts in the economy, fast-food chains began offering more discounts last year in an effort to lure back consumers worn out by inflation. Chains like McDonald's $(MCD)$, analysts have noted, have suffered from weaker foot traffic and "pricing fatigue." The rise of GLP-1 weight-loss drugs have also threatened the industry, according to some analysts.

Wendy's on Tuesday also said that Bradley Peltz was elected as a director, replacing Matthew Peltz, who resigned from the board.

-Bill Peters

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July 08, 2025 14:22 ET (18:22 GMT)

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