Wendy’s restructuring begins as CFO resigns and president role is eliminated

Wendy’s Co. is undergoing restructuring as its chief financial officer steps down. As it redesigned its organizational structure, the fast-food chain also removed the president role.

Wendy’s US is said to have made the decision to restructure to beef up its administrative efficiency and adjust the company’s decision-making. In addition, the redesign will also support the implementation of its long-term growth strategy better.

Because of this plan, the company eliminated its role of president in the US business and chief commercial officer. As a result, Kurt A. Kane, who held the president position, will leave Wendy’s.

CFO Dive reported that the shakeup in Wendy’s executive lineup and corporate reorganization comes after McDonald’s revealed it is preparing to lay off some of its workers last week. It was noted that the Starbucks coffee chain is also planning to make changes in its leadership this year after getting rid of the chief operating officer role.

“Following this (leadership) change, we intend to embark on a broader redesign of our organizational structure as we see an opportunity to operate as a fully global brand with a unified voice approach and operating model,” Wendy’s US’ chief executive officer, Todd A. Penegor, said in a statement in last week’s preliminary earnings call. “We anticipate that our 2023 and 2024 G&A will be relatively flat versus 2022 despite elevated inflationary pressures as a result of the redesign.”

As per Food News Business, Leigh A. Burnside, CFO, senior vice president and chief accounting officer, is also planning to resign and move to another fast-food chain to be its CFO. as of Jan. 20, Wendy’s appointed Suzanne M. Thuerk as its chief accounting officer.

“Our 2022 results highlight the strength and resiliency of Wendy's brand as we continued to deliver compelling sales and profit growth," Penegor further said in a press release for the company’s preliminary fourth quarter and full year 2022 results. “Supported by our business momentum and strong liquidity position, I am pleased to announce that our Board of Directors has approved a 100% increase in our quarterly dividend and a new $500 million share repurchase authorization.”

He added, “These actions are in alignment with our capital allocation policy while providing significant flexibility to continue to invest in growth."

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