Wendy's launches strategic plan to boost growth and profitability

The Wendy's Company (NASDAQ: WEN) announced Project Fresh, a strategic initiative aimed at revitalizing the brand and increasing profitability across its restaurant system, according to a company statement.

The plan focuses on four areas: brand positioning, U.S. restaurant system assessment, operational improvements, and capital reallocation. The company has retained consulting firm Creed UnCo, led by former Taco Bell and Yum! Brands CEO Greg Creed, to assist with marketing transformation.

"Wendy's Board of Directors and management team are dissatisfied with the current valuation of the Company," said Chairman Art Winkleblack in the statement.

Ken Cook, Interim CEO and CFO, said the initiative represents "decisive steps together as One Wendy's to strengthen our foundation, enhance restaurant performance and modernize how our customers experience the brand."

Key elements include optimizing labor and operating hours, partnering with franchisees to maximize profitability, and reducing capital allocated to the Build to Suit program by approximately $20 million in 2025, with larger reductions anticipated in 2026. The company plans to redirect these funds toward technology and marketing investments.

Wendy's will maintain its dividend policy and capital returns to shareholders, supported by free cash flow generation. The company is working with a financial advisor to identify additional capital allocation opportunities.

The Board continues searching for a permanent CEO with assistance from a global executive search firm, targeting completion by year-end. Cook currently serves as interim CEO.

Wendy's operates over 7,000 restaurants worldwide through company-owned and franchised locations. The company will provide additional details about Project Fresh initiatives when it reports third-quarter results on November 7, 2025.

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