Wendy's (NASDAQ:WEN) has announced on October 5 that Emil Brolick, its present CEO, will retire before middle 2016. Todd Penegor, the present CFO, will take his place at the helm.
The outgoing Brolick has been the Chief Executive Officer of the presently 6,500 unit chain from September 2011, the time he returned to Wendy's after a hiatus of 11 years. He will exit the company after a due transition period. This period is set to begin from the first quarter of 2016. Brolick will continue to serve as a board member after that time.
Under Brolick's tenure, the company has remodeled its operated restaurants to be much more modern. It also started on a plan to sell a majority of the company owned outlets to the franchisees. Wendy's has previously declared in August that it is on track to reduce the ownership of restaurants operated by the company to only five percent of total. It is estimated that during 2017, approximately 80 percent of the total earnings by Wendy will be sourced from rental fees and royalties from its franchisees.
According to Nelson Peltz, the Chairman of Wendy's, Brolick guided the company to profitability and also sustainable growth. The former is a known activist investor who has lobbied for change in the company from late 2015 post taking a large position through Trian Fund Management LP, his investment firm. He purchased Wendy's in 2008. The company was then merged with Arby's , which was held by him through Triarc Cos, another holding company.
Wendy's posted a profit of about $121 million on revenue amounting to $2 billion for year ending December 28, 2014. This back to the black financial is in sharp contrast with the $4.3 million loss the company suffered in 2011. The period saw revenue dipping by 13 percent and reflected the sale of restaurants owned by the company. This stock accumulated almost 78 percent to about $8.69 per share during Brolick's tenure as CEO.
Brolick spent about 11 years of his professional life at Yum Brands (NYSE:YUM), where he held a few executive roles, ending with the CEO role. Before he joined Yum, the now CEO spent about 12 years working for Wendy in a number of management roles.
Penegor, who is 50 years old, joined the restaurant chain in June 2013 and was soon named finance officer that year's September. Prior to Wendy's, he worked at Kellogg's.