Dive Brief:
- Whataburger CEO Ed Nelson will retire from the company at the year’s end, according to a Tuesday press release. Debbie Stroud, Whataburger’s chief operating officer and executive vice president, will succeed Nelson on Jan. 1, 2025.
- Nelson spent around 20 years with the burger brand, starting in 2004 as controller. He became CFO in 2008, president in 2019 and CEO in 2020, according to the press release.
- Under Nelson, the brand grew outside of its Texas base, adding 250 locations across 16 states. In January, the chain reached 1,000 open stores. Earlier this summer, Whataburger opened its first unit in South Carolina, its 16th state.
Dive Insight:
Whataburger said the transition to Stroud’s leadership will be seamless. She joined the chain as COO in early 2023, according to the press release. Stroud previously worked at Starbucks, where she led retail operations. She has over 30 years of leadership experience in the restaurant and retail industries and has also worked at McDonald’s, where she spent a bulk of her career.
“[Stroud] has brought a wealth of knowledge and a strong vision for operational excellence and high-quality made-to-order food to Whataburger,” Matthew Rose, Whataburger’s chairman, said in a statement.
Stroud said that as CEO, she would preserve the core elements of the brand’s identity.
Whataburger’s growth under Nelson has included the development of off-premise only units, the first of which opened in Texas in September 2023. Those stores include external ordering kiosks, a mobile order pick up lane and pickup lockers. Digital channels, like its loyalty program, have emerged as a strategic priority for the company. In February,, the company appointed Scott Hudler as chief marketing officer. Hudler was influential in the development of Dunkin’s mobile ordering capability.
Whataburger is one of several mid-sized burger brands that has pursued growth in recent years. Jack in the Box is developing its first stores in Georgia, and re-entering the Chicago-area decades after departing the city. Shake Shack, meanwhile, is on track to open 40 new units in 2024, despite the closure of nine underperforming units this quarter.
Throughout 2024, many QSR brands have seen traffic problems as consumers cut down on their restaurant purchases following years of rising menu costs. To cope with consumer reticence, many brands have turned to value promotions. Whataburger — which does not announce its quarterly sales performance as it is a privately held company — launched a series of time-limited promotions dubbed the Summer of Savings. in July. These offerings includes free coffees with breakfast entrees and free kids meals on Tuesdays in August.
