Dive Brief:
- Ken Cook will become Wendy’s chief financial officer on Dec. 2, reporting to Kirk Tanner, CEO and president, the company announced Monday.
- Cook replaces longtime CFO Gunther Plosch, who has held the role since 2016 and will leave the company on Dec. 31, following a period of overlap with Cook. The board of directors terminated Plosch’s employment without cause, according to a Securities and Exchange Commission filing.
- Cook’s appointment comes at a potentially pivotal moment for the burger brand, which is closing 140 underperforming stores.
Dive Insight:
Cook joins the company from United Parcel Services (UPS), where he was head of financial planning and analysis and CFO of the company’s U.S. division, according to the press release. He spent 20 years at the logistics company in various finance-related positions.
According to his LinkedIn, Cook’s tenure at UPS overlapped with the company’s preparations for a potential strike by the International Brotherhood of Teamsters, which was narrowly averted in the summer of 2023 in one of that year’s most dramatic showdowns between labor and employers. Cook should, therefore, have experience leading the finance efforts of a major company through a crisis point.
Tanner said Wendy’s is focused on improving the profitability of its stores and that Cook will “play a key role across our initiatives to increase revenue and expand margins as we enter the next phase of growth in the U.S. and around the globe, helping to unlock value for our shareholders.”
While Wendy’s problems differ from those of a parcel carrier like UPS, the restaurant industry in general is at a difficult point. The burger chain is in the process of closing about 2% of its system, and many other brands have had to take similar measures. Earlier this year, Wendy’s teased and then backed away from the possibility of dynamic pricing, which spurred considerable consumer backlash.
But the brand has managed to grow its same-store sales modestly, by about 0.5% across the first three quarters of 2024. This sales growth, at a time when many of its competitors like Burger King and Jack in the Box have seen comparable sales slip, means Wendy’s is one of the stronger performers in the burger QSR category. With McDonald’s sales sliding as a result of an E. coli outbreak, Wendy’s may have a chance in the next few quarters to strengthen its performance further.
