Wendy’s Unveils ‘Project Fresh’, Focuses on Driving Growth, Enhance Value Creation

The Wendy's Company has unveiled Project Fresh, a comprehensive strategic plan designed to revitalize the brand, reignite growth, accelerate profitability across the Wendy's system and enhance shareholder value.

"Wendy's Board of Directors and management team are dissatisfied with the current valuation of the Company and have been working to put the Company on the right path to create value for our franchisees, employees and shareholders," said Chairman of the Board, Art Winkleblack. "Execution is underway and we are confident that Project Fresh will position Wendy's as the industry leader—one that guests love, franchisees are proud to operate, teams are excited to be a part of, and creates significant value for our shareholders."

Grounded in a stronger franchisee partnership under the One Wendy's approach, the Project Fresh plan is expected to provide a clear roadmap centered across four core pillars: brand revitalization, system optimization, operational excellence and a reallocation of capital and resources to drive profitable growth. Together, these initiatives will redefine how Wendy's operates, invests and engages with customers to create long-term value.

"Wendy's is a brand built on quality, authenticity and innovation," said Ken Cook, Interim Chief Executive Officer and Chief Financial Officer. "With Project Fresh, we're taking decisive steps together as One Wendy's to strengthen our foundation, enhance restaurant performance and modernize how our customers experience the brand. Project Fresh is about reigniting the energy and distinctiveness that have always made Wendy's special, while positioning the Company and our franchisees for profitable growth."

Key actions across Project Fresh to drive growth and profitability include:

•    Brand revitalization: Strengthening brand positioning by leveraging Wendy's rich heritage of quality, innovation and unique voice to connect across all touchpoints with the next generation of customers. We have retained leading industry consultancy Creed UnCo, led by Greg Creed, former CEO of Taco Bell and Yum! Brands, to assist in transforming our marketing effectiveness based on data-driven, needs-based customer segmentation analyses to improve relevance, ease and distinctiveness of the Wendy's brand.

•    System optimization: Reallocating resources to prioritize AUV growth in the U.S. with the goal of achieving industry-leading restaurant performance. This includes optimizing labor and operating hours across dayparts, partnering closely with franchisees to maximize profitability within each market, leveraging insights from Company-operated restaurants and adopting a returns-based approach to franchisee investments. Internationally, capital will continue to be deployed efficiently to sustain strong net unit growth and we remain encouraged by our growth trajectory, recent market entries and our significant international opportunities.

•    Operational excellence: Increasing investments to enhance the customer experience in restaurants through hospitality, digital and equipment efficiency, simplified processes, labor and technology and enhanced training.

•    Capital allocation: Optimizing capital expenditures to align with our near-term priority to drive AUV growth in the U.S. Changes include the reduction of capital allocated to the Build to Suit program by approximately $20 million in 2025 and a larger anticipated reduction in 2026, allowing Wendy's to invest more in areas to drive AUV growth, including technology and marketing. The Company is also working with an independent financial advisor to identify additional opportunities to optimize its capital allocation. The Company remains committed to its dividend and returning capital to shareholders, supported by its strong free cash flow generation.

Winkleblack added, "The Board continues to work diligently on the CEO selection process. We are working with a leading global executive search firm and are carefully evaluating internal and external candidates to ensure the strongest leadership to guide the Company through its next phase of growth. The Board remains focused on advancing the Company's strategic priorities in close collaboration with interim CEO, Ken Cook. The Board will take the time necessary for this process and is targeting completion by the end of the year."

The Company will provide further detail about these initiatives when it releases its third quarter results on November 7, 2025.