Dublin, Ohio-based Wendy's, a fast-food restaurant chain, is undergoing an "organizational overhaul" and potential staff reductions.
Of course, changes are being driven by its largest shareholder and activist investor, Trian Fund Management, headed by Nelson Peltz.
Peltz is known for demanding board positions, changing executives, slashing staff, increasing dividends, stock buy-backs, and "exploring strategic alternatives," (a code phase for sale or merger).
According to an SEC filing...
"Nelson Peltz, Chief Executive Officer and a Founding Partner of Trian Fund Management, L.P., Wendy’s largest shareholder, and Wendy’s Non-Executive Chairman, said, “Trian believes strongly in the future of Wendy’s, is confident in the Company’s growth plans and is strongly supportive of the capital allocation strategy announced today.” Mr. Peltz continued, “Trian believes that the Company is well-positioned to deliver significant long-term value for shareholders and looks forward to continuing to work with the Board and leadership team to do so.”
The Company announced today that it intends to embark on a broader redesign of its organizational structure. The redesign will be made in an effort to better support the execution of the Company’s long-term growth strategy by maximizing organizational efficiency and streamlining decision-making. As a result of the redesign, the Company anticipates its 2023 and 2024 G&A will be relatively flat versus 2022, despite elevated inflationary pressures. The Company remains committed to driving accelerated growth across its three strategic pillars of building its breakfast daypart, accelerating its digital business, and growing its global footprint.”
Wendy’s plans to determine further organizational changes in the next 45 days to help reduce costs and boost its efficiency.
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. We see good people being laid off through no fault of their own. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?