New president and CEO
In recent years, Wendy’s (WEN) made a few changes to its senior management team. It has a new president and CEO. Emil J. Brolick became the CEO in 2011. Previously, Brolick worked with Wendy’s for 12 years. Then, he moved over to Yum! Brands (YUM). Brolick was behind Taco Bell’s turnaround.
Brolick’s impact on share prices
According to management, Brolick was primarily recalled to drive Wendy’s same-store sales growth. Same-store sales growth is a measure expressing the percentage change in the revenue generated by existing restaurant locations compared to the same period last year. Since Emil Brolick’s appointment, Wendy’s share price has more than doubled. It reached a seven-year high.
New senior vice president, marketing
In July 2014, Brandon Solano was appointed as the senior vice president in marketing. He has expertise in brand building and product innovation. He has past experience with Domino’s (DPZ), Hershey (HSY), and Procter & Gamble (PG).
New executive for consumer-facing technology
Consumer-facing technology is any system that’s used to deal with the consumer directly. In February 2015, Michelle Mathews-Spradlin was added to the board. She served Microsoft (MSFT) for 18 years. According to Nelson Peltz, Wendy’s chairman, Mathews-Spradlin has been roped in specifically for her experience in digital media and market strategy.
Retention and performance of executives
Wendy’s new management personnel were specifically hired to drive sales and innovation. Wendy’s success will depend on the ability of its management and its efforts to retain them over the coming years. In the next part of this series, we’ll learn about Wendy’s share buyback plans.
Companies in the fast food restaurant industry can be accessed through ETFs like the Consumer Discretionary Select Sector SPDR ETF (XLY). XLY holds about 4.1% of McDonald’s.