The Wendy’s Co. (WEN) recently announced the appointment of restaurant industry expert Emil J. Brolick as its chief executive officer (CEO) and president. Emil J. Brolick currently holds the position of chief operating officer (COO) in Yum! Brands Inc (YUM). The appointment will be effective from September 12.
Brolick replaces Roland Smith who previously served as the CEO of Arby’s and later in 2008 became the CEO of the merged company Wendy's/Arby's Group, when Nelson Peltz and his investment firm, which already owned Arby's, acquired Wendy’s International, Inc, the owner-operator-franchisor of the eponymous fast food chain.
Since its formation, the combined entity failed to perform and reported poor results in most of the quarters. Hence, in June this year, the company sold Arby’s to an Atlanta-based private equity firm and also moved its corporate headquarters from Atlanta back to Dublin, Ohio.
However, Smith will continue to serve as a senior adviser to the third-largest U.S. hamburger chain until the end of the year and will remain on the company’s board.
Apart from being the COO of Yum! Brands, Brolick was the president of A&W All American Foods and Long John Silver's. He has also served as the president of Yum! and Taco Bell. He was responsible for the turnaround in Taco Bell’s business as it became the nation's leading Mexican-style quick service restaurant chain under his leadership. Moreover, during Brolick 's tenure, Yum! witnessed continuous revenue and net income growth.
Prior to joining YUM! in 2000, Brolick had worked at Wendy's for 12 years, under company founder Dave Thomas. He played a key role in building the brand by achieving 16 consecutive years of same-store sales growth.
We remain optimistic regarding the appointment of Brolick as the CEO of Wendy’s and expect the company to attain new heights under his leadership. At present, Wendy’s remains on track to turn around and is poised for long-term growth.
After the completion of the sale of the struggling Arby’s brand, Wendy’s is concentrating solely on brand repositioning through restaurant modernization, closure of underperforming units and expansion plans in both domestic and international markets. Wendy's has growth plans in Russia, China, Brazil and other key overseas markets.
The company is all set to drive its revenue and post strong same-store sales in the third and fourth quarters of this year based on innovative products and the launch of a new cheeseburger line in October. Its new breakfast menu has also been well received by consumers. The company intends to deliver 10% to 15% average annual EBITDA growth in 2012 and beyond.
WENDYS CO/THE (WEN): Free Stock Analysis Report
YUM! BRANDS INC (YUM): Free Stock Analysis Report
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment