Cook stated that the numerous initiatives taken during one hundred days of summer programming made it challenging for the company’s restaurant teams to execute effectively, as they sent too many different messages to its customers.
Wendy’s (WEN) interim CEO Ken Cook said on Friday that the fast-food chain’s U.S. revenue and the outlook for the rest of the year are below the expectations the company set at the beginning of the year, as the consumer and competitive environment looks much different currently than previously anticipated.
“Turning to our U.S. business, we are not happy with our sales performance. Our recent results are driven by a combination of dynamic consumer behavior and a more challenging competitive environment,” Cook said during a post-earnings call.
Wendy’s now expects full-year 2025 global system-wide sales to fall between 3% and 5%, compared with the prior forecast of a flat to 2% fall.
The retail user message count on Wendy’s jumped 127% in the last 24 hours on Stocktwits, as of Friday morning. Retail sentiment on the stock improved to ‘extremely bullish’ from ‘neutral’ a day ago, with chatter at ‘high’ levels, according to data from Stocktwits.
Shares of Wendy’s were up nearly 3% in early trading but have declined 37% so far this year.
A user on Stocktwits believes that the interim CEO was “super earnest and affable.”
Cook was named Wendy’s interim CEO after former head Kirk Tanner left to become the top boss at chocolate maker Hershey.
Cook added that the company’s one hundred days of summer programming included promotions on beverages, breakfast, meal deals, digital exclusives, and more. “This looked great on paper as it had something for everyone,” he said.
“This summer, we learned that when we have too many priorities, we have none,” Cook said, adding that the volume of initiatives made it challenging for the company’s restaurant teams to execute effectively and sent too many different messages to its customers.
“Based on this experience, we have simplified our calendar for the back half of the year,” he said. Wendy’s stock has declined by over 40% in the last 12 months.
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