Wendy’s launches Project Fresh to revitalize brand and boost profitability

Published 09/10/2025, 12:38
Wendy’s launches Project Fresh to revitalize brand and boost profitability

DUBLIN, Ohio - The Wendy’s Company (NASDAQ:WEN), currently trading near its 52-week low of $8.95 and down 46% over the past year, unveiled a comprehensive strategic plan called Project Fresh aimed at revitalizing the brand and accelerating profitability across its restaurant system, according to a press release statement issued Thursday.

The initiative focuses on four core pillars: brand revitalization, system optimization, operational excellence, and capital reallocation. The company has retained industry consultancy Creed UnCo, led by former Yum! Brands CEO Greg Creed, to assist in transforming its marketing effectiveness.

As part of the plan, Wendy’s will optimize labor and operating hours across dayparts while partnering with franchisees to maximize profitability. The company also intends to increase investments in customer experience through hospitality, digital capabilities, and equipment efficiency.

"Wendy’s Board of Directors and management team are dissatisfied with the current valuation of the Company," said Chairman Art Winkleblack in the statement. According to InvestingPro analysis, Wendy’s appears undervalued despite maintaining strong fundamentals, including a healthy EBITDA of $518 million and an attractive P/E ratio of 9.3. InvestingPro subscribers can access 10+ additional exclusive insights about Wendy’s current market position and future potential.

The fast-food chain is adjusting its capital allocation strategy, reducing funds for its Build to Suit program by approximately $20 million in 2025 with a larger reduction anticipated in 2026. These resources will be redirected toward technology and marketing initiatives to drive average unit volume growth in the U.S. The company maintains a strong dividend yield of 6.24% and has consistently paid dividends for 23 consecutive years, as revealed by InvestingPro data.

Wendy’s will maintain its international expansion efforts while focusing on improving U.S. restaurant performance. The company stated it remains committed to its dividend and returning capital to shareholders.

The board continues its search for a permanent CEO with the help of a global executive search firm, targeting completion by year-end. Interim CEO Ken Cook is currently leading the implementation of Project Fresh.

Wendy’s plans to provide additional details about these initiatives during its third-quarter results announcement on November 7, 2025. For comprehensive analysis and detailed insights about Wendy’s financial health and future prospects, investors can access the full Pro Research Report available exclusively on InvestingPro, which covers over 1,400 top US stocks with expert analysis and actionable intelligence.

In other recent news, Wendy’s has reported its second-quarter earnings for 2025, exceeding market expectations. The company achieved an adjusted earnings per share (EPS) of $0.29, surpassing the forecasted $0.26, resulting in an 11.54% positive surprise. Additionally, Wendy’s reported revenue of $560.9 million, slightly above the anticipated $558.31 million. These results have contributed to a positive outlook from analysts. Truist Securities has reaffirmed its Buy rating on Wendy’s stock, maintaining a price target of $13.00. The firm expressed increased confidence in Wendy’s management, following investor meetings with key executives, including CFO and Interim CEO Ken Cook. These developments highlight Wendy’s ongoing efforts to drive long-term same-store sales recovery.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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