A 'hiring now' sign outside Wendy's on October 8, 2021 in Miami, Florida.
Joe Raedle | Getty Images
Wendy's tapped PepsiCo veteran Kirk Tanner as its new CEO, effective Feb. 5, as the burger chain tries to boost its stock price and ease pressure from activist investors.
Tanner currently heads Pepsi's North American beverage division. Prior to his time in the company's beverage division, he led Pepsi's global foodservice division for three years. In total, he spent more than three decades at Pepsi.
Kirk Tanner, CEO of North American beverages for PepsiCo Inc., speaks during the Bloomberg Power Players Summit in Miami, Florida, U.S., on Friday, January 31, 2020.
Marco Bello | Bloomberg | Getty Images
Outgoing Wendy's CEO Todd Penegor has been at the helm of the company since 2016. Under his leadership, Wendy's successfully launched its breakfast menu across the country, gaining the company's upper hand. citizen King as the second-largest U.S. hamburger chain by revenue.
But the chain has also faced some setbacks during his tenure. Low-income consumers have cut back on spending at Wendy's, and in November a major franchisee declared bankruptcy.
Shares of Wendy's have fallen 14% in the past year, dropping its market cap to $3.97 billion.
Activist investor Blackwells Capital plans to challenge Wendy's board, Reuters reported in December. The CEO transition could change the company's mind. But when Blackwells nominates its own board candidates, it begins a battle with another activist investor: Nelson Peltz, chairman of Wendy's board.
A year ago, Peltz dropped an attempt by his firm Trian Fund Management to acquire the company, in a sign of confidence in its performance, while Peltz waged a proxy battle with Disney. Trian has been investing in Wendy's since 2005.
Wendy's is expected to report fourth-quarter earnings on February 15.
Pepsi also announced Thursday that Ram Krishnan, chief commercial officer and head of the company's international beverage division, will succeed Tanner as CEO of the North American beverage division.