News

Wendy's names new chief operating officer

November 22, 2013

Wendy's has announced that John Peters, senior vice president of North America Operations, has formed a partnership with franchisee Rick Holland, and together they have signed an agreement to purchase 38 company-operated restaurants in the Phoenix market.

The agreement is part of Wendy's system optimization initiative. Peters will also lead operations for 73 Wendy's restaurants that Holland currently owns in Arizona, Colorado, Michigan, South Dakota and Ohio. The Phoenix transaction is scheduled to close in the first quarter of 2014 and will include an agreement for new restaurant growth and re-imaging.

Additionally, Bob Wright will rejoin Wendy's in early December and will assume the chief operations officer role in the first quarter of 2014 after a transition period with Peters. Wright, a restaurant industry veteran with a leadership background including previous Wendy's brand experience, will work together with Peters through the first quarter of 2014 to ensure an orderly transition.

Most recently, Wright was president, COO and interim CEO of the Charley's Grilled Subs chain. In this general management role, he led all company and franchise operations, marketing, supply chain, training, HR and business analysis for the Charley's system, which has more than 500 restaurants in 47 states and U.S. territories and 20 countries.

Previously, he was EVP of Company and Franchise Operations for Checkers Drive-In Restaurants, where he was responsible for more than 800 restaurants operating as Checkers and Rally's.

Prior to his most recent roles, Wright held a number of positions of increasing responsibility for Wendy's International Inc., including VP — Operations and Training Integration; president of the Cafe Express brand; director of Area Operations; and franchise area director.

Wright started his career with Domino's Pizza, where he held a number of roles throughout an 11-year period. He earned a bachelor's degree in Business Management from LeTourneau University in Longview, Texas, where he was an honors graduate.

Wendy's on track to sell 425 company-operated units

Wendy's also announced it was on track to sell 425 company-operated restaurants in 13 U.S. markets to franchisees. These restaurants are located primarily in the West, and are being sold to qualified operators on a market-by-market basis, with the completion of this process targeted by second quarter 2014.

Included in these agreements are specific plans to reimage certain restaurants in Wendy's Image Activation restaurant design. They also include development plans for new restaurants.

"The company expects to generate a higher operating margin and stronger free cash flow, along with further enhancing the quality of its earnings with a more predictable revenue stream from a higher percentage of royalty and rental income. This transaction with John Peters will ensure that an important market — Phoenix — will be led by a superb operator and an experienced veteran of the Wendy's system," Wendy's CEO Emil Brolick said in a news release.

As part of its system optimization initiative, the company has now sold or has announced signed agreements to sell 210 total restaurants this year. Transactions or agreements announced to date include:

• 54 restaurants, including one in development, in the Salt Lake City market to a subsidiary of NPC International Inc., in addition to 24 restaurants in the Kansas City market to NPC.
• 24 restaurants, along with two future locations, in the Seattle market to Cedar Enterprises Inc., a long-time Wendy's franchisee.
• 30 restaurants in the St. Louis market to BB St. Louis LLC, a partnership headed by current Wendy's franchisee and former NBA player Junior Bridgeman, along with current NBA player Chauncey Billups.
• A total of 40 restaurants to eight franchisees in other markets.

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