Most times CEOs have to justify the reasons why their companies had poor quarterly results or why the losses kept on pilling several years in row, the one who takes the blame is the challenging economic climate. Emil Brolick, Wendy’s CEO, set the record straight and blamed the company itself for losses.
First of all, to clear things, Emil Brolick is Wendy’s CEO since last September and during the last quarter he managed to get the chain’s store sales to rise by 4.4 percent, marking the strongest boost since 2004.
Yesterday, Emil Brolick told investors that his purpose is to win back all the customers the company has lost over the past few years. Brolick’s strategy focuses on investing in brand building campaigns that incorporate essential factors such as restaurant designs, breakfast menus and the marketing strategy.
For this guy it seems that Wendy’s not so advantageous position is not scary at all. Brolick is virtually trying to get a dusty titan to step up, but at a time when competition is cut throat his objective might just fall to bits. Brolick wants Wendy to gain back all its market share that primary competitors such as Panera, Chipotle, Five Guys and Smashburgers enjoy right now.
For Brolick it is extremely obvious. The reason why Wendy’s went down the hill over the past few years, while investors started to grow weary of “a little bit of overpromising and under-delivering” was not the challenging economy. No, Brolick sets the record straight and argues that the issues causing the company losses came from the company itself.
The CEO said that the issues Wendy’s is dealing with are “not DNA issues”, but “issues we caused, and any time you have self-inflicted wounds, you can correct self-inflicted wounds”.
The hands on plan is to get rid “of those F restaurants and getting more A’s and B’s, but we’re still in that territory”. So the focus is to bring all Wendy’s locations up to date with standards for “friendliness and cleanliness”. Apart from that, to steal back its share from competitors such as Panera and Chipotle, Brolick’s plan is to cut down the prices.
In fourth quarter, revenue at Wendy’s rose 5.6 percent to $615 million, beating by little the $613 million estimates were expecting.