I wrote a whole turnaround thesis on $WEN yesterday. Basically, hiring Bob Wright doesn’t fit generated DCF analysis or valuation reports. It’s a human touch that requires trust and patience. And that’s the whole point of investment; trusting the best Men for the job. There is no one better qualified to revamp Wendy’s than Bob Wright. Forget the “ Apes”, bet on the floor general. Dude started as a Pizza delivery guy and worked his way up in the industry.
The turnaround will take at least 2 years to workout. This is not a short squeeze gamesmanship or revenge against the street, it is a real opportunity to revive a beloved US fast casual restaurant.
Feel free to check it out. Here is the gist of it.
The re-rating catalyst: “Taking opportunities that are presented to you.”
Bob Wright is the right fit to revamp WEN -11.72% and salvage one of America’s most recognizable fast-casual restaurants.
His selection aligns with the company’s founder ethos of simplicity, customer focus, quality, affordability, and premium service. More importantly, Bob Wright was brought back to re-engineer his successful turnaround of Potbelly at Wendy’s.
His career trajectory, including multiple leadership roles at Wendy’s and stints at Charleys Philly Steaks, Checkers, Domino’s, and Potbelly, shows a consistent focus on executional excellence.
At Potbelly, he completely rebuilt the management team and the organization to deliver industry-leading results.
He delivered approximately 785% total shareholder returns over 5 years, resulting in the company’s sale for $17.12 per share. He grew market capitalization from $50M to $566M in that same 5-year period.
He would be joined in his effort to revitalize the company by Steve Cirulis, Potbelly’s CFO, with whom he successfully steered the company out of near bankruptcy.
Bob Wright is a winner, but more importantly, a decent human principled floor general. And that’s exactly what Wendy needs.
