Wendy’s said on Tuesday its CEO Kirk Tanner was leaving the burger chain after just over a year in the role to take on the top job at chocolate maker Hershey.
For Wendy’s, the change comes at a time when it has been grappling with muted sales as macroeconomic volatility pushes more people to eat at home. Its stock is down nearly 31 per cent this year.
Hershey had announced in January that Michele Buck, who had been CEO for over seven years, would retire next year and would transition to a senior advisor role once a replacement was named.
Tanner will take over at Hershey on August 18, a month after he departs Wendy’s, the two companies said in separate statements.
Wendy’s added it has appointed its CFO, Ken Cook, as interim chief.
The burger chain has also launched a search process to select a permanent CEO, and is set to report its second quarter results on August 8, it said.
“This departure comes at a potentially inopportune time for Wendy’s,” said Michael Gunther, analyst at Consumer Edge.
The burger chain has underperformed key peers in recent months, suggesting the initiatives to reinvigorate growth have not yet gained meaningful traction, Gunther added.
Tanner joins the Reese’s Peanut Butter Cups maker as it navigates higher tariff-related costs and persistently high cocoa prices amid growing uncertainty around consumer spending.
He was previously the CEO of PepsiCo’s PEP.O North America beverages business, before moving to head Wendy’s in February 2024.
“While Hershey faces challenges... we don’t surmise seismic change is necessary to steady its ship,” said Erin Lash, analyst at Morningstar, adding that it appears Hershey is falling into capable hands.
Tanner’s experience at PepsiCo should prove beneficial as the company navigates choppy waters, Lash said.
Hershey is expected to report its earnings on July 30.
Shares of Hershey are down about 3 per cent, while Wendy’s stock was flat.
(Reporting by Neil J Kanatt in Bengaluru; Editing by Leroy Leo and Sahal Muhammed)
