Wendy's Launches Project Fresh to Revitalize Brand & Reignite Growth

The Wendy's Company WEN has announced the launch of Project Fresh, a strategic initiative aimed at revitalizing the brand and driving long-term growth.

Management has expressed dissatisfaction with the company’s current market valuation and is committed to unlocking greater value. Through this initiative, Wendy’s aims to strengthen its brand, expand the business, boost profitability and ultimately enhance shareholder value.

New Initiatives to Regain Momentum

Wendy’s is optimistic and confident about Project Fresh as it will help the company in the long run. The new project may help WEN to turn around its growth trajectory. The initiative comes at a critical time, as the company faces headwinds from increased competitive pressures and evolving consumer preferences.

The factors in the new plan include a focus on brand revitalization, leveraging Wendy’s heritage of quality and innovation to connect with the next generation of customers with the help of consultancy Creed UnCo. The plan also includes reallocating resources to drive U.S. AUV growth, and investing in hospitality, digital tools and equipment efficiency. The company also plans to cut Build-to-Suit capital spending by $20 million in 2025, with further reductions in 2026, redirecting funds toward technology and marketing to support growth.

WEN’s Stock Price Performance

WEN stock has plunged 52.6% in the past year compared with the Zacks Retail - Restaurants industry’s 11.8% decline. The company’s outlook has been negatively impacted by lower U.S. systemwide sales, weaker traffic trends, rising commodity costs and wage inflation. Despite these challenges, management remains optimistic that its new strategic initiatives will support long-term growth and create value for its shareholders.

WEN’s Zacks Rank & Key Picks

Wendy’s currently carries a Zacks Rank #5 (Strong Sell).

Some better-ranked stocks from the Zacks Retail-Wholesale sector are Red Robin Gourmet Burgers, Inc. RRGB, Groupon, Inc. GRPN and Levi Strauss & Co. (LEVI).

Red Robin Gourmet Burger presently sports a Zacks Rank #1 (Strong Buy). The company delivered a trailing four-quarter earnings surprise of 58.3%, on average. RRGB’s stock has jumped 22.6% year to date. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for RRGB’s 2025 sales indicates a 3% decline, while the estimate for EPS suggests 77.5% growth from the prior-year levels.

Groupon sports a Zacks Rank of 1 at present. The company delivered a trailing four-quarter earnings surprise of 230.5%, on average. Groupon's stock has surged 79.2% year to date.

The Zacks Consensus Estimate for Groupon’s 2025 sales and EPS indicates growth of 2.4% and 153%, respectively, from the prior-year levels.

Levi Strauss carries a Zacks Rank of 2 (Buy) at present. The company delivered a trailing four-quarter earnings surprise of 26.7%, on average. Levi Strauss stock has gained 27.1% year to date.

The Zacks Consensus Estimate for LEVI’s 2025 sales indicates a 3.4% decline, while the estimate for EPS suggests 4% growth from the prior-year levels.

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This article originally published on Zacks Investment Research (zacks.com).

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