Todd Penegor, the former Wendy's CEO credited with leading the company to significant success, has emerged from retirement to assume the CEO position of another famous brand.
According to the 2024 Franchise 500 Ranking, Penegor propelled Wendy's from a mid-tier player to the #2 fast-food restaurant and a top-20 franchise. After stepping down earlier this year, Penegor's retirement proved short-lived.
The fast-paced executive is now at the helm of pizza chain, Papa John's. What enticed him back into the corporate arena so swiftly? "I love the restaurant business. I'm hardwired for it," Penegor told Nation's Restaurant News.
"I started to think about what I missed in the space, the communities we're in, supporting a franchisee community, opportunities for our employee base. I missed it," the top executive added.
Under Penegor, Wendy's saw consistent revenue growth and an expanded global footprint, opening new locations in various international markets. Despite a major data breach impacting customer payments in May 2016, Wendy's stock surged under Penegor's leadership. The stock price nearly doubled from $8.34 at the start of his tenure to $18.29 on the day he retired in February 2023.
Penegor's tenure at Wendy's was marked by innovation and growth. The company introduced popular menu items like breakfast and fresh, never-frozen beef, while navigating challenges such as the Covid-19 pandemic.
Under his leadership, Wendy's embraced digital transformation, prioritising mobile ordering and modernising its restaurant design.
Papa John's: A House Divided
Founded in 1984 by John Schnatter, Papa John's has experienced a rollercoaster journey marked by both significant achievements and public controversies. The company's rapid expansion and strong franchise model fueled its success.
Schnatter's entrepreneurial understanding and emphasis on franchising transformed Papa John's into a global pizza industry leader. The company rapidly expanded by providing franchisees with robust support and training while maintaining consistent quality standards.
However, Schnatter's tenure was also marked by controversy. In 2012, he ignited public backlash by criticising the Affordable Care Act, claiming it would negatively impact franchisees and consumers. His comments led to a significant drop in Papa John's stock price.
In November 2017, Schnatter publicly criticised the NFL's handling of national anthem protests, linking them to declining NFL viewership and Papa John's sales. The comments sparked a public relations firestorm, with sales plummeting and competitors capitalising on the negative publicity. Schnatter resigned as CEO the following month but remained chairman of the board.
The company's troubles deepened in May 2018 when Schnatter, during a conference call, used a racial slur while attempting to defend his previous controversial statements. The incident sparked widespread outrage and led to his immediate resignation as chairman in July 2018.
Back to Better 2.0: A New Chapter
To distance itself from the Schnatter era, Papa John's has undergone a significant rebranding. The company removed the founder's image from all marketing materials and revamped its board of directors with independent members.
Papa John's is embarking on a strategic overhaul with its Back to Better 2.0 initiative. The plan centres on leveraging data science and marketing to drive growth. To bolster franchisee profitability, the company will increase marketing fund contributions and offer substantial development incentives.
On the global stage, Papa John's aims to establish regional hubs to tailor strategies to local markets. This approach is expected to fuel significant international expansion. As Papa John's navigates a path to recovery and growth, Todd Penegor's appointment as CEO marks a pivotal moment.
