This CEO Built Wendy's Into a Global Powerhouse. Now, He's Coming Out of Retirement to Run a Different Industry Giant. Todd Penegor oversaw a period of innovation, expansion and profitability at Wendy's before retiring earlier this year. Now he's back, at the helm of another company.
By Carl Stoffers Edited by Jessica Thomas
Key Takeaways
- Todd Penegor, former CEO of Wendy's, who led the company to significant success, has come out of retirement to take on the CEO role at Papa John's.
- During his tenure at Wendy's, Penegor oversaw consistent revenue growth, expanded its global footprint and introduced popular menu items.
- Penegor joins Papa John's at a transformative time.
Todd Penegor led Wendy's from 2016 to earlier this year, guiding the brand to the #2 fast-food restaurant spot and #17 in the 2024 Franchise 500 Ranking (#11 in the overall Food category). Now, only months into his retirement, Penegor is back, this time taking the CEO role at Papa John's. So, what caused him to return to work so quickly?
"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."
Leadership at Wendy's
Under Penegor, Wendy's saw consistent revenue growth and an expanded global footprint, opening new locations in various international markets. The company's stock performed strongly under the CEO — it was trading at $8.34 the day he took the helm in May 2016, and on the day of his retirement last February, the stock closed at $18.29.
The fast-food giant also introduced new and popular menu items during Penegor's tenure, including breakfast items and fresh, never-frozen beef. The CEO guided the company through the Covid-19 pandemic, led Wendy's push into digital and mobile ordering and championed remodeling its restaurants to create a more modern and updated atmosphere.
Papa John's background
Penegor will inherit a company in transition. Founded in 1984 by John Schnatter, Papa John's has seen both soaring success and cringe-worthy controversy. Schnatter built the brand into a worldwide powerhouse by using an effective franchising model and providing strong support and training to franchisees. This approach enabled rapid growth without compromising the brand's standards.
But in 2012, Schnatter, then chairman and CEO, made the first of a long list of publicly controversial comments. He came under fire for saying the Affordable Care Act could be a "lose-lose" for Papa John's franchisees and employees and that the law would raise pizza prices. Papa John's shares slumped about 4.2% during the controversy.
In November 2017, Schnatter publicly criticized the NFL's handling of the national anthem protests, claiming they negatively impacted both NFL viewership and Papa John's sales (the company was a major sponsor and advertiser of the NFL). The comments led to a significant public relations crisis, with sales reportedly declining and competitors like Pizza Hut capitalizing on the situation by emphasizing their own commitment to inclusivity. The following month, Schnatter resigned as CEO but remained the company's chairman of the board.
However, during a May 2018 conference call, Schnatter attempted to downplay the severity of his previous comments by citing the behavior of Colonel Sanders, the founder of KFC, and using a racial slur in the process. Schnatter resigned in July 2018 after news of the language surfaced.
Recently, the company has attempted to distance itself from the Schnatter controversy. It removed the founder's image from all marketing materials, including pizza boxes and advertisements. Last year, the company also restructured its board, bringing in new independent directors to provide fresh perspectives and oversight.
In the wake of the controversy, Papa John's also created the position of chief diversity officer to oversee and drive its diversity initiatives.
Back to Better 2.0
This year, Papa John's plans to revamp its strategy with the Back to Better 2.0 initiative, focusing on enhanced data science and marketing. The company will increase national marketing fund contributions and introduce major development incentives to boost franchisee profitability.
Internationally, Papa John's plans to establish regional hubs to align global practices with local needs, aiming for significant expansion.
