Wendy’s to invest at least $20M to boost AUV

Core Insights - Wendy's is facing challenges with sales growth and a significant decline in stock price, leading to a strategic repositioning initiative called Project Fresh [3][7] - The company aims to enhance its brand image and marketing effectiveness by collaborating with Creed UnCo, a consultancy led by former Taco Bell CEO Greg Creed [3] - Wendy's average unit volume (AUV) is currently $2.3 million for company-owned locations and $2.1 million for franchised locations, which, while higher than some competitors, still lags behind McDonald's AUV of nearly $4 million [4] Strategic Goals - Project Fresh is designed to strengthen the brand, increase profitability, and return to growth after experiencing two consecutive quarters of same-store sales declines [7] - The initiative includes reallocating $20 million from development initiatives to store-level improvements and marketing efforts [6][7] - Wendy's plans to optimize labor and operating hours, alongside investing in training, equipment, technology, and process simplification to support AUV growth [5] Financial Strategy - The Build-to-Suit program, with a budget of approximately $100 million, will help fund investments aimed at increasing AUV in underdeveloped trade areas [6] - Wendy's is working with a financial advisor to explore additional capital sources to enhance AUVs [6]