Wendy’s, the popular fast-food chain, has announced the appointment of Kirk Tanner, a veteran from PepsiCo, as its new chief executive officer. The decision comes as the company aims to enhance its market standing and alleviate pressure from activist investors.

Tanner, who is currently in charge of Pepsi’s North American beverage business, is set to assume the role of CEO at Wendy’s on February 5. With over three decades of experience at Pepsi, including leadership roles in both the beverage and food service divisions, Tanner brings a wealth of expertise to his new position.

The outgoing CEO of Wendy’s, Todd Penegor, has been steering the company since 2016. During his tenure, Wendy’s achieved significant milestones, such as the successful nationwide launch of its breakfast menu, propelling the chain to surpass Burger King as the second-largest burger chain in the U.S. by sales. However, the company has encountered challenges, including a decline in spending by low-income consumers and the bankruptcy of a major franchisee, leading to a 14% drop in Wendy’s shares over the past year.

Amid these developments, activist investor Blackwells Capital has expressed intentions to contest Wendy’s board. Nevertheless, the appointment of a new CEO may influence the investor’s stance. Notably, Wendy’s board is already engaged in a potential conflict with another activist investor, Nelson Peltz, who chairs the board and has been a long-term investor in the company.

Wendy’s is scheduled to report its fourth-quarter earnings on February 15, and the market will be closely monitoring the company’s performance in light of the CEO transition. Meanwhile, PepsiCo has also announced that Ram Krishnan, the chief commercial officer and head of its international beverage division, will succeed Tanner as CEO of its North American beverage unit.