WHEREAS:  The World Health Organization deems antimicrobial resistance one of the top 10 global health threats of 2019. Antibiotic resistance renders life-saving drugs useless; by 2050, this could cause an estimated 300 million premature deaths and up to $100 trillion in global economic damage.

The use of antibiotics in animal agriculture is a major contributor to antibiotic resistance. Nearly two-thirds of antibiotics sold for use in the U.S. are used in food animals. When antibiotics are routinely administered to animals, even for disease prevention, bacteria can adapt and spread, causing drug-resistant infections in humans.

Despite the urgent threat of antibiotic resistance, Wendy’s does not currently have a comprehensive policy to restrict antibiotic use in all of its meat supply chains. While the company has eliminated the use of medically important antibiotics in its chicken supplies, it continues to allow for the routine use of these drugs in its beef and pork supplies. Controlling antibiotics in chicken addresses only the surface of the problem. In the livestock sector, over 80% of medically important drugs are sold for use on cows and pigs, whereas just 4% of these drugs are sold for use on chickens.

Wendy’s competitors are making progress. McDonald’s announced a policy in 2018, currently being piloted in 10 countries, which will disallow the use of medically important antibiotics for prevention purposes in its beef supplies. Chipotle and Panera Bread have eliminated routine use of antibiotics in all meat. Leading burger chains BurgerFi and Shake Shack only serve meat raised without antibiotics.

Failure to keep up with competitors on an important public health crisis represents significant reputational threat to Wendy’s. Wendy’s has been directly targeted by major consumer advocacy groups for its lack of a comprehensive policy. In a 2018 survey, 60 percent of consumers said they would be more likely to eat at a restaurant that served meat raised without antibiotics; just as many said they are willing to pay more for that product. It is critical for the longevity of Wendy’s business that it meet growing consumer demands. Advocacy groups are testing products for antibiotic-resistant bacteria strains, which could lead to litigation if the company’s products are implicated.

Regulatory pressure on beef and pork producers has also increased. Consumer advocates are calling for stricter regulations, including prohibiting medically important antibiotics for the prevention of disease.

Shareholders urge the company to establish forward-looking policies to end the preventive use of antibiotics and keep up with peers and consumer demands across the industry.

BE IT RESOLVED:  Shareholders request that Wendy’s issue a report, at reasonable cost and excluding proprietary information, providing quantitative metrics demonstrating progress, if any, toward phasing out the routine use of medically important antibiotics in the company’s beef and pork supply chains.

Supporting Statement:  At company discretion, Shareholders recommend that the company include in its report the percentage of animals treated and types of antibiotics used.