Wendy's shares jumped more than 14% after the Financial Times reported that Nelson Peltz's Trian Fund Management is preparing a bid to take the burger chain private. Trian is working with a group of other investors, and Wendy's says it will review any proposal it receives.
Wendy's shares jumped more than 14% on Wednesday after the Financial Times reported that Nelson Peltz's Trian Fund Management is preparing a bid to take the fast-food chain private. Trading in the stock was temporarily halted for volatility as the news broke.
Trian is working on the proposal with backing from other investors, including BlueFive Capital and Flynn Group, a large Wendy's franchisee, according to the report, which cited people familiar with the matter. The Financial Times' sources said the consortium might submit an offer within the next few weeks, though they cautioned the timing could shift or the bid might not be submitted at all.
Wendy's says it will review any proposal
Wendy's said in a statement it would "thoroughly review any proposal submitted by Trian consistent with its fiduciary duties." Representatives for Peltz did not immediately respond to a request for comment.
A chain already under pressure
The report comes days after Wendy's sixth straight quarter of same-store sales declines, a stretch that has helped Restaurant Brands International's Burger King overtake Wendy's as the second-largest burger chain in the United States by system sales. Shares had also slumped after the company announced a dividend cut last week, and recent research cited by the Fool indicates growth across the quick-service restaurant industry has slowed.
Peltz's long history with the chain
Trian purchased its initial stake in Wendy's in 2005 and now holds over 16% of the company's equity. Separately, a February regulatory filing showed Trian owns a 7.85% stake and Peltz a 16.24% interest in Wendy's, a filing that also called the stock undervalued. Peltz's activist campaign at Wendy's dates back more than two decades; Wendy's named him chairman emeritus in 2024 after 17 years on the board, and Trian executive Peter May and Peltz's son Bradley still sit on it. This isn't the first time Trian has weighed taking Wendy's private — the firm explored a takeover in 2022 before deciding against it.
Sources: CNBC, The Motley Fool
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