Topline

Shares of Wendy's soared on Wednesday after the Financial Times reported Nelson Peltz's Trian Fund Management could lead a bid to take the restaurant chain private within a matter of weeks, a move that would hand the activist investor full control of a fast food giant with roughly 7,000 locations.

Key Facts

The coalition led by Trian—which already owns a 16% stake in Wendy’s—is expected to include Flynn Group, one of Wendy's largest franchisees, and Abu Dhabi-based BlueFive Capital, FT reported on Wednesday.

Peltz first told the Securities and Exchange Commission in February he was evaluating ways to enhance shareholder value, including a plan to have Trian take "control of the company,” and said he thinks the company's stock, which has fallen significantly over the last year, is undervalued.

If Peltz moves forward this time, Trian would first submit the proposal via a regulatory filing and Wendy's independent directors would then decide whether to negotiate directly with Peltz's firm or run a broader auction process.

Wendy's told the Financial Times it "would thoroughly review any proposal submitted by Trian consistent with its fiduciary duties," adding the board "regularly reviews the company's strategic priorities" to maximize shareholder value.

Shares of Wendy's skyrocketed as much as 17% after the FT report was published, and were up more than 12.5% to $8.50 as of around 1:20 p.m. EDT.

Key background

Peltz has been involved with the Wendy’s brand since the 2000s. He served as chairman of The Wendy’s Company for more than 15 years, until September 2024, shortly after he trimmed his stake in the company by selling 2.6 million shares for $20.30 per share. Trian, which owned more than 19% of Wendy's shares back in 2022, also said then it was considering a potential deal to buy the fast-food giant. The next year, however, Peltz said his fund wouldn't pursue the takeover.

TANGENT

Wendy’s stock, which has lost nearly half its value over the last 12 months, rallied in June after a Reddit-fueled meme-stock frenzy, including a post calling to “save” the chain. Wendy’s trading volume hit $2.2 million in a matter of days in the week of June 22, up from $109,600 the entire week before. Enthusiasm surrounding Wendy’s was driven by posts on Reddit’s r/WallStreetBets forum—which heralded the GameStop and AMC meme stock frenzies years earlier—including one post arguing Wendy’s shares were more viable than SpaceX.

FORBES VALUATION

Peltz, an activist investor, has an estimated net worth of $1.6 billion. His firm has $8.5 billion in assets under management and has stakes in Bank of New York Mellon, DuPont and food conglomerate Mondelez International. Peltz has 10 children including Nicola Peltz, who is married to David and Victoria Beckham's eldest son, Brooklyn.