Wendy’s Stock Jumps 12% on Report of Peltz Takeover Bid

Wendy’s shares surged Wednesday after a Financial Times report said billionaire investor Nelson Peltz’s Trian Fund Management could soon launch an effort to take the fast-food chain private. The potential transaction would give Peltz and his investment partners control of a company with roughly 7,000 locations.

Trian, which currently holds a 16% stake in Wendy’s, is expected to form a bidding group with Flynn Group, one of the restaurant company’s largest franchisees, and Abu Dhabi-based BlueFive Capital, according to the Financial Times.

Peltz disclosed to the Securities and Exchange Commission in February that he was exploring options to increase value for Wendy’s shareholders. Those possibilities included having Trian take “control of the company.” At the time, Peltz also argued that Wendy’s shares had become undervalued after a significant decline over the previous year.

Should Trian proceed with a formal offer, the firm would initially present its proposal through a regulatory filing. Wendy’s independent directors would then determine whether to negotiate directly with Trian or potentially pursue a wider auction for the company.

Wendy’s told the Financial Times that it “would thoroughly review any proposal submitted by Trian consistent with its fiduciary duties.” The company also said its board “regularly reviews the company’s strategic priorities” with the goal of maximizing shareholder value.

Wendy’s stock climbed as much as 17% following the report before paring some of its gains. The shares were up more than 12.5% at $8.50 at approximately 1:20 p.m. EDT.

Peltz has had a long association with Wendy’s dating back to the 2000s. He served as chairman of The Wendy’s Company for more than 15 years before stepping down in September 2024. His departure came shortly after he reduced his position by selling 2.6 million shares at $20.30 apiece.

Trian previously held more than 19% of Wendy’s shares in 2022 and said at the time that it was considering a possible acquisition of the restaurant chain. Peltz subsequently said in 2023 that his fund would not move ahead with a takeover.

Wendy’s stock has fallen nearly 50% over the past 12 months, although the shares experienced a sharp rally in June during a Reddit-driven meme-stock surge. Trading activity jumped to $2.2 million during the week of June 22, compared with $109,600 in total trading volume the previous week. The renewed interest was fueled by posts on Reddit’s r/WallStreetBets and other forums, including a post urging users to “save” Wendy’s and another suggesting the company’s shares offered a more viable opportunity than SpaceX.

Peltz has an estimated net worth of $1.6 billion, while Trian manages approximately $8.5 billion in assets. The investment firm has holdings in Bank of New York Mellon, DuPont and food company Mondelez International.