Trian-led group bids to take Wendy's private
A group led by Nelson Peltz's Trian Fund Management has offered $7.35 per share in cash to buy Wendy's and take it private, a premium of about 19 to 20 percent over Tuesday's close. The bid values the fast-food chain at around $1.4 billion. Trian partners with restaurant operator Flynn Group and investment firms BlueFive Capital and Sixth Street Partners, and Trian already holds a 16.3 percent stake. Wendy's shares rose about 15 percent in morning trading on Wednesday, 28 Oct. The company has reported same-store sales declines for six straight quarters and is due to report third-quarter earnings on 5 Nov. A special committee is expected to assess the proposal.
Key facts
- Wendy's shares have fallen roughly 65 to 70 percent over the past several years.
- Wendy's share of US burger chain sales fell to 10.4 percent last year from 11.5 percent in 2019.
- Wendy's closed 240 US restaurants in 2024 and planned to close as many as 358 locations this year.
- Peltz considered a take-private deal in 2022 but dropped the idea in January 2023.
- Wendy's is scheduled to report third-quarter earnings before the bell on 5 Nov.
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Why it matters
A take-private bid would remove Wendy's from public markets if the special committee accepts the offer.
What changed
First published from CNBC, The Independent and The Economic Times