Overview
- Reports on Wednesday, August 12 drove Wendy’s shares up as much as 17% and triggered a brief Nasdaq trading halt after the Financial Times said Trian is prepping a bid.
- The reported plan would pool Trian and Nelson Peltz’s combined stake of more than 24% with backers said to include franchisee Flynn Group and Abu Dhabi’s BlueFive Capital.
- Wendy’s has struggled operationally with six straight quarters of same-store sales declines, a pulled full-year outlook, a cut to its dividend, and closures of underperforming U.S. restaurants.
- Wendy’s issued a statement saying it would “thoroughly review any proposal,” while Trian and the named partners have not publicly filed a formal offer or confirmed the reports.
- If a regulatory proposal is filed in the coming weeks, the board’s choice to negotiate or run an auction could determine whether the chain is taken private and how franchisees, employees, and customers are affected.