Nelson Peltz’s Trian Fund Management offered to buy out Wendy’s Co. for about $1.4 billion, saying the burger chain will be better off attempting a multiyear turnaround bid as a private company. The longtime Wendy’s shareholder made an offer to buy all outstanding shares of the fast-food chain for $7.35 per share in cash, a 20% premium to Tuesday’s closing price, according to a filing Wednesday.
Wendy’s shares rose 17% at 9:47 a.m. in New York. In the more than five years since Wendy’s brief turn as a pandemic-era meme stock, its shares had fallen almost 80% through Tuesday. The stock closed earlier this month at a 13-year low.
Trian is currently Wendy’s largest shareholder, with 16% of the company’s outstanding shares. The hedge fund is joining forces with Flynn Group LP, Blue Five Capital and Sixth Street Partners in its bid to take over the chain, according to the filing. Wendy’s has reported six straight quarters of falling comparable sales.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing