Nelson Peltz’s Trian Fund Management is preparing a take-private bid for Wendy's with backing from a consortium including Bugatti backer Blue Five Capital and franchisee Flynn Group. Trian, Wendy's largest shareholder with a 16% stake, could submit the offer in weeks. Wendy's shares jumped 12% on the news, giving it a market cap of $1.6bn.

Trian has been preparing the bid since February, when it said Wendy's was "undervalued". The chain's independent directors would decide whether to negotiate or run an auction. Wendy's said it would review any proposal consistent with its fiduciary duties.

Wendy's shares had fallen 24% over the past year amid declining sales and rising costs. The stock briefly soared 40% in June due to meme stock activity. Wendy's was founded in 1969 by Dave Thomas and operates roughly 7,000 stores.

If the bid materializes, Wendy's would join other recent buyout targets like Subway and Jersey Mike's. Trian's history with Wendy's dates to 2005, and Peltz's son Bradley sits on the board. Blue Five Capital, founded in 2024 by Hazem Ben-Gacem, was part of a group that acquired Bugatti Rimac.