Nelson Peltz’s activist investment firm Trian Fund Management is seeking investor backing for a potential bid to take fast-food chain Wendy’s private, according to a Financial Times report citing people familiar with the matter.
Shares of Wendy’s (WEN) surged on Tuesday following the report, climbing as much as 14% to $7.75.
The stock had closed Monday with a market capitalization of approximately $1.3 billion and has lost more than 45% of its value over the past year.
The reported discussions come as Wendy’s continues to face slowing customer traffic, rising beef costs, and pressure from increasingly cautious consumers, while also attempting to execute a broader turnaround strategy aimed at reviving sales growth.
Trian explores financing for potential deal
According to the Financial Times, Trian has recently held discussions with outside investors, including parties in the Middle East, regarding financing for a possible acquisition of Wendy’s.
Trian and Peltz have long-standing ties to the restaurant chain.
Peltz stepped down as chairman of Wendy’s board in 2024 but remains one of the company’s largest shareholders.
Regulatory filings show that Peltz personally owns approximately 16% of Wendy’s shares, while Trian co-founder Peter May also owns around 16%.
Trian itself holds an additional 8% stake.
Peter May and Bradley Peltz, one of Nelson Peltz’s sons, currently serve on Wendy’s board.
The Peltz family also owns a minority stake in an investment vehicle that controls 87 Wendy’s franchise locations in the New York region.
The activist investor has a history with Wendy’s dating back to a 2005 campaign.
In 2022, Trian pushed the company to explore strategic alternatives, including a potential sale, before stepping back from those efforts in 2023.
In a regulatory filing earlier this year, Trian said Wendy’s was “undervalued” and indicated it was considering options that could include a takeover proposal or reducing its ownership stake.
Wendy’s turnaround faces mounting challenges
The renewed takeover interest follows another difficult earnings update from Wendy’s last week.
The company said it was making gradual progress on its “Fresh Start” turnaround plan, which focuses on improving menu quality, boosting US sales, and closing underperforming locations.
However, executives also cited persistent headwinds from elevated beef prices and softer consumer demand.
Wendy’s operates roughly 7,000 stores globally, with most locations concentrated in the United States.
The chain’s shares have declined approximately 71% from their all-time closing high of $28.87 reached in June 2021.
As of Monday’s close, Wendy’s enterprise value stood at approximately $5.1 billion.
The broader restaurant industry has faced increasing competitive pressures as inflation and higher living costs push consumers toward value-focused dining options.
Fast-food chains, including McDonald’s and Burger King, have gained traction through value pricing and menu innovation, while higher-end chains such as Shake Shack have struggled with weaker outlooks.
Take-private activity grows across restaurant sector
The reported interest in Wendy’s reflects a broader wave of take-private activity across the restaurant industry as lower public market valuations attract financial buyers and activist investors.
Earlier this year, Denny’s agreed to a $620 million take-private deal.
Separately, Papa John’s has reportedly received takeover interest from Qatari-backed investment firm Irth Capital Management.
Trian itself recently participated in an $8 billion takeover of London-based asset manager Janus Henderson alongside General Catalyst and the Qatar Investment Authority.
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