Wendy’s Shares Rise 14% on Report of Potential Take-Private Bid

Activist investor Nelson Peltz’s Trian Fund Management is seeking backing from outside investors, including in the Middle East, for a potential bid to take fast-food chain Wendy’s private, the Financial Times reported. Shares of Wendy’s jumped about 14 percent on the news.

The company has a market capitalization of $1.3 billion. The discussions are occurring as two major pizza chains, Papa John’s and Pizza Hut’s parent Yum Brands, move closer to sales amid stiff competition, rising commodity costs and reduced consumer demand.

Wendy’s and Trian Fund Management did not respond to requests for comment. The report could not be independently confirmed. Peltz had considered a potential takeover bid for the burger chain in 2022. In February he said Wendy’s stock was undervalued and that he had spoken with possible financing sources about possible deals, including an acquisition or other major transactions.

The stock has been falling for four consecutive years and is down nearly 19 percent so far this year, trading at a discount to peers. Wendy’s forward price-to-earnings ratio for the next 12 months stood at 11.17. That compares with 21.27 for Yum Brands, 20.34 for McDonald’s and 18.60 for Restaurant Brands International, which owns Burger King.

Despite beating first-quarter revenue and profit estimates, the Dublin, Ohio-based company posted its fifth straight quarterly drop in U.S. same-store sales last week. Wendy’s has more than 7,000 restaurants worldwide as of December 28, 2025. Peltz holds a 16.24 percent stake in Wendy’s, up from 16.09 percent held in July last year, while Trian’s stake rose to 7.85 percent from 7.78 percent, according to a February filing.

Fast-food chains have been grappling with prolonged sales weakness in major markets like the U.S. as rising living costs and softer job conditions curb consumers’ willingness to eat out. “There is no doubt that Wendy’s and the fast food industry’s margins have been under a lot of pressure recently as input costs have varied widely the past year or so,” said Brian Mulberry, chief market strategist at Zacks Investment Management.

Wendy’s said at the time of the February filing that its board would review any proposal from Trian Partners in line with its fiduciary duties. The company added that it was moving quickly on turnaround plans to improve U.S. operations while growing internationally.