NELSON PELTZ'S TRIAN FUND PREPARES TAKEOVER BID FOR WENDY'S

Shares of Wendy's rose as much as 15% in morning trading on Wednesday after reports that Nelson Peltz's Trian Fund Management is preparing a takeover bid to take the burger chain private. The proposal is being developed with backing from other investors, including BlueFive Capital and the Flynn Group, a major Wendy's franchisee, according to sources cited in the reporting. Representatives for Peltz and Wendy's did not immediately respond to requests for comment. Trading in the stock was temporarily halted owing to volatility.

Wendy's has reported six consecutive quarters of same-store sales declines, a performance that has contributed to Restaurant Brands International's Burger King overtaking it as the second-largest burger chain in the United States by system sales. The chain has cycled through multiple chief executives over the past three years, with Bob Wright, the current CEO, arriving after leading Potbelly through its own take-private transaction. Peltz holds a 16.24% stake in Wendy's according to a regulatory filing from February, which characterised the stock as undervalued. Trian owns a 7.85% stake.

This represents Trian's second exploration of taking Wendy's private; the firm said in 2022 it was exploring a takeover before deciding against it. Peltz's involvement with Wendy's extends back more than two decades to an activist campaign he conducted at the company. The stock has risen approximately 1% so far this year.