"The Trian Fund Management cofounder is looking for outside investors to help with a takeover of Wendy's, the Financial Times reports. The news isn't exactly surprising-in February, Trian used its regulatory filing to announce it might sell its stake or attempt a takeover of Wendy's."
"Peltz and Trian currently own a 16% stake in Wendy's, along with the Peltz family's minority stake in a New York-area Wendy's franchise owner. Peltz's son, Bradley Peltz, and Trian cofounder and president Peter May are also on the board of Wendy's."
"On May 8, the company released first-quarter results that beat analysts' estimates but saw disappointments like a 7.8% drop in U.S. same-restaurant sales. It also reported a net loss of 174 U.S. restaurants over the last two quarters. Wendy's did see 3.3% revenue growth year-over-year (YOY), with its international stores seeing more success."
"In October, Wendy's announced Project Fresh, a turnaround plan that includes brand revitalization, system optimization, and capital allocation, among other changes to drive growth and profits. On an investor call the following month, Wendy's further elaborated on a plan that would also include the closure of hundreds of U.S. location"
Trian Fund Management cofounder Nelson Peltz is pursuing outside investors to support a potential takeover of Wendy's. Peltz and Trian hold a 16% stake in Wendy's, and the Peltz family also has a minority stake in a New York-area Wendy's franchise owner. Peltz’s son and Trian cofounder Peter May sit on Wendy’s board. Wendy’s shares rose sharply after the news, though the stock remains down over the past year. Wendy’s has faced pressure from declining U.S. same-restaurant sales and net losses tied to restaurant closures. Revenue grew year over year, with international locations performing better, and Wendy’s plans expansion in China. Project Fresh targets brand revitalization, system optimization, and capital allocation, including potential closures of hundreds of U.S. locations.
Read at Fast Company
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