Billionaire Nelson Peltz Considers Acquiring Wendy's Again

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Hedge fund billionaire Nelson Peltz, a major Wendy's shareholder, is considering a takeover of the fast-food chain and believes the company's stock, which has fallen almost 50% over the last year, is undervalued. Peltz said in a Securities and Exchange Commission filing that he has been evaluating ways to enhance shareholder value, including a plan that would see his firm, Trian Fund Management, acquire more shares and 'control of the company.' The filing also said Peltz selling all or part of his Wendy's stake is on the table.

Why it matters

Peltz has a long history with Wendy's, having served as chairman of the company from 2007 until 2024. His potential acquisition of Wendy's could signal a shift in the fast-food industry, as the billionaire activist investor looks to capitalize on the company's perceived undervaluation.

The details

Wendy's shares dipped to about $6.75 earlier this month when a Feb. 13 earnings report showed falling U.S. same-restaurant sales, but soared as high as $8.28, up more than 16%, on Wednesday following Peltz's announcement. Peltz holds a 16.24% stake in Wendy's and Trian Fund Management has a 7.85% stake. Both Peltz and his firm have increased their stakes since last summer.

• In 2022, Trian, which owned more than 19% of Wendy's shares at the time, said it was considering a potential deal to buy the fast-food giant.
• In 2024, Peltz trimmed his stake in Wendy's by selling about 13% of his shares (or 2.6 million shares) for $20.30 per share, shortly after he stepped down as chairman of the company.

What they’re saying

What’s next

Peltz and Trian Fund Management will continue to evaluate options for acquiring more shares and potentially taking control of Wendy's, while the fast-food chain's management and board will likely respond to the billionaire investor's interest.