Wendy's Shares Surge After Billionaire Peltz Says Stock is Undervalued

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Shares of Wendy's rose around 15% after activist investor Nelson Peltz disclosed in an SEC filing that he believes the fast-food chain's stock is currently undervalued. Peltz's Trian Fund Management has spoken with potential financing sources, co-investors, and strategic partners about possible deals, including an acquisition or other major transactions, that could give the firm control of Wendy's. Peltz currently holds a 16.24% stake in the company, up from 16.09% last year.

Why it matters

Wendy's has struggled with persistent sales declines in recent quarters due to weak demand at its restaurants amid muted consumer spending. This contrasts with rivals like McDonald's and Yum Brands, which have managed to lift sales through strategies like adding value meals and menu innovations. Peltz's interest in potentially taking a larger stake or control of Wendy's suggests he sees an opportunity to turn the company around and unlock more value for shareholders.

The details

According to the SEC filing, Peltz's Trian Fund Management has spoken with possible financing sources, co-investors, and strategic partners about potential deals, including an acquisition or other major transactions, that could give the firm control of Wendy's. Peltz currently holds a 16.24% stake in the company, up from 16.09% held in July last year. The investment firm's stake also rose to 7.85% from 7.78% in July last year.

• On Wednesday, February 18, 2026, Nelson Peltz disclosed in an SEC filing that he believes Wendy's stock is undervalued.
• In 2022, Peltz had previously considered a potential takeover bid for Wendy's.

What’s next

Peltz and Trian Fund Management may continue to explore potential deals, including an acquisition or other major transactions, that could give the firm control of Wendy's.