The Wendy’s logo is seen on a sign outside of the fast food restaurant near Bloomsburg.
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Wendy’s stock surged on Wednesday on a buyout offer from Nelson Peltz.
Peltz’s Trian Fund Management has offered $7.35 a share for the company, the Journal reported.
Rumors that Peltz was interested in buying Wendy’s circulated earlier this year, boosting the stock.
Wendy’s stock surged 17% on Wednesday on an offer from a famed activist investor to buy the fast-food chain.
The Wall Street Journal first reported that Nelson Peltz’s Trian Fund Management submitted a take-private offer. The fund submitted an offer to purchase the burger chain for $1.4 billion, or $7.35 a share, according to a regulatory filing with the Securities and Exchange Commission submitted on Wednesday. The offer represents about a 20% premium to the stock’s closing price on Tuesday.
Trian writes in the filing that “private ownership is the better path and would provide the patient, long-duration capital needed to restore the business and the franchise system to a position of strength.” The firm owns over 16% of the shares outstanding.
Speculation of Peltz’s interest in buying Wendy’s had also pushed the stock up earlier this year. In August, shares rose 14% on rumbling that the billionaire investor was considering a bid.
Peltz has been an investor in the fast-food chain for years, and his son sits on its board.
Wendy’s stock has struggled for years, down nearly 70% in the last five years as it struggles against shifts in consumer behavior and pickier US restaurant goers. The stock’s volatility has helped it achieve meme stock status among the day-trader crowd, which has helped it surge periodically.
Trian’s filing indicates that it sees Wendy’s as a potential turnaround story if it makes changes and can steer the business without dealing with the pressures of being a public company. The filing states that Wendy’s needs to “manage its balance sheet against approaching debt maturities and the significant capital investment needed for the brand.”
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