Nelson Peltz may either buy Wendy’s, buy more stock in Wendy’s, sell his stock in Wendy’s or push major changes.
That is according to a federal securities filing on Wednesday, in which the fast-food chain’s former chairman and its largest shareholder said he was considering his options for that investment.
Notably, Peltz is again toying with the prospect of buying Wendy’s outright. The filing says that Peltz’s Trian Fund Management has “spoken with potential financing sources, potential co-investors and certain potential strategic partners” on various potential transactions, including one in which he acquires “control of the company.”
Wendy’s stock soared 9% on the news in early morning trading on Wednesday.
Trian controls more than 16% of Wendy’s stock and Peltz has been involved a shareholder of the company in one capacity or another for more than 20 years. Peltz owned Arby’s and was an activist investor in Wendy’s. He pushed Wendy’s to make changes, notably selling Tim Hortons, then bought the chain through Arby’s and later sold that chain to Roark Capital.
He has considered this type of move before recently, notably in 2022. He later opted not to do so, ultimately opting for a bigger dividend and corporate reorganization. Peltz himself stepped down as chairman in 2024.
Yet Wendy’s has struggled badly since then, which has taken a toll on its stock. Wendy’s stock lost half its value last year.
According to the filing, Peltz believes Wendy’s stock is undervalued and that he is considering options for what to do with his shares. That could involve buying more shares or selling all or part of his shares.
The filing also said that he could “enter into financial instruments or other agreements” with other parties to “increase or decrease” his economic exposure on that investment. Or Peltz may take other actions.
The filing says that Peltz may retain advisers to evaluate that investment. “there can be no assurance that any such proposals will be submitted … or that any transaction will result from any such discussions or proposals,” the filing says.
Wendy’s has gone through considerable upheaval over the past couple of years. CEO Todd Penegor was ousted in early 2024 and replaced by former PepsiCo executive Kirk Tanner, who left 18 months later to take a job in the CPG industry, a business he preferred. CFO Ken Cook, who had only recently took the job after years with UPS, was named interim CEO in July. But Wendy’s has been without a permanent top executive for more than six months.
Same-store sales at the chain fell 11.3%, and continued to be weak into January, as the company struggled with a weak industry backdrop, a lack of marketing and delayed product launches.
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