Nelson Peltz is stepping aside as Wendy’s chairman, the company said Friday, ending one of the most active chairmanships in the fast-food chain’s history.
Arthur Winkleblack, who has been on the board since 2016 and has been lead independent director since last year, will take over as chairman.
Wendy’s named Peltz chairman emeritus “in recognition of his long-time leadership counsel, guidance and contributions to the board and company.”
The move comes as Peltz and his investment firm, Trian Fund, has been gradually selling off Wendy's shares. Peltz and Trian control 15.3% of the company’s stock. But it had been over 19% as recently as January.
Arthur Winkleblack/Photo courtesy of Wendy's
Peltz has been involved in some capacity with Wendy’s for nearly two decades. He bought up stock in the company in 2005 and began pushing for changes. As a result of those changes, Wendy’s spun off Tim Hortons in 2006.
Wendy’s continued to struggle and by 2008 the company agreed to sell to Peltz’s Triarc Companies, which at the time owned Arby’s. Triarc renamed itself the Wendy’s/Arby’s Company.
Wendy’s recovered but then Arby’s struggled and by 2011 that chain was sold to Roark Capital for $430 million.
Interestingly, Wendy’s kept a small stake in the chain, 18.5% at the time of the sale. It would prove prescient, as Arby’s improved under Roark. Wendy’s received hefty dividends from Arby’s over the following seven years. And then when Wendy’s sold its remaining stake in Arby’s back to Roark in 2018, it received $450 million, more than the original sale price.
Wendy’s, meanwhile, has leapfrogged rival Burger King and is now the country’s fifth-largest chain, though it has a ways to go before it catches up to that company internationally.
Peltz more recently toyed with the concept of acquiring Wendy’s. Instead, the company reorganized under then-CEO Todd Penegor. One year later, Penegor was out in favor of current CEO Kirk Tanner.
“Nelson has been an effective and collaborative leader, and Wendy’s has greatly benefited from his strategic vision and operational skills,” Tanner said in a statement.
As for Winkleblack, he spent time with the H.J. Heinz Company before he retired in 2013. He then worked with the auction company Ritchie Bros. Auctioneers, where he was a senior advisor to the CEO until 2019.
Peltz praised both Tanner and Winkleblack in a statement and said he believes the company is “in good hands for future growth and success.”
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