Peltz Bids $7.35 per Share to Take Wendy's Private

Wendy's stock climbed 15% at the open of trading on Wednesday after Nelson Peltz's Trian Fund Management submitted an offer to acquire the company.

The proposal values each share at $7.35 in cash. This price represents a premium of nearly 19% above the stock's closing price on Tuesday. The transaction would remove the company from public ownership.

Peltz wrote in a letter to the board of directors that a private structure would serve the company's stakeholders best. He described the current market conditions as difficult, citing pressure on U.S. consumers and rising commodity costs. He noted that competition in the quick service burger sector has intensified.

Wendy's, which operates 5,969 restaurants in the United States and 1,428 outlets in 38 countries, has faced mounting financial headwinds. Inflation has driven up labor and packaging costs, forcing price increases that reduced traffic from lower-income customers. The company's share of U.S. burger sales dropped from 11.5% in 2019 to 10.4% last year, according to market research firm Technomic.

The chain has closed older locations to focus on more profitable sites. It shut down 240 restaurants in 2024 and plans to close up to 358 more this year. Last month, Meritage Hospitality Group, a major franchisee operating 314 locations across 15 states, filed for bankruptcy protection after Wendy's attempted to end their contract.

Regulatory filings show Trian currently holds a 16.3% stake in Wendy's. Peltz previously considered a buyout in 2022 but withdrew in January 2023, citing better business momentum at the time. An independent special committee is now expected to review the new proposal. Both parties have signed a confidentiality agreement.

Wendy's will report its quarterly financial results next week. Analysts expect the company to earn 9 cents per share on sales of $531 million. Wendy's shares closed Wednesday at $7.01, down 26% from the start of the year.