Overview
- Trian, reported Tuesday to be lining up funds from outside investors including in the Middle East, sparked a jump of about 22% in Wendy’s premarket trading.
- No formal approach has been made, and Wendy’s said its board would evaluate any offer in line with its duties.
- Peltz and Trian hold roughly 16% of the company, and a February SEC filing labeled the stock undervalued after outreach to possible financing sources.
- Wendy’s U.S. same-restaurant sales fell 7.8% in the first quarter as customer traffic weakened and costs for beef and labor increased.
- Management is pursuing a Fresh Start plan with menu updates and closures of weak stores, alongside an international push that includes a pact to build up to 1,000 restaurants in China.