According to the Financial Times, activist investor Nelson Peltz’s Trian Fund Management is rallying investor support for a bid to take the fast-food chain Wendy’s private.
Wendy’s shares, which have a market capitalization of $1.3 billion, saw a rise of around 14% on Tuesday.
The discussions about Wendy’s come at a time when major national pizza chains like Papa John’s and Yum Brands’ Pizza Hut are facing ownership changes amid slipping performance characterized by growing competition and rising costs.
Reports mention that Trian has explored financing options for the potential acquisition, engaging with outside investors, including those from the Middle East, although this has not been confirmed by Reuters.
Neither Wendy’s nor Trian provided comments in response to inquiries.
Peltz had contemplated a takeover offer for Wendy’s in 2022 and noted earlier this year that he believed Wendy’s stock was undervalued. He had mentioned contacting potential financing sources for what could be a significant transaction.
The company’s stock price has now declined for four years straight and is down nearly 19% so far this year, trading at lower valuations compared to its competitors. For instance, Wendy’s expected price-to-earnings ratio (P/E) over the next year is 11.17, while KFC’s parent company, Yum Brands, is at 21.27, and McDonald’s at 20.34.
Brian Mulberry, chief market strategist at Zacks Investment Management, commented on the situation, stating that the fast-food industry is facing significant margin pressures due to fluctuating input costs. He mentioned that while going private could help Wendy’s manage costs better, execution is key, as there have been many failures in fast-food acquisitions.
Wendy’s, based in Dublin, Ohio, recently recorded its fifth consecutive quarter of declining U.S. same-store sales, despite outperforming expectations for first-quarter sales and profits. The company has seen its stock fall consistently, now down nearly 19% this year.
As of December 28, 2025, the chain operates over 7,000 restaurants globally. Consumer spending has been curtailed by rising living costs and a tough job market, which has contributed to long-term sales declines in key markets like the U.S.
Peltz currently owns 16.24% of Wendy’s shares, up slightly from 16.09% in July last year, and Trian’s stake has climbed to 7.85% from 7.78% over the same period, according to filings from February.
Wendy’s stated that it would evaluate the offer made by Tryon Partners in light of its obligations to shareholders and is actively pursuing a turnaround strategy focused on enhancing U.S. operations while also expanding internationally.
