Wendy's rejected a $1.4 billion takeover offer from an investor group led by Nelson Peltz's Trian Fund Management on Thursday. The group, which also included BlueFive Capital, Sixth Street Partners, and Flynn Group, had offered $7.35 per share in cash on Oct. 28 to take the burger chain private.
Wendy's board formed an independent committee in February to assess the bid. The committee concluded the proposal "substantially undervalues" Wendy's and does not reflect potential gains from the chain's turnaround strategy under CEO Bob Wright.
To prevent a hostile takeover, Wendy's adopted a shareholder rights plan, or poison pill, with a one-year duration as of Wednesday. The company said the investor group rejected Wendy's offer for a standstill agreement that would have paused additional share purchases.
Trian declined to comment. The rejection continues a long history between Peltz and Wendy's dating back more than two decades. Peltz's firm Triarc previously owned Wendy's, buying it in 2008 for $2.3 billion before later spinning it off as a standalone company. Peltz spent 17 years on Wendy's board and was named chairman emeritus in 2024. Trian executive Peter May and Peltz's son Bradley still sit on the board.
Wendy's reported third-quarter results Thursday. Same-store sales declined for the seventh consecutive quarter. Quarterly earnings and revenue topped Wall Street expectations. Wendy's stock fell less than 1% in morning trading and has lost about 60% of its value over three years.