Business

Wendy’s Largest Shareholder Trian Explores Burger Chain Deal


Trian Fund Management LP,

Wendy’s Co.

WEN -2.34%

Its largest shareholder, said it is looking for an acquisition or other potential deal for the fast food restaurant, as it works to improve sales and cope with costs. increase.

The activist hedge fund said it advised the fast-food chain’s board that it intends to explore and evaluate, according to a securities filing filed late Tuesday. value a potential transaction, alone or with a third party, to enhance shareholder value. According to the filing, a potential transaction could include an acquisition, merger, or other transaction that results in control of Wendy’s.

Shares of Wendy’s rose 17% to $19.08 in after-hours trading Tuesday.

Trian owns about 19.4% of the company’s shares and is the company’s largest shareholder, according to filings. Trian is led by billionaire founders Nelson Peltz, Peter May and Ed Garden. Mr. Peltz is the chairman of the board of Wendy’s and Mr. May is the vice-president.

Wendy’s said its board would carefully review any Trian proposal.

The company has been fighting to win over more consumers by increasing the number of locations and menu offerings, including through a new chicken sandwich. Gripe start a new breakfast business like the first time the pandemic hit and spent millions of dollars promoting and operating it.

Wendy’s stock is down 32% this year, trailing its rivals

McDonald’s Corp.

and owner Burger King

International restaurant brand Inc.

The company told investors earlier this month that its traffic slowed in the three months ending April 3, and that lower-income consumers accounted for a portion of the abandonment. . Wendy’s executives said sales among households with incomes under $75,000 were weaker. The chain raised prices in the first quarter, executives said, and intends to do so again in the current period.

Wendy’s, like other fast food chains, are struggling with rising costs. The company has told investors that its cost of goods is rising faster than expected, due to higher beef prices. Restaurant-grade profits fell in the first quarter, mainly due to increased merchandise, the chain said.

Trian, founded in 2005, made its first investment in Wendy’s predecessor that year. Mr. Peltz served as director of Triarc Cos., Wendy’s previous trading company, starting in 1993, and director of Wendy’s since 2008.

Write letter for Heather Haddon at [email protected] and Denny Jacob at [email protected]

Copyright © 2022 Dow Jones & Company, Inc. All rights reserved. 87990cbe856818d5eddac44c7b1cdeb8

Appeared on May 25, 2022, print edition as ‘Wendy’s Investor Looking for Deal.’



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