DUBLIN, Ohio–(AVC News)–Dublin-based Wendy’s announced that it had rejected a recent $1.4 billion buyout from activist investor Nelson Peltz, saying the offer undervalues the burger chain.
Peltz’s Trian Fund Management and its partners, including one of Wendy’s largest franchisees, had offered $7.35 per share in cash last month to take the company private. Peltz’s group already holds a 16.3% stake in Wendy’s.
Wendy’s CEO Bob Wright, who joined the company in May from Potbelly, said Wendy’s has a turnaround plan in place that is already reportedly producing good results.
Wendy’s also announced they have adopted a one-year “poison pill” plan intended to avert a hostile takeover of the company. The plan is allowing other shareholders to buy discounted stock if an investor reaches 15% ownership without approval.
Wendy’s has been closing outdated U.S. restaurants so it can focus on its more profitable locations. The company closed 240 restaurants in 2024 and said earlier this year that it planned to shutter up to 358 locations in 2026.
Then, in September, one of the largest U.S. franchisees for Wendy’s filed for bankruptcy protection after the chain tried to terminate its franchise agreement. Michigan-based Meritage Hospitality Group operates 314 Wendy’s restaurants in 15 states.
Recently, in yet another effort to improve profitability, Wendy’s announced they would allow individual franchisees to discontinue offering breakfast at low volume stores.
Despite slumping sales, shares of Wendy’s rose more than 2% recently as the company reported a better than expected performance during the third quarter.
