Activist investor is preparing a proposal to privatize the Wendy’s fast-food chain — FT

Trian Fund Management, the investment fund run by billionaire Nelson Peltz, is preparing a bid to acquire the Wendy’s fast-food chain, according to sources cited by the Financial Times. For the deal, the fund is assembling a consortium of investors that will likely include one of the chain’s largest franchisees, the Flynn Group, and Abu Dhabi-based investment firm BlueFive Capital.

The consortium may submit a bid to acquire Wendy’s in the coming weeks, though the timeline could still change and the deal itself may not go through, according to FT sources. Trian currently owns about 16% of Wendy’s, so the fund will be required to disclose a formal offer in its filings with the regulator. The pool of potential investors also includes the Flynn Group, which owns more than 300 restaurants in the chain, and the investment firm BlueFive Capital. BlueFive Capital served as a key financial partner in the consortium led by HOF Capital, which acquired a 45% stake in Bugatti Rimac from Porsche.

Once they receive the offer, Wendy’s independent directors will decide whether to enter into negotiations with Trian or launch a broader search for buyers, according to the FT.

“Wendy’s will carefully consider any proposal submitted by Trian in accordance with its obligations,” company representatives told the FT. The company’s board of directors and management, the chain added, regularly review strategic priorities and opportunities to maximize shareholder value for all shareholders.

Representatives from Trian, BlueFive, and Flynn did not respond to requests for comment.

Wendy’s shares rose 12% during trading on August 12 following the FT’s report. Year-to-date, the stock is up just 1%. The company’s market capitalization has reached $1.6 billion, while its enterprise value, including debt, stands at $3.9 billion, the FT notes.

Trian began preparing for a potential deal as early as February 2026. At that time, the fund stated that it believed Wendy’s was undervalued and announced that it was in talks with potential co-investors regarding various strategic options, including taking the company private.

The potential deal is being discussed amid challenges at Wendy’s: the chain is facing declining sales and rising costs for ingredients and labor. The company lost its second-place ranking in U.S. fast-food sales, falling behind Burger King. On August 7, Wendy’s withdrew its full-year guidance.

This article was AI-translated and verified by a human editor