Nelson Peltz's Trian Fund Management is laying the groundwork for a take-private bid for US fast-food chain Wendy's with backing from a consortium of investors including BlueFive Capital, The Financial Times reported on Wednesday, citing people familiar with the matter.
Wendy's stock jumps Wednesday and is halted briefly for volatility.
The Wendy's Company (NASDAQ:WEN)'s traded down more than 5% on Monday after Jefferies highlighted a weaker-than-expected second quarter same-store sales performance and said near-term trends could remain challenged as the company's new leadership team works on a strategic plan. Wendy's reported US same-store sales declined 7% in the second quarter, missing Jefferies' estimate of a 5.7% decline.
Wendy's deals might be “biggie.” But it's performance this year hasn't been.
"Today we are clearly not performing at our potential," Wendy's CEO admitted in a statement.
Burger King reclaimed the No. 2 U.S. burger chain spot from Wendy's after its revamped Whopper and multiyear turnaround drove same-store sales up 8.5%.
Wendy's new CEO is embarking on a turnaround initiative, while acknowledging that issues around food quality and service have turned customers away.
