Activist investor Nelson Peltz’s Trian Fund Management is seeking investor support for a potential bid to take fast-food chain Wendy’s WEN-Q private, the Financial Times reported on Tuesday, citing people familiar with the matter.
Shares of Wendy’s, which has a market capitalization of US$1.3-billion, jumped about 7 per cent in early trading.
Deal talks at Wendy’s come at a time when two of America’s most popular national pizza chains - Papa John’s and Yum Brands’ Pizza Hut - are edging closer to selling to new owners as stiff competition, rising commodity costs and waning consumer demand undercut performance.
Trian has held discussions with outside investors, including in the Middle East, about funding a takeover of Wendy’s, according to the report, which Reuters could not immediately confirm.
Wendy’s and Trian did not immediately respond to requests for comment.
Peltz had considered a potential takeover bid for the burger chain in 2022. In February, he said Wendy’s stock was undervalued, and that he had spoken with possible financing sources about potential deals, including an acquisition or other major transactions.
“Going private and getting better cost alignment could really help Wendy’s turn around, but it all comes down to execution - we have all seen many takeovers fail in the fast food industry,” said Brian Mulberry, chief market strategist at Zacks Investment Management.
Although the Dublin, Ohio-based company beat first-quarter profit estimates on the back of strength in international markets when it reported results last week, it saw U.S. same-store sales fall in the second quarter, compared to a rise a year ago. The stock is down about 19 per cent so far this year.
Fast-food chains have been grappling with prolonged sales weakness in major markets like the U.S., as rising living costs and softer job conditions curb consumers’ willingness to eat out.
According to a February filing, Peltz holds a 16.24-per-cent stake in Wendy’s, up from 16.09 per cent held in July last year. Trian’s stake also rose to 7.85 per cent from 7.78 per cent in July 2025.
Wendy’s said at the time its board would review any proposal from Trian Partners in line with its fiduciary duties. It said it was moving quickly on its turnaround plans to improve U.S. operations while growing internationally.