Activist investor Nelson Peltz’s Trian Fund Management is seeking investor backing for a potential bid to take fast-food chain Wendy’s private, the Financial Times reported Tuesday, citing people familiar with the matter.
Shares of Wendy’s, which has a market capitalization of $1.3 billion, jumped about 14% on Tuesday.
The deal talks are taking place 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 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 possible deals, including an acquisition or other major transactions.
The stock has been falling for four consecutive years and is down nearly 19% so far this year, trading at a discount to peers. Wendy’s forward price-to-earnings ratio for the next 12 months, a common benchmark for valuing stocks, was 11.17, compared with KFC-owner Yum Brands’ 21.27, 20.34 for McDonald’s and 18.60 for Restaurant Brands International, which owns Burger King.
“There is no doubt that Wendy’s and the fast food industry’s margins have been under a lot of pressure recently as input costs have varied widely the past year or so,” said Brian Mulberry, chief market strategist at Zacks Investment Management.
“Going private and getting better cost alignment could really help Wendy’s turnaround, 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.
Despite beating first-quarter revenue and profit estimates, the Dublin, Ohio-based company posted its fifth straight quarterly drop in US same-store sales last week. The stock has been falling for four consecutive years and is down nearly 19% so far this year.
Wendy’s has more than 7,000 restaurants worldwide, as of December 28, 2025.
Fast-food chains have been grappling with prolonged sales weakness in major markets like the US, as rising living costs and softer job conditions curb consumers’ willingness to eat out.
Peltz holds a 16.24% stake in Wendy’s – up from 16.09% held in July last year – and Trian’s stake rose to 7.85% from 7.78% in July 2025, according to a February filing.
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 US operations while growing internationally.
