Investor Nelson Peltz prepares bid for US burger chain Wendy’s
Trian Fund Management, BlueFive Capital and Flynn Group could submit offer in the coming weeks
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 Bugatti backer BlueFive Capital.
Trian, a longtime Wendy’s shareholder, is assembling a group of co-investors for its bid that could include Flynn Group, one of the burger restaurant’s largest franchisees, and Abu Dhabi-based BlueFive, according to people familiar with the matter.
The group could submit its take-private bid in the coming weeks, the people said, cautioning that the timeline could still shift or the offer may not materialise. Trian, as Wendy’s largest shareholder with a 16 per cent stake, would be compelled to unveil any formal offer in a regulatory filing.
The chain’s independent directors would then decide whether to negotiate a deal with Peltz’s firm or run a broader auction, the people added.
Peltz has been preparing to launch a takeover of Wendy’s since February, when Trian said in a filing that the chain was “undervalued” and that it was reaching out to potential co-investors about strategic options including taking it private.
Wendy’s told the FT that it “would thoroughly review any proposal submitted by Trian consistent with its fiduciary duties”.
“The board, together with the management team, regularly reviews the company’s strategic priorities and opportunities with the goal of maximising value for all shareholders,” it added.
Trian, BlueFive and Flynn did not immediately respond to requests for comment.
Shares in Wendy’s are down 24 per cent over the past year, giving it a market capitalisation of $1.4bn at Tuesday’s close and an enterprise value of $3.7bn. The company has struggled with declining sales as customers opt for rival restaurant chains, as well as with soaring ingredient and labour costs.
Wendy’s stock briefly soared more than 40 per cent in a single trading session in June as meme stock traders on the WallStreetBets Reddit forum, famed for inspiring rallies in GameStop and AMC Entertainment, flocked behind the iconic burger chain.
Wendy’s, which operates roughly 7,000 stores, mainly in the US, was founded in 1969 by Dave Thomas, who often featured in the company’s advertising, as an “old-fashioned” hamburger chain with square beef patties and a milkshake known as a Frosty.
If a take-private bid materialises, Wendy’s would be the latest US restaurant brand to be targeted by buyout firms in recent years following Subway’s $9bn sale to Roark Capital and Blackstone’s $8bn deal for a majority stake in Jersey Mike’s, which has since been taken public.
Peltz’s Trian has a long history with Wendy’s, dating back to a 2005 shareholder activist campaign. Trian executive Peter May is on the Wendy’s board along with Bradley Peltz, one of Nelson Peltz’s sons. The Peltz family also holds a minority stake in an investment vehicle that owns 87 Wendy’s franchises in the New York region.
The FT reported in May that Trian had held discussions with outside investors, including in the Middle East, about financing a potential takeover of Wendy’s.
BlueFive Capital was founded in 2024 by Hazem Ben-Gacem, a veteran of the private equity fund Investcorp. Earlier this year, BlueFive was part of a group that acquired Bugatti Rimac from Porsche.
Flynn Group, which is also expected to be part of the consortium, is one of Wendy’s largest franchisees, operating about 200 stores in the US and others in Australia and New Zealand.