By Abigail Summerville
Aug 12 (Reuters) – Nelson Peltz’s Trian Fund Management is forming a consortium of investors to take U.S. fast-food chain Wendy’s private, a source familiar with the matter told Reuters on Wednesday.
The group could include Bugatti-backer BlueFive Capital and Flynn Group, one of Wendy’s longest-serving franchisees, and is likely to submit a bid in the coming weeks, the source said.
Wendy’s shares rose about 14%.
The potential take-private deal comes as the chain grapples with sluggish demand and a fresh leadership team evaluates strategic options as part of a broader turnaround effort.
The challenges mirror those across the U.S. fast-food industry, where discounts are proving less effective at drawing budget-conscious consumers, prompting Wendy’s to withdraw its fiscal 2026 forecast last week after reporting a decline in quarterly comparable sales.
Peltz, who had previously explored a takeover of Wendy’s in 2022, holds a 16.24% stake in Wendy’s – up from 16.09% held in July last year. During the same period, Trian’s stake rose to 7.85% from 7.78%, according to a regulatory filing.
The exact timing of the bid could change, the source cautioned. The Financial Times first reported the news on Wednesday.
Wendy’s, which has a market value of about $1.44 billion, according to data compiled by LSEG, said it would thoroughly review any proposal submitted by Trian in line with its fiduciary duties.
Trian, BlueFive Capital and Flynn Group did not immediately respond to requests for comment.
One of the best-known activist investors, Peltz helped found Trian in 2005 and has since campaigned to oust management and board members and change strategy at various companies. Earlier this year, the billionaire said that he is open to buying more companies outright.
In recent years, buyout firms have tried to buy other publicly traded restaurants, including Papa John’s, which has fended off offers from Irth Capital and Apollo Global over the last year.
Meanwhile, Yum Brands owned Pizza Hut agreed to sell itself, except for its China business, to private equity firm LongRange Capital in June.
(Reporting by Neil J Kanatt and Abigail Summerville, additional reporting by Anuja Bharat Mistry and Angela Christy M; Editing by Shailesh Kuber)
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