- Nelson Peltz, founder of Trian Fund Management, holds a 16.24% stake in Wendy's, according to a filing.
- The filing further said that Peltz could “enter into financial instruments or other agreements” with other parties to “increase or decrease” his economic exposure on that investment.
- Peltz’s Trian Fund Management has spoken with potential financing sources, potential co-investors and certain potential strategic partners.
Activist investor Nelson Peltz said that he is reviewing alternatives with regards to his investment in Wendy’s, as the founder of investment firm Trian Fund Management holds 16.24% stake in Wendy's, according to a filing.
Shares jumped more than 14% at the time of writing.
Peltz’s Trian Fund Management has spoken with potential financing sources, potential co-investors and certain potential strategic partners, regarding potential transactions in which such parties could participate and may benefit the company's shareholders, according to the regulatory filing.
Peltz thinks that Wendy's stock is undervalued and said that he is considering his options that potentially involve buying more shares of the company or selling all or part of his stake.
The filing further said that Peltz could “enter into financial instruments or other agreements” with other parties to “increase or decrease” his economic exposure on that investment.
Peltz had considered a similar move back in 2022 but decided not to go ahead with it and opted for higher dividend and corporate restructuring. He resigned as chairman of Wendy’s board in 2024 to devote more time to his hedge fund.
Weak Forecast
Wendy’s last week forecasted weak guidance for FY2026 that disappointed investors. The fast-food chain’s 2026 profit outlook of $0.56 to $0.60 per share fell well short of analyst expectations of $0.85 and at the time triggered selloff in the stock.
Wendy’s fourth quarter profit of $0.16 per share scraped past analysts’ earnings of $0.15 per share. Its revenue of $543 million in the quarter also edged above analysts’ estimates of $537.5 million.
Its global sales fell 8.3% to $3.4 billion in the quarter along with same-restaurant sales falling 10.1% globally.
How Did Stocktwits Users React?
Retail sentiment around WEN trended in ‘extremely bullish’ territory amid ‘extremely high’ message volume.
Shares in the company have fallen 45% over the past year.