Trian puts Wendy’s takeover plans on hold, sources say

Nelson Peltz's Trian Fund Management has decided to temporarily suspend its efforts to acquire Wendy's, according to sources cited by Reuters. Despite exploring a possible bid for the US burger chain earlier this month, Trian - which holds approximately 16% of Wendy's - no longer plans to make an offer at this time. The news sent Wendy's shares soaring by 14.7% on August 12th, leading to a nine-month high and a market capitalization of around $1.7 billion.

However, share prices plummeted by over 14% in after-hours trading on Wednesday after the news broke. Trian remains dissatisfied with Wendy's recent performance, stock price, and strategic direction. The investment firm, though, retains the option to reconsider its stance in the future. Wendy's CEO Bob Wright, who assumed the role in May and is the fourth leader of the company in three years, may now have more time to execute a turnaround plan.

Wendy's has faced declining sales and lost its position as the second-largest US burger chain by sales. Despite a brief surge driven by takeover speculation, Wendy's shares are still about 60% below their level five years ago. Trian has maintained a long-standing relationship with Wendy's for nearly two decades, with Peltz co-founder Peter May serving on the company's board for 18 years and Bradley Peltz joining the nine-member board last year. Nelson Peltz and his other son, Matthew, have also previously served as directors on the board.