Peltz-led group preparing bid to take Wendy's private, source says

By Abigail Summerville and Neil ‌J Kanatt

Aug 12 (Reuters) - ​Nelson Peltz's ​Trian Fund Management is forming a consortium of investors to take 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 - a Wendy's franchisee - and ⁠is likely to submit a bid in the coming weeks, the source said.

Wendy's shares rose about 12%.

The potential take-private ‌deal comes as the chain ‌grapples with sluggish demand, with a fresh leadership team evaluating strategic options as part of a broader turnaround effort.

"Wendy's has lost share within the quick service restaurants hamburger category ​for 17 straight months, with both transactions and frequency under continued pressure," Consumer Edge analyst Michael Gunther said.

The challenges mirror those across the U.S. fast-food industry, where discounts are ⁠proving less effective at drawing budget-conscious consumers, with Wendy's withdrawing 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 the chain - up from 16.09% disclosed ​in a filing in July last year. Over 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, said it would thoroughly review any proposal submitted by Trian in line with its fiduciary duties.

Trian declined ⁠to comment, while 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 change strategy and board composition 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 and ‌Vijay Kishore)

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