Wendy’s Rejects Peltz Takeover Bid. It Has a Plan to Revive Sales.

Wendy’s rejected a takeover bid from Trian Fund Management, (Justin Sullivan/Getty Images))

Key Points

Wendy’s rejects a $1.4 billion all-cash takeover bid from Nelson Peltz’s Trian Fund Management.
Wendy’s announces a turnaround plan.
The company’s third-quarter U.S. comparable sales fall 5.7% year over year.

Wendy’s rejected a takeover bid from Trian Fund Management, the fast-food chain announced Thursday, as it unveiled a sweeping turnaround plan aimed at reviving slumping sales.

A $1.4 billion all-cash offer from Trian Fund Management, the hedge fund led by Nelson Peltz, “substantially undervalues” Wendy’s, the company said.

Wendy’s separately reported adjusted earnings of 13 cents a share, exceeding Wall Street’s consensus of 9 cents, according to FactSet. Revenue totaled $547 million, falling 0.5% year over year while still above expectations of $531 million. Wendy’s reported adjusted earnings of 24 cents a share the previous year.

Comparable sales in the U.S. dropped 5.7% year over year in the third quarter, an improvement from a 7% decline in the second quarter, but still worse than the 4.7% fall recorded a year earlier.

Wendy’s stock fell 0.6% to $7.60 in premarket trading on Thursday after ending Wednesday’s session up 5.2%.

Write to Ty Roush at tyler.roush@barrons.com

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