Nelson Peltz’s Trian Fund Management is forming a consortium of investors for a take-private bid for fast-food chain Wendy’s, according to a source familiar with the matter.
The group could include Bugatti-backer BlueFive Capital and Flynn Group, one of the burger restaurant’s longest franchisees, and a bid could be submitted in the coming weeks, the source said.
Shares of the company closed up 15% at $8.66 on Wednesday.
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 US fast-food industry, where discounts are proving less effective at drawing budget-conscious consumers, prompting Wendy’s last week to withdraw its fiscal 2026 forecast 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 filing.
The exact timing of the bid could change, sources cautioned. The Financial Times first reported the news on Wednesday.
Wendy’s, which has a market valuation of about $1.44 billion according to data compiled by LSEG, said it would thoroughly review any proposal submitted by Trian consistent 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 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.