MORE

Nelson Peltz, Trian will not be pursuing Wendy’s acquisition

David Paul Morris | Bloomberg | Getty Images

Nelson Peltz is not interested in a takeover Wendy’saccording to a regulatory filing made on Friday.

Peltz is non-executive chairman of the burger chain’s board of directors and CEO of activist firm Trian Fund Management, which is its largest shareholder. In May, Trian announced it was exploring a potential deal with the company to “add shareholder value,” which could include an acquisition or merger.

related investment news

Nelson Peltz's attempt to join Disney's board of directors could enforce much-needed accountability

CNBC Investing Club

“Trian believes the Company is well positioned to create significant long-term value for shareholders and looks forward to continuing to work with the board and leadership team to achieve this,” Peltz said in a statement dated Friday.

Shares of Wendy’s closed down 6% on Friday.

Trian, founded by Peltz, first invested in Wendy’s in 2005 when the fund originally launched. The company holds three board seats at the fast-food company, including von Peltz’s.

According to a research note from Kalinowski Equity Research, this result was “universally expected” by Wall Street. The lack of a deal buys time for Peltz, who went public this week with his desire to win a seat Disney‘s board through a proxy fight.

Also on Friday, Wendy’s announced a reorganization of its corporate structure and the departure of US CFO Leigh Burnside and Chief Commercial Officer and US President Kurt Kane. Burnside leaves to join another unnamed restaurant company while Kane’s position has been axed.

Wendy’s said the goal of the company’s redesign is to maximize efficiency and streamline decision-making. rival MC Donalds announced a week ago that it would also revise its corporate structure for similar reasons.

In a pre-announcement of fourth-quarter results, Wendy’s said same-store sales rose 6.4% for the three months ended Jan. 1. Net sales increased 13.4% to $536.5 million.

The company’s board of directors approved doubling the dividend to 25 cents and spending $500 million on share buybacks.

https://www.cnbc.com/2023/01/13/peltz-trian-no-wendys-takeover.html Nelson Peltz, Trian will not be pursuing Wendy’s acquisition

Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button

Adblock Detected

Please disable ad blocking software and refresh the page.