America's Favorite Redhead Just Got a $8 Billion Dollar Suitor (Again)

The Meal of Fortune… 

Nelson Peltz has a fever and the only medicine is America’s favorite Carrot Top (read: Wendy’s). According to an SEC filing dropped Wednesday, Peltz's Trian Fund Management has been chatting up financiers, co-investors, and "strategic partners" about potential deals for Wendy’s… including a full acquisition.

Live look at Wendy’s investors right now… 

(Source: Giphy) 

Naturally, shares immediately melted faces, ripping 17% on the news. But wait, haven’t we seen this movie before? You betcha. Peltz kicked the tires on a takeover back in 2022 and then just… didn't. Basically ghosted the whole thing and left Wendy’s on read. But now he's back with a 16.24% stake (up from 16.09% in July… so, barely moving the needle) saying the stock is undervalued and he might enter into "financial instruments or other agreements" to increase his exposure. Translation: Peltz is getting his Bobby Axelrod on by either buying this thing or making everyone think he’s buying this thing until the price moves LOL. 

(Source: New York Post) 

The reality though, is Wendy’s needs it. The damsel in distress saw same-store sales in the U.S. crater -11% last quarter. For context, a year ago that number was +4.1%. Woof. All this while Ronald and the Gang (McDonalds) are printing with value meal plays and Taco Bell is innovating menus and stealing share. 

Which brings us to the main question of the story, what’s Peltz actually seeing here? Probably the same thing every activist investor sees in a bloodied fast food chain…  a brand that's way more valuable than its operations suggest, sitting at a price where the math starts working for a take-private or a strategic flip. Wendy's has brand recognition. It has the real estate footprint. What it doesn't have is momentum, and that's exactly the kind of problem a guy like Peltz thinks he can fix with some financial witchcraft and some operational tough love. 

(Source: Giphy) 

Of course, Wendy’s board put out the usual boilerplate (read: review any proposal in line with fiduciary duties), but if I were a betting man (which I’m not), I’d say they’re easier than they’re letting on. Regardless though, whether Peltz actually pulls the trigger this time or if this is another 2022 situation where he circles the drive-thru and leaves without ordering is anyones guess. 

Either way, the stock needed something. You don't drop 11% in same-store sales and just “where’s the beef?” your way through it. Sometimes you need a billionaire activist investor to file a 13D and remind the market you exist. Until next time, friends… 

At the time of publishing, Stocks.News holds positions in McDonalds as mentioned in the article.