CNBC reported Wednesday that a consortium led by Trian Fund Management offered Wendy’s shareholders $7.35 per share in cash, a 20% premium to Tuesday’s close, in a proposal to take the chain private.
Shares rose about 15% in premarket trading Wednesday after the proposal emerged. EconoTimes had reported the stock’s premarket move earlier that day.
Wendy’s CEO Bob Wright joined the chain in May after leading Potbelly. On an August analyst call, Wright said the chain’s value pitch lacked clarity, restaurant execution was inconsistent and it relied on too many one-off promotions, CNBC reported.
Even after Wednesday’s gain, Wendy’s shares were down about 65% over the preceding two years, CNBC reported. The company has recorded same-store sales declines for six consecutive quarters, the outlet said. CNBC linked the restaurant industry’s discounting push to diners cutting back on restaurant spending.
The proposed buyer group also includes BlueFive Capital, Sixth Street Partners and Flynn Group, one of Wendy’s largest franchisees, CNBC reported. Wendy’s did not immediately respond to CNBC’s request for comment, while Trian declined to comment beyond the filing, according to the outlet.
