BusinessFriday, November 6
Wendy's rejects a $1.4 billion buyout offer and adopts a poison pill
The CBUStoday team
Wendy's isn't selling, at least not at that price. The Dublin-based chain rejected a $1.4 billion offer from activist investor Nelson Peltz's Trian Fund Management and its partners, saying the bid “substantially undervalues” the company. The group had offered $7.35 per share in cash on Oct. 28. Wendy's board also adopted a “poison pill” plan meant to make a hostile takeover harder.
Trian's group holds more of Wendy's than the poison pill's trigger
16.3%Share of Wendy's held by Trian and its partners
Sources: WOUB Public Media, NBC4 WCMH-TV, The Columbus Dispatch
View as table
| Value | |
|---|---|
| Share of Wendy's held by Trian and its partners | 16.3% |
| Poison pill trigger | 15.0% |
CEO Bob Wright, who joined in May, said the turnaround plan, Dave's Way, is already producing good results. Wendy's has been closing restaurants, with up to 358 planned for 2026. Shares were up about 1% at $7.75 Thursday.
- Poison pill: lasts one year, triggers at 15% ownership
- Third quarter: U.S. same-store sales fell 5.7%
- Third quarter: adjusted earnings of 13 cents per share beat estimates
Wendy's share of U.S. burger chain sales slipped
Source: WOUB Public Media
View as table
| Value | |
|---|---|
| 2019 | 11.5% |
| Last year | 10.4% |
Sources: WOUB Public Media, NBC4 WCMH-TV, The Columbus Dispatch