Trian Fund suggests The Wendy’s Company to buyback shares and declare dividends

Market Cap: $4.9 billion | The Wendy’s Company is the parent company of its wholly owned subsidiary holding company Wendy’s Restaurants, LLC. Wendy’s is primarily engaged in the business of operating, developing and franchising a system of distinctive quick-service restaurants serving food.

On May 24, 2022, Trian Fund (19.4%) advised the Board that it intends to explore and evaluate the possibility of participating, alone or with third parties, in a potential transaction with respect to the Company to enhance shareholder value. Such a potential transaction could include an acquisition, business combination (such as a merger, consolidation, tender offer or similar transaction) or other transaction that would result in the acquisition of control of the Company. Trian Fund is led by founders Nelson Peltz, Peter May and Ed Garden. Mr. Peltz is chairman of Wendy’s board and Mr. May is vice chairman. Source

On January 12, 2023, Trian Fund (19.4%) advised the Board that while they have determined not to propose such a transaction with respect to the Company at this time, they believed that in light of the Company’s current business momentum and strong liquidity position, returning additional capital to shareholders through additional stock repurchases and increased cash dividends was the appropriate path to enhance shareholder value at this time. Source