Wendy’s (WEN) stock is surging on reports of a pending takeover bid to take the company private.
Yahoo Finance Senior Reporter Brooke DiPalma outlines the details.
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Wendy’s is reportedly catching the eye of Nelson Peltz’s Trian Fund Management for a takeover bid. Now finance Brooke De Palma joins here to discuss. Right Brooke, what do we know?
Well, this is exactly what we know is that following this bid, we did see a massive jump in Wendy’s share. That stock jumping almost 16 and a half percent. I actually want to pull up Alpha space for this because this momentum today, I put it a comparison chart of Wendy’s where it was today compared to Restaurant Brands International. Of course, that’s behind Burger King, who’s been taking the lead here. And you could see right there, jumping as much as 16 and a half percent, nearly 17% today. That’s Wendy’s, that line right there. And this comes after taking a look over the past five years, you have seen Burger King significantly take market share. So this did not come as a surprise that this company or this this uh management firm is looking to take Wendy’s private. This comes after Wendy’s has reported six straight quarters of declines in their most recent quarter out just last week.
How many? Six?
Six straight quarters. You have this company reporting just last week, down 6.3% for seam store sales growth, yet again. And this is also leading a significant turnaround. On the call, we heard from executives who keep in mind, these are new executives. We have Bob Wright now at the helm, who oversaw Potbelly, which, keep in mind, is now a privately held company. He is going to introduce to investors a turnaround plan in the third quarter call in November. and that certainly has investors optimistic, but at the same time, Potbelly is now a private company. And so this really not coming as too much as surprise and definitely causing some investor optimism here.
Yeah, Pelt has a long history with Wendy’s by the way, it dates back decades, you know?
Yeah. Absolutely. And so this is not something that’s been on it’s been on the back burner so to say for Wendy’s, but especially now in this vulnerable position. We have Burger King overtaking market share from them. I I it seems like that turnaround plan for Burger King worked.
Maybe Nelson just maybe Nelson just loves the chocolate Frosty.
Maybe so.
It’s delicious.
