Wendy’s Co.’s largest shareholder, Trian Fund Management LP, said it won’t pursue a deal for the company after signs that the business is improving.
(Bloomberg) — Wendy’s Co.’s largest shareholder, Trian Fund Management LP, said it won’t pursue a deal for the company after signs that the business is improving.
Trian said in a filing that it informed Wendy’s board on Thursday that it wouldn’t propose a transaction at this time. The firm believes in the future of Wendy’s and is “confident in the company’s growth plans.” Trian, led by Nelson Peltz and Peter May, owns more than 19% of the fast-food chain’s shares.
The decision comes as preliminary sales for the fourth quarter exceeded analyst estimates. Wendy’s also announced Friday that it is doubling its quarterly dividend to 25 cents and has authorized a new $500 million share-buyback plan.
Shares of the Dublin, Ohio-based company rose as much as 6.5%, their biggest gain since May 25, after Trian said it was exploring a potential transaction.
Earlier this week, Peltz’s fight to get on the board of Walt Disney Co. spilled into the open.
Separately, Wendy’s said Friday that Leigh Burnside, who serves as US chief financial officer and chief accounting officer, will depart on Jan. 20. Kurt Kane is also leaving the company after a reorganization eliminated the role of chief commercial officer.
As a result of the organizational changes, Wendy’s expects it will be able to keep general and administration expenses flat over the next two years despite inflationary pressures.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.