Wendy’s (WEN) Stock Falls 14% After Trian Fund Drops Takeover Plans
TLDR
- Wendy’s stock fell more than 14% in after-hours trading after Reuters reported Trian Fund Management has no current plans to bid for the company.
- Trian, which owns roughly 16% of Wendy’s, had been reported to be assembling a consortium to take Wendy’s private.
- The takeover speculation had pushed WEN to a nine-month high, with the stock rising 14.7% on August 12 when the deal rumor first surfaced.
- Wendy’s U.S. same-restaurant sales fell 7% in Q2, and the company withdrew its full-year outlook and cut its dividend.
- CEO Bob Wright, in the job since May, has laid out a five-part turnaround plan after admitting the chain sacrificed food quality to cut costs.
Wendy’s stock dropped more than 14% in after-hours trading on Wednesday after Reuters reported that Nelson Peltz’s Trian Fund Management has no current plans to make a take-private bid for the burger chain.
The stock had been trading near a nine-month high heading into Wednesday’s close, with a market value of around $1.7 billion. That rally was almost entirely built on takeover hopes.
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