Wendy’s Shares Rocket Higher As Shareholders Contemplate Making a Deal

May 25, 2022 By MarketDepth

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Wendy’s (NASDAQ: WEN) shares skyrocketed nearly 15% during after-hours trading Tuesday, following a filling which revealed that its largest shareholder, Trian Partners, is contemplating a deal with the company. Trian and its partners own a 19.4% stake in the fast-food company and are now exploring a deal 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 by the Filing Persons …”

Trian said in the filing

Wendy’s disclosed that its board is set to carefully review any proposal” submitted by Trian.

According to Citigroup Inc. analyst Jon Tower, he isn’t surprised that Trian “is making noise,” as the stock has failed to keep up with its peers for years.

“Keep in mind, this is a similar ownership group that acquired the brand in 2008 and has served on the board throughout the company’s history,”

Tower said in a note to clients

Wendy’s shares have tumbled 30% throughout the year and have a current market value of approximately USD3.5 Billion.