Wendy's shares fell 13.3% in after-hours trading Wednesday following a Reuters report that Nelson Peltz's Trian Fund Management has no plans to make a take-private bid for the company at this time. Trian has concerns about Wendy's performance, including its recent trading price and valuation multiples, as well as its current strategic direction, but the fund is keeping an open mind about future intentions, according to the report. By pulling back on a possible takeover offer, Trian could give new Wendy's CEO Bob Wright more time to execute a turnaround plan to address declining sales. Earlier this week, The Wall Street Journal reported that Wright has been telling franchisees and investors that the company had sacrificed quality for cost savings, and that he is rolling out a five-point strategy to address food quality, value, operations, store upgrades, marketing and digital sales. Wendy's shares had surged nearly 20% since the August 12 report that Trian was preparing a take-private offer.
The Wendy’s CoTrian reportedly won't bid, removing takeover premium
