Peltz’s investment firm, Trian Fund Management, is putting together a group of investors that could make an offer within the coming weeks. Trian is already Wendy’s largest shareholder, owning about 16% of the company.
The potential deal comes after Wendy’s struggled with falling sales and higher food and labor costs. Its shares have dropped about 24% over the past year, and Peltz has argued that the company is undervalued. News of the possible takeover sent Wendy’s shares jumping about 12%.
Peltz has been involved with Wendy’s for more than two decades. His family also has a minority stake in a business that owns 87 Wendy’s restaurants around New York, while his son Bradley sits on Wendy’s board.
Wendy’s is currently worth about $1.6 billion on the stock market, with an enterprise value of roughly $3.9 billion.