By Basant El-Faramawy
Wendy's has rejected a $1.4 billion buyout offer from activist investor Nelson Peltz and adopted a "poison pill" plan to fend off a hostile takeover.
The fast-food chain said Thursday that the offer substantially undervalues the company. A committee of independent directors unanimously rejected the bid.
Peltz, whose Trian Fund Management holds 16.3% of Wendy's shares, made the offer last week, arguing that the fast-food landscape has become increasingly challenging.
CEO Bob Wright, who joined in May, told investors the company has a turnaround plan already producing good results. Wendy's reported better-than-expected third-quarter performance, and shares rose more than 2% on Thursday.
Poison pill details
The poison pill triggers if a person or group acquires 15% or more of shares, granting other shareholders the right to purchase discounted shares. The plan will remain in place for one year.
Store closures and franchisee issues
Wendy's has been closing outdated U.S. restaurants, shutting 240 locations in 2024 and planning up to 358 closures in 2026. In September, a major franchisee, Meritage Hospitality Group, filed for bankruptcy after Wendy's sought to terminate its agreement.
As of the end of 2025, Wendy's operated 5,969 U.S. restaurants and 1,428 outlets in 38 countries. Founded in 1969 by Dave Thomas, the chain is known for square burgers and Frosty desserts.
