Nelson Peltz-led group offers $1.4 billion to take Wendy’s private

Nelson Peltz’s investment group offered $1.4 billion to buy Wendy’s and take the U.S. burger chain private.

The offer is $7.35 a share in cash, nearly 19% above Wendy’s closing share price on Tuesday.

Peltz’s Trian Fund Management already holds a 16.3% stake in the company.

Wendy’s is struggling with rising costs and tougher burger competition, while lower-income customers are under pressure.

Its share of U.S. burger-chain sales fell to 10.4% last year from 11.5% in 2019, and the company has been closing restaurants.

The group says a turnaround may work better away from public markets, where a company’s shares are traded openly.

Wendy’s board is expected to assess the proposal, and the two sides have agreed to keep certain information confidential.

The bid’s outcome is not yet known, and Wendy’s is due to report quarterly results next week.