Wendy’s shares jumped more than 14% Wednesday after noted investor Nelson Peltz made an offer to buy the chain, which has been struggling with high beef prices and aging stores.
Peltz’s Trian Fund Management and several partners are offering Wendy’s $7.35 per share in cash, or a premium of nearly 19% over the stock’s closing price on Tuesday, in a deal that would take the company private.
Wendy’s, which is based in Dublin, Ohio, confirmed receipt of the unsolicited proposal in a statement Wednesday and said its board has formed an independent committee to evaluate it. At the end of last year, Wendy’s had 5,969 restaurants in the U.S. and 1,428 outlets in 38 countries.
Wendy’s, founded in 1969 by Dave Thomas and named after his daughter, is known for its square burgers and Frosty desserts. The fast-growing chain introduced the drive-thru window in 1970 and went public in 1976. In the 1980s, as it jockeyed for sales with McDonald’s and Burger King, Wendy’s launched salad bars and ran its iconic “Where’s the beef?” ad campaign.
But as the fast-food market grew even more competitive and rival burger-focused chains like In-N-Out and Five Guys expanded, Wendy’s fell behind. Wendy’s share of U.S. burger chain sales fell from 11.5% in 2019 to 10.4% last year, according to Technomic, a market research company.
Wendy’s died with Dave Thomas.
I used to frequent a Wendy’s near where I worked at the time. Everything still looked and tasted exactly like it did in the 1980s.
I went there again a week after Dave Thomas died and everything was different. The meat was smaller and tasted different, the fries were overcooked. It was obvious what changed and why.
On the wall next to the registers was a giant poster memorializing Dave and talking about how they would always do things “Dave’s way.” I never went back.
…There is an exception to this. Wendy’s tried a long time ago to open restaurants in Japan and failed. But several years ago they did it again, this time partnering with another existing fast food restaurant called First Kitchen. The participating locations have the genuine Wendy’s logo next to theirs and a lot of the classic menu items including the shakes.
It doesn’t taste like classic Wendy’s, but it tastes way better than what I remember from the last time I ate a Wendy’s in America.
All of them went down in quality, I feel like Wendy’s is still one of the best, even with the downgrades.
Are you American?
Wendy’s is pretty damn good in Canada. Similar tier as A&W, and a clear step above McDonald’s and Burger King
Good to hear. I’ve never been in Canada for longer than an afternoon, so I wouldn’t have known. I imagine that, like Japan, the locations there are owned by a local company rather than Wendy’s proper.
Are you American?
I was born there, but I got better.
I’m so upset there are no A&Ws near me. The food is pretty good (imo on par with Sonic, which has always been consistently good for me), and the drinks are pretty tasty too. Plus the A&W root beer is amazing.
Sonic has the worst burgers in fast food.
Right? And as fast food in general has gone up, the price disadvantage has really dwindled imo. $5 more over $5 is a 100% increase. But when McD’s sits at $15 and Wendy’s is still only $5 more…
Not that I go to either anymore because they’re American and I’m a combatant in a trade war, but the theory was sound. The only Canadian I’m betraying is Galen FUCKING Weston who is philosophically American.
Oh absolutely this too. At this point I think Wendy’s is even cheaper. 12.79 for Big Mac combo, vs 8.99 for Dave single combo (it’s a special, but regular price is 11.09).
I was on voice chat with an American a awhile back. and I was talking about getting some A&W. He lost his mind. He only thought it was the pop basically. I guess they didnt have any near him. Then I had to tell him that the ones we have and the he has are different. Still gets alittle argo if I bring it up.
You mean to say that all the savings from their AI drive-through agents hasn’t helped???
Wendy’s lost me when they stopped giving a tiny cup of melted cheese for your fries upon request. Last time I went, they wanted 75¢ for a half filled ketchup cup of cheese. Nickel and dimed themselves to death.
If beef prices come back down, it’s a good time to buy a dip.
Oh how the turntables…
