Wendy’s Holder Trian Drops Takeover Push as Sales Beat Estimates

(Bloomberg) — Wendy’s Co.’s largest shareholder, Trian Fund Management LP, said it won’t pursue a deal for the company after signs that the business is improving.

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Trian said in a filing that it informed Wendy’s board on Thursday that it wouldn’t propose a transaction at this time. The firm believes in the future of Wendy’s and is “confident in the company’s growth plans.” Trian, led by Nelson Peltz and Peter May, owns more than 19% of the fast-food chain’s shares.

The company’s preliminary sales for the fourth-quarter exceeded analyst expectations. Wendy’s also announced Friday that it is doubling its quarterly dividend to 25 cents and has authorized a new $500 million share-buyback plan.

The Dublin, Ohio-based company saw shares rise as high as 6.5% after Trian stated that it was looking into a possible transaction.

Earlier this week, Peltz’s fight to get on the board of Walt Disney Co. spilled into the open.

Separately, Wendy’s said Friday that Leigh Burnside, who serves as US chief financial officer and chief accounting officer, will depart on Jan. 20. Kurt Kane also leaves the company, following a restructuring that saw the chief commercial officer role eliminated.

As a result of the organizational changes, Wendy’s expects it will be able to keep general and administration expenses flat over the next two years despite inflationary pressures.

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