Wendy’s board of directors unanimously rejected an unsolicited $1.4 billion buyout offer on Thursday from a group of investors led by activist investor Nelson Peltz and his hedge fund, Trian Fund Management, along with another group of investment firms.
The board stated that the proposal substantially undervalues the burger chain's prospects and long-term earnings potential. According to the company, the bid was too low and failed to reflect the potential gains expected from the chain's current turnaround strategy.
Instead of being taken private, the struggling burger chain is backing its own turnaround bid. The board expressed confidence in the CEO as they move forward with their internal strategy.