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.

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[–] 94 points 4 days ago (3 children)

I'm sure a hedge fund won't cut quality, gut the business, then ultimately declare bankruptcy while laying everyone off or anything...

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    [–] 20 points 3 days ago (4 children)

    I had no idea public opinion had turned on Wendy's. I had always considered them a superior fast food burger and I look forward to whenever they add the pretzel bun to the menu.

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  • [–] 2 points 3 days ago

    Wendy’s used to be a comfort food for me, and now I don’t even go. They were fine until they started messing with the fries, but they also started trying too hard with limited time products and the new frosty things.

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    [–] 64 points 4 days ago* (last edited 4 days ago) (15 children)

    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.

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  • [–] 27 points 4 days ago (8 children)

    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

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  • [–] 8 points 4 days ago (1 child)

    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.

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  • [–] 7 points 4 days ago

    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.

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  • [–] 14 points 4 days ago (1 child)

    Overseas versions of domestic chains often seem to be better, presumably because people there wouldn't put up with substandard fare or to make market entry easier.

    KFC in Asia is pretty good. Pizza Hut locations are actually a decent dining experience as well.

    An exception to this would be the Tim Hortons stores they tried to open in Korea. Just as meh as here - maybe with less hobo BO in the corner table - and you could get better, fresher options within a block for the same price or better.

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    [–] 11 points 3 days ago

    Wendy's isn't a "rival" of Five Guys or In-n-Out. That's like calling The Lexington Legends "rivals" of The San Diego Padres, and New York Yankees. The latter are playing in a different league.

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  • [–] 28 points 4 days ago (2 children)

    Trian Fund Managment (Trian Partners) is an “activist investor.” Expect them to disassemble Wendy’s.

    IOW, prepare to say goodbye to Wendy’s as we know it.

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    [–] 6 points 3 days ago (1 child)

    Fuck Wendy’s. Their quality and service went to shit years ago. BK is better now.

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  • Bun, mayo, toppings, burger, bun

    Fries and shake combo for 20 dollars

    Fast food sucks.

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  • [–] 24 points 4 days ago (1 child)

    You mean to say that all the savings from their AI drive-through agents hasn’t helped???

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  • [–] 5 points 3 days ago

    While dropping from 11.5 to 10.4 % is definitely the wrong way to go, 10.4% in a crowded field doesn't seem that bad. There is a lot of competition with McDonalds only having a 15.4% if the LLM is to be trusted.

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  • [–] 7 points 3 days ago

    Til there are Wendy's outside of the US.

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  • [–] 17 points 4 days ago

    Oh how the turntables...

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  • [–] 9 points 3 days ago

    The very last time I ate at a Wendy's, the burger I got was literally full of hair, like dragged across a dirty floor. I immediately complained and sent pics to their complaint department. It took them two months to respond, telling me I'd be contacted by the owner of the restaurant. It took him another month to respond, saying he'd like to meet me in person to apologize. Three months to get a reply... I told him I had no intention of meeting with him, I did not accept his apology, and I would never eat at a Wendy's again. Moreover, I put the pics up on the review page for their location. They shut down a few months later.

    Wendy's can get fucked.

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  • [–] 5 points 3 days ago

    Wendy's accused of cutting beef with plant-based material, health markers improved, people enraged and ready to slam!

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  • [–] 14 points 4 days ago (2 children)

    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.

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  • [–] 6 points 4 days ago* (1 child)

    Fucking Taco Bell is pulling that shit too. Some locations charge for onions now and although it's a better formula than the old Verde sauce, it's bullshit that it's now 20-25¢ per packet. I like to use 2-3 sauces per item, so it gets pricy quick. At least the hot sauces are still free...for now...

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  • [–] 9 points 3 days ago (1 child)

    Its not the high beef prices or aging stores, its just low quality control.

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  • [–] 4 points 3 days ago*

    plus customers are turning to (even if they are paying more) better quality chains that is still fast food, and or becoming health consciouss, plus people are ordering from delivery too. plus all the boba/milk tea shops that has opened up. which was the crazy in 2000s but died down in 2010s, then came back recently.

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  • [–] 10 points 4 days ago (7 children)

    Wendys went downhill hard in recent years. I used to love their hamburgers more than any other nationwide chain. Now I order a burger from them and it's dry as fuck and flavorless. And it's more expensive than a competitor. It got to the point that McDs was even a better option because of the consistency.

    Their fries are also unforgivably terrible. Soggy, undercooked, and flaccid piles of starch with potato skin tips that taste like burnt paper.

    Really a shame because I grew up going to Wendy's and had a fond view of the place. The only thing left that is any good is the frosty.

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    [–] 9 points 3 days ago (7 children)

    Around here Wendy's went the way of Burger King, terribly managed, full of uncaring workers.

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    [–] 9 points 4 days ago (1 child)

    Begun, the franchise wars has.

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  • [–] 7 points 3 days ago

    They owned Tim Hortons once upon a time.

    They were crashing and burning since 2002 anyways, just shoot it and put it out of its misery.

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  • [–] 7 points 3 days ago

    Introducing the Never Frozen vegetable protein with a side of beef burgers!

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  • [–] 8 points 4 days ago (6 children)

    Restaurant chains that don't farm and ranch their own ingredients should consider saying bye bye. Especially national and international chains.

    Bye bye McDonald's - you overpriced undersized hamburglers.

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    [–] 1 point 2 days ago

    I hope Beef prices go to $1000 a pound so that we can end that horror show of torture on cows and the planet. Wendys be damned!

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  • [–] 2 points 3 days ago

    Sir, this is a Lemmy.

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