After months of declines, shares of Wendy's (WEN +1.63%) were rebounding in a big way on Wednesday. The cause: Longtime investor Nelson Peltz said he may soon push for changes at the slumping fast-food giant -- the kinds of changes that could drive the stock higher.
It's already working, at least for the moment. As of 1:00 p.m. ET, Wendy's shares were up about 16.8% from Tuesday's closing price.
Wendy's shares have been slumping for months. A major investor said Wednesday that he's tired of that trend. Image source: The Wendy's Company.
A prominent investor isn't happy with Wendy's share price
Peltz's hedge fund firm, Trian Asset Management, said in an SEC filing that the firm has spoken with "potential financing sources, potential co-investors and certain potential strategic partners" about possible transactions that "may benefit the company's shareholders."
Trian has retained advisors to "explore various plans and actions and propose potential transactions," it said in the filing, submitted on Wednesday morning. The firm has been a Wendy's shareholder for years and currently holds about 16% of the company.
Could this reverse Wendy's months-long stock decline?
Wendy's, like other fast-food and fast-casual chains, has struggled since the beginning of the COVID-19 pandemic, as foot traffic has dropped amid a surge in people working from home.
NASDAQ: WEN
Key Data Points
But Wendy's troubles have accelerated in recent months: Even with Wednesday's gains, shares are down nearly 42% over the past year. While its fourth-quarter earnings beat estimates, its 2026 profit guidance fell well short of Wall Street's expectations.
That in turn led to a wave of analyst price target cuts that hit shares hard on Tuesday. Today's price action suggests that long-suffering investors in the burger giant are eager to see what kind of catalyst Peltz and his team can come up with. We may find out soon.
