# Wendy's rejects buyout offer from former chairman

> Wendy's rejects Nelson Peltz's $1.4 billion buyout offer, opting for CEO-led revitalization plan.
- Title: Wendy's rejects buyout offer from former chairman | Shortify
- Summary: Wendy's rejects Nelson Peltz's $1.4 billion buyout offer, opting for CEO-led revitalization plan.
- Keywords: wendy's, nelson peltz, bob wright, meritage hospitality group, shareholder rights plan, poison pill, dave's way, breakfast strategy, restaurant profitability, franchisee, Nation's Restaurant News
- Source: Nation's Restaurant News — https://nrn.com/quick-service/wendy-s-rejects-a-buyout-offer-from-its-former-chairman
- Read time: 1 min
- Topics: wendy's, nelson peltz, bob wright, meritage hospitality group, shareholder rights plan, poison pill, dave's way, breakfast strategy, restaurant profitability, franchisee, food, business
## Wendy's rejects buyout offer
Wendy's has rejected a buyout offer from Nelson Peltz, its former chairman and largest shareholder.

> Wendy's has rejected a buyout offer from Nelson Peltz.
## Buyout offer details
Peltz offered $7.35 per share, or $1.4 billion, to buy Wendy's from its franchisees.

> Nelson Peltz, Wendy’s largest shareholder who spent 17 years as the company’s chairman until 2024, offered to buy the company for $7.35 per share, or $1.4 billion.
## Board rejects proposal
An independent board committee rejected Peltz's offer, saying it 'substantially undervalues Wendy’s standalone prospects and long-term earnings potential.'

> But an independent committee of Wendy’s board members rejected the proposal, saying that it 'substantially undervalues Wendy’s standalone prospects and long-term earnings potential.'
## Poison pill activated
Wendy's adopted a shareholder rights plan that triggers additional stock if someone buys 15% or more of shares without company approval.

> The company adopted a shareholder rights plan, also known as a poison pill, that gives shareholders additional stock if someone buys 15% or more of Wendy’s shares without company approval.
## New CEO's plan
CEO Bob Wright announced a revitalization plan called 'Dave’s Way' to improve menu, marketing, and digital business.

> Wright, a longtime former Wendy’s executive, was hired earlier this year to turn things around. On Thursday, he announced a revitalization plan called 'Dave’s Way.'
## Breakfast strategy
Breakfast will be optional for franchisees, potentially unlocking $200 million in restaurant-level EBITDA.

> He also said that improvements in breakfast could 'unlock up to $200 million in restaurant-level EBITDA across the system'
## Restaurant acquisitions
Wendy's agreed to buy up to 163 restaurants from Meritage Hospitality Group, a Michigan-based operator filing for bankruptcy.

> The company has agreed to buy up to 163 restaurants from the franchisee Meritage Hospitality Group, unless a better offer comes forward out of bankruptcy court.
## Financial position
Wendy's has $414 million in cash and $174 million in free cash flow to date, supporting the revitalization plan.

> Steve Cirulis, the company’s CFO, said that the company has $414 million in cash and $174 million in free cash flow to date, which should position the company to invest behind the plan.
## Same-store sales decline
Wendy's same-store sales fell 5.7% in the U.S. and 2.2% internationally, continuing a trend of double-digit declines.

> Wendy’s made these announcements on a day in which it said same-store sales fell 5.7% in the U.S., and 2.2% internationally.
## Franchisee engagement
Wright emphasized franchisees' commitment to the Wendy's brand and their role in the company's success.

> Wright told analysts on Thursday that he has been in 'constant contact' with franchisees on the plan. 'I can’t emphasize enough just how important they are to our success.'
## Plan implementation
Wendy's will optimize its restaurant portfolio by transferring underperforming locations to high-performing operators.

> The plan also includes a portfolio optimization. The company will acquire some restaurants and will work to transfer other restaurants to 'well-capitalized, high-performing operators.'
## Key takeaway

Wendy's rejected Nelson Peltz's $7.35 per share buyout offer, choosing CEO Bob Wright's revitalization plan to boost sales and profitability.