Wendy's is staying the course, but a billionaire eyes a possible takeover
The last few years haven't been great for fast-food giant Wendy's, which shared in February that it planned to close 5%-6% of its locations in 2026.
Twenty years ago, the company's stock began to plummet, spending most of 2008 to 2012 in dire straits. Starting in 2013, though, it started a steady climb that lasted until the end of 2021. Since then, the stock has been on its way back down, and on May 5, it hit its lowest price of the year at $6.37.
For most Wendy's investors, that might not necessarily be so bad. Wendy's stock pays a dividend, and a pretty high one at that, with a forward annual rate of 6.91%. The stock might not be doing its best, but if you've been holding the stock for all 20 of those years, you've earned a steady stream of quarterly dividends the whole time.
However, that might all change soon if billionaire Nelson Peltz gets his way.
Wendy's could go private via takeover bid
Billionaire activist investor Nelson Peltz has been weighing his options for responding to the company's decline, according to the Financial Times. Peltz's hedge fund, Trian Fund Management, owns 16% of Wendy's. The fund's February filing called Wendy's "undervalued" and indicated an interest in launching a takeover bid.
If Wendy's goes private - and that is by no means guaranteed - holders of the stock would get a payout, and Trian Fund Management would take control of the company, along with any partners that join in on the takeover.
A takeover wouldn't necessarily mean customers notice any immediate sweeping changes to how Wendy's does business, but it's clear that Peltz believes things could be going better, and it seems as if Wendy's agrees.
Wendy's wants to turn things around with Project Fresh
In October 2025, Wendy's launched Project Fresh, an ongoing effort "to revitalize the brand, reignite growth, accelerate profitability."
Those are all good goals, but despite the name evoking fresh food, they don't necessarily mean that the company's food offerings will improve.
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Instead, Project Fresh focuses on details such as what hours each restaurant operates, ensuring that staff training exemplifies hospitality, and continuing to deliver strong quarterly dividends to investors.
When it unveiled Project Fresh, Wendy's said more details would be coming in its third-quarter earnings results. That earnings report, however, had very little to say about tangible changes being made, beyond reiterating the basic goals of the project.
Other than noting a 6.2% increase in sales, Wendy's fourth-quarter results in February were similarly vague. The first-quarter report for 2026, issued on May 8, barely mentions the project.
Wendy's stock rises on possible takeover news
For Wendy's, small, steady improvements to how the company does business make sense, but these aren't generating any real investor excitement.
What does have people paying attention is the possibility that Peltz's buyout becomes a reality. Following the announcement, the stock price shot up to a high of $8.44, a 32% increase from its recent low.
On May 15, the stock opened at $8.02. While it hasn't continued to climb, it's clear that the idea of going private is pretty enticing to some investors. However, for now, it remains just a possibility.
Related: Wendy's brings back popular burger
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This story was originally published May 16, 2026 at 6:33 AM.