According to recent news reports, Trian Fund Management LP, the largest shareholder of Wendy’s, has opted to place “strategic alternatives” on hold. The company will now explore potential transactions, either negotiating a loan or to consider arrangements with third parties, that may include an acquisition or merger.
Chief Executive, Todd Penegor, noted that the company intends to integrate U. S. and global operations and will shelve the project to introduce “go only” locations. Wendy’s will continue to expand with a conventional restaurant format.
In a January 13th release the Company announced a preliminary unaudited operating profit of $84 million on revenue of $537 for Q4 of the 2022 Fiscal Year. Comparable values for Q4 FY 2021 were an operating profit of $77 million on revenue of $473 million. Final results for Q4 and FY 2022 will be released on March 1st.
The Company stated in their release “Wendy’s intends to embark on a broader redesign of its organizational structure. This will be made in an effort to better support the execution of the Company's long-term growth strategy by maximizing organizational efficiency and streamlining decisions. As a result of the redesign, the Company anticipates that 2023 General and Administrative expenses will be relatively flat versus 2022, despite elevated inflationary pressures. The Company remains committed to driving accelerated growth across its three strategic pillars of building its breakfast day-part, accelerating its digital business, and growing its global footprint”.
Nelson Peltz, an activist investor and CEO of Trian Fund Management, stated that the Allocation-Strategy would support long-term growth.