With rumors swirling that activist investor Nelson Peltz's Trian Fund Management is putting together resources necessary to take Wendy's Co. (NASDAQ: WEN) private, investors are bracing for a fast food shake-up that rivals any seen in recent years. As of mid-August, no formal offer has been submitted, but even the possibility of a takeover has sent WEN shares surging about 15% in just five days, to a level just shy of July's year-to-date (YTD) high.
The positive price movement is welcome for Wendy's shareholders after a troubled stretch that has been characterized by declining same-store sales, crumbling guidance, and a reduced dividend. But the potential impact of Wendy's going private is not just on the company itself, but also on competitors like Dine Brands Global Inc. (NYSE: DIN) and Jack in the Box (NASDAQ: JACK), which could benefit from a changed fast-food landscape or even become takeover targets themselves.
