Nelson Peltz's Trian offered $7.35 a share to take Wendy's private, and the stock jumped 15% on a busy day for movers
A group led by Trian, which already owns about 16.3% of Wendy's, proposed a $1.4 billion cash deal. Vertiv rallied on a raised forecast, while F5 and Enphase fell hard after their outlooks disappointed.
Photo: Engin Akyurt / Pexels
The indexes barely moved on Fed day, but several single stocks did. The biggest name among them was a fast-food chain whose largest shareholder now wants to own all of it.
Trian's offer for Wendy's
Investment funds managed by Trian Fund Management and related parties own about 16.3% of Wendy's, according to the group's letter to the board filed with the SEC on Wednesday. Together with Flynn Group, one of Wendy's largest franchisees, plus BlueFive Capital and Sixth Street Partners, Trian proposed acquiring every share it does not already own for $7.35 in cash.
The group said the price is an approximate 20% premium to Tuesday's close. CNBC put the value of the offer at $1.4 billion. The Wall Street Journal first reported the proposal, CNBC said.
Wendy's shares closed up 15.15% at $7.07, from $6.14 on Tuesday, according to Yahoo Finance data. That leaves the stock about 4% below the offer price, by our calculation, a gap that reflects the chance the deal does not happen on these terms.
Wendy's confirmed it received the "unsolicited, non-binding proposal." The company said its board had already formed a committee of independent directors, not affiliated with the investor group, after a Trian filing in February. That committee will evaluate the offer with its financial and legal advisers.
"There can be no assurance that the Company will pursue this transaction or other strategic outcome, or that any definitive agreement will be approved or consummated." - The Wendy's Company, in its Oct. 28 statement
The backdrop is a slump in the restaurants themselves. The burger chain has posted same-store sales declines for six consecutive quarters, CNBC reported. Wendy's said it does not plan to disclose further developments unless and until it decides disclosure is appropriate, and that shareholders do not need to take any action now.
Vertiv rallies on a higher forecast
Vertiv, which makes power and cooling equipment for data centers, closed up 16.48% at $242.94, according to Yahoo Finance data. The company raised its forecast for the year, StockTitan reported, citing Reuters. Vertiv was the largest company by stock market value on StockTitan's afternoon movers board.
The move came on the same day investors were waiting on Microsoft and Alphabet, two of the largest buyers of data-center capacity.
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F5 and Enphase fall hard
F5 had the worst day among the larger names. The cybersecurity and networking company closed down 20.43% at $365.53, according to Yahoo Finance data. Its guidance for fiscal 2027 calls for adjusted earnings of $18 to $18.30 a share, against a FactSet consensus of $18.03, and Piper Sandler downgraded the stock to neutral from overweight, CNBC reported.
Enphase Energy fell 16.03% to $24.99. Its quarterly revenue dropped to $293.3 million from $410.4 million a year earlier, CNBC reported, and the company forecast lower fourth-quarter sales. Enphase named higher interest rates as a headwind for U.S. home solar, StockTitan noted, a day before the Fed's decision.
Deals and guidance raises
Deal news drove some of the largest percentage moves. Ultralife more than doubled, up about 145% at midday, after EnerSys agreed to buy the battery maker for $16 a share in cash, valuing it at about $320 million, CNBC reported.
Several companies rose after lifting forecasts, according to CNBC's midday report. Chili's owner Brinker International traded about 15% higher after raising its full-year adjusted earnings guidance to $13.30 to $13.90 a share. Wingstop jumped about 15% after third-quarter earnings topped estimates, even though revenue fell short. Labcorp gained about 10% on a guidance raise, and GE HealthCare rose about 8%. Those figures are midday moves, not closing prices.
On the downside, CoStar lost about 13% at midday after its full-year revenue guidance failed to impress, CNBC said.
What carries into Thursday
The Wendy's committee now has to decide how to respond, and Trian's letter is a non-binding starting point. For the broader market, Thursday's session opens with the reaction to Alphabet's and Microsoft's results and the September personal consumption expenditures inflation data.
