Wendy’s shares jumped more than 14% Wednesday after noted investor Nelson Peltz made an offer to buy the chain, which has been struggling with high beef prices and aging stores.

Peltz’s Trian Fund Management and several partners are offering Wendy’s $7.35 per share in cash, or a premium of nearly 19% over the stock’s closing price on Tuesday, in a deal that would take the company private.

Wendy’s, which is based in Dublin, Ohio, confirmed receipt of the unsolicited proposal in a statement Wednesday and said its board has formed an independent committee to evaluate it. At the end of last year, Wendy’s had 5,969 restaurants in the U.S. and 1,428 outlets in 38 countries.

Wendy’s, founded in 1969 by Dave Thomas and named after his daughter, is known for its square burgers and Frosty desserts. The fast-growing chain introduced the drive-thru window in 1970 and went public in 1976. In the 1980s, as it jockeyed for sales with McDonald’s and Burger King, Wendy’s launched salad bars and ran its iconic “Where’s the beef?” ad campaign.

But as the fast-food market grew even more competitive and rival burger-focused chains like In-N-Out and Five Guys expanded, Wendy’s fell behind. Wendy’s share of U.S. burger chain sales fell from 11.5% in 2019 to 10.4% last year, according to Technomic, a market research company.

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[–] 94 points 1 week ago (3 children)

I'm sure a hedge fund won't cut quality, gut the business, then ultimately declare bankruptcy while laying everyone off or anything...

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  • [–] 1 point 1 week ago (2 children)

    Brand is already dying anyways. I'm not sure what their place is in the current world; they don't have the same kid appeal as McD or BK. They used to market the burgers but there's newer chains with better fast food burgers now. I guess they're still notable for chili and frosties? I don't have high hopes for a hedge fund turning things around, but I think they do need to overhaul their image and find something to market that other fast food doesn't do better.

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  • [–] 3 points 1 week ago

    I personally prefer Wendy's but I'm not really the consumer democratic that generates much profit. I don't really eat much fast food but when I do maybe once every few months, I prefer Wendy's. I have completely written off McDonald's except for their sausage egg McMuffin... It's my guilty pleasure that I have manbe once every 3-6 months.

    It's not really a health thing for me, it's just the cost of fast food is so stupid high that I'd rather spend an extra $10 and get good takeout or go to an actual restaurant...

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  • [–] 23 points 1 week ago (1 child)

    You mean to say that all the savings from their AI drive-through agents hasn’t helped???

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  • [–] 20 points 1 week ago (4 children)

    I had no idea public opinion had turned on Wendy's. I had always considered them a superior fast food burger and I look forward to whenever they add the pretzel bun to the menu.

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  • [–] 2 points 1 week ago

    Wendy’s used to be a comfort food for me, and now I don’t even go. They were fine until they started messing with the fries, but they also started trying too hard with limited time products and the new frosty things.

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  • [–] 15 points 1 week ago (2 children)

    Wendy's lost me when they stopped giving a tiny cup of melted cheese for your fries upon request. Last time I went, they wanted 75¢ for a half filled ketchup cup of cheese. Nickel and dimed themselves to death.

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  • [–] 6 points 1 week ago* (1 child)

    Fucking Taco Bell is pulling that shit too. Some locations charge for onions now and although it's a better formula than the old Verde sauce, it's bullshit that it's now 20-25¢ per packet. I like to use 2-3 sauces per item, so it gets pricy quick. At least the hot sauces are still free...for now...

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  • [–] 64 points 1 week ago* (last edited 1 week ago) (15 children)

    Wendy’s died with Dave Thomas.

    I used to frequent a Wendy’s near where I worked at the time. Everything still looked and tasted exactly like it did in the 1980s.

    I went there again a week after Dave Thomas died and everything was different. The meat was smaller and tasted different, the fries were overcooked. It was obvious what changed and why.

    On the wall next to the registers was a giant poster memorializing Dave and talking about how they would always do things “Dave’s way.” I never went back.

    …There is an exception to this. Wendy’s tried a long time ago to open restaurants in Japan and failed. But several years ago they did it again, this time partnering with another existing fast food restaurant called First Kitchen. The participating locations have the genuine Wendy’s logo next to theirs and a lot of the classic menu items including the shakes.

    It doesn’t taste like classic Wendy’s, but it tastes way better than what I remember from the last time I ate a Wendy’s in America.

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  • [–] 28 points 1 week ago (8 children)

    Are you American?

    Wendy’s is pretty damn good in Canada. Similar tier as A&W, and a clear step above McDonald’s and Burger King

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  • [–] 16 points 1 week ago (1 child)

    Good to hear. I’ve never been in Canada for longer than an afternoon, so I wouldn’t have known. I imagine that, like Japan, the locations there are owned by a local company rather than Wendy’s proper.

    Are you American?

    I was born there, but I got better.

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  • [–] 9 points 1 week ago (1 child)

    Right? And as fast food in general has gone up, the price disadvantage has really dwindled imo. $5 more over $5 is a 100% increase. But when McD's sits at $15 and Wendy's is still only $5 more...

    Not that I go to either anymore because they're American and I'm a combatant in a trade war, but the theory was sound. The only Canadian I'm betraying is Galen FUCKING Weston who is philosophically American.

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  • [–] 7 points 1 week ago

    I was on voice chat with an American a awhile back. and I was talking about getting some A&W. He lost his mind. He only thought it was the pop basically. I guess they didnt have any near him. Then I had to tell him that the ones we have and the he has are different. Still gets alittle argo if I bring it up.

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  • [–] 14 points 1 week ago (1 child)

    Overseas versions of domestic chains often seem to be better, presumably because people there wouldn't put up with substandard fare or to make market entry easier.

    KFC in Asia is pretty good. Pizza Hut locations are actually a decent dining experience as well.

    An exception to this would be the Tim Hortons stores they tried to open in Korea. Just as meh as here - maybe with less hobo BO in the corner table - and you could get better, fresher options within a block for the same price or better.

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  • [–] 1 point 1 week ago

    Wendy's locations are a TON of variability. Within the same town you can find a Wendy's that is stellar and a Wendy's that sucks to the point that it barely makes sense that they are the same restaurant chain. You're right about the serving sizes and such going down. I am sure they'd have been forced to do that eventually if Dave was still around, but he would have likely pushed back hard to prevent it as much as he could.

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  • I was just in Japan and tried Wendy's there and had what was the most disgusting burger I've ever eaten in my life (the truffle and mozzarella baconator). Not only could I or anyone else in my group eat more than a few bites, but it also made me nauseous and vomit a few hours later when we got back to our AirBnB.

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  • [–] 26 points 1 week ago (2 children)

    Trian Fund Managment (Trian Partners) is an “activist investor.” Expect them to disassemble Wendy’s.

    IOW, prepare to say goodbye to Wendy’s as we know it.

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  • [–] 12 points 1 week ago

    Wendy's isn't a "rival" of Five Guys or In-n-Out. That's like calling The Lexington Legends "rivals" of The San Diego Padres, and New York Yankees. The latter are playing in a different league.

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  • [–] 10 points 1 week ago (7 children)

    Wendys went downhill hard in recent years. I used to love their hamburgers more than any other nationwide chain. Now I order a burger from them and it's dry as fuck and flavorless. And it's more expensive than a competitor. It got to the point that McDs was even a better option because of the consistency.

    Their fries are also unforgivably terrible. Soggy, undercooked, and flaccid piles of starch with potato skin tips that taste like burnt paper.

    Really a shame because I grew up going to Wendy's and had a fond view of the place. The only thing left that is any good is the frosty.

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  • [–] 3 points 1 week ago (5 children)

    Recent years? I don't think they have been any good since the late 80's. Maybe as late as the mid nineties. After that: garbageville. That continued the decline.

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  • [–] 2 points 1 week ago (3 children)

    Hmm I find things were pretty good up until around the early years of the 2000s. Once the 2010s rolled around, absolute shit. It may also be that I exposed myself to better burger chains around this time, though, and I simply didn't know better.

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  • [–] 4 points 1 week ago (1 child)

    I am going to go with at least post 2002 as the beginning of the end. After Dave Thomas died. I could imagine various franchises had different levels of effort.

    I didn't eat fast food much, but I had a friend who came to America in the mid 80's and raved about Wendy's. I would get dragged along sometimes. They said their experience was very downhill post Dave's passing.

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  • [–] 3 points 1 week ago

    Yeah one thing Wendys has a problem with is consistency. You go to just about any McDonalds and you don't expect exceptional food, but it's consistently close to the same quality no matter which location you go to, in my experience. A Big Mac in Kansas tastes about the same as a Big Mac in Florida.

    Wendys has some WILD ass swings in quality, depending on location. Some locations would have fresh, crisp fries and good burgers and some you swore was on the warmer for 3 hours and put together by someone who was drunk. Unfortunately, as time has gone on, there is less of the former and more of the latter.

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  • [–] 2 points 1 week ago

    thier burgers downsized. had wendies for the first time in early 2000s, definitely a more "restuarant experience. now its just a mcdonalds clone. people i know still buy from there occasionaly, usually they buy coffee too.

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  • [–] 9 points 1 week ago (7 children)

    Around here Wendy's went the way of Burger King, terribly managed, full of uncaring workers.

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  • [–] 3 points 1 week ago (5 children)

    When was the last time you saw a fast food worker give a shit? I'd assume plenty of them or foreign workers who can't get a real job with whatever actual qualifications they have...I wouldn't care either

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  • [–] 1 point 1 week ago (4 children)

    Preparing food for people is an important job, if I was going to do it I would do it right.

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  • [–] 2 points 1 week ago (2 children)

    That attitude starts at the top. As a younger man I worked at a regional chain (Taco Time) at one of their company-owned locations. It rocked. Competitive pay, respectful leadership, a commitment to cleanliness and quality, we even collaborated with the test kitchen to refine new products (I gave feedback on the habanero hot sauce that made it to menu). I felt appreciated and fairly treated so I happily stood behind the product.

    Then I moved and got hired on at a franchise. It was night-and-day. The owner was a cheapskate who wouldn't replace anything until it was beyond broken, and even then it was usually the manager who went to the cash & carry for stuff. Knives never sharp enough, everything worn and stained, infrequent portion and procedure testing, ingredients kept around just a little too long. The manager was big on being liked but not actually good at handling people and hired a string of frankly terrible candidates (one of which physically threatened me for correcting him during training). Standards slip. I regret not simply walking out the day they yelled at me in front of a customer but the shift lead was actually cool and I didn't want to inconvenience her too terribly, so I quit the next day.

    I boycotted that location until everyone I recognized was gone and it seems to be a little better now. The food tastes fresher at least.

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  • [–] 1 point 1 week ago*

    BK was the worst inner city,the employees dont know how to do the orders properly, so they made a customer pissed off enough to be belligerent towards them. surprise they closed down shortly before/early covid. carls jr is still here, and jollibee just had a new opening. and in a mall, several new chains not native our area just opened up shop, so more variety now. for a long time it was mostly mcdonalds only.

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  • [–] 9 points 1 week ago (1 child)

    Its not the high beef prices or aging stores, its just low quality control.

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  • [–] 4 points 1 week ago*

    plus customers are turning to (even if they are paying more) better quality chains that is still fast food, and or becoming health consciouss, plus people are ordering from delivery too. plus all the boba/milk tea shops that has opened up. which was the crazy in 2000s but died down in 2010s, then came back recently.

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  • [–] 9 points 1 week ago

    The very last time I ate at a Wendy's, the burger I got was literally full of hair, like dragged across a dirty floor. I immediately complained and sent pics to their complaint department. It took them two months to respond, telling me I'd be contacted by the owner of the restaurant. It took him another month to respond, saying he'd like to meet me in person to apologize. Three months to get a reply... I told him I had no intention of meeting with him, I did not accept his apology, and I would never eat at a Wendy's again. Moreover, I put the pics up on the review page for their location. They shut down a few months later.

    Wendy's can get fucked.

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  • [–] 17 points 1 week ago

    Oh how the turntables...

    None

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  • [–] 7 points 1 week ago (7 children)

    Restaurant chains that don't farm and ranch their own ingredients should consider saying bye bye. Especially national and international chains.

    Bye bye McDonald's - you overpriced undersized hamburglers.

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  • [–] 1 point 1 week ago (4 children)

    Restaurant chains that don’t farm and ranch their own ingredients should consider saying bye bye. Especially national and international chains.

    I don't think there's a single chain restaurant that is this vertically integrated. The farm-to-table shtick doesn't scale well to "a hundred thousand acres of wheat for buns". It works for bougie seasonal-produce, rotating-menu type places that can afford to be open 12 hours a week, 12 weeks a year.

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  • [–] 1 point 1 week ago (3 children)

    You do realize that just McDonald's has a 14 billion dollar a year food bill, yes? And that's just one of them. Are we saying we cannot afford to grow our own wheat, ranch our own animals, and grow our own produce for less than that? Or will we just continue fucking the customer with higher prices as if our buying power is useless?

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  • [–] 2 points 1 week ago (2 children)

    If a company like McDonald's thought it was worth all that they'd already be doing it.

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  • [–] 1 point 6 days ago

    Not if all re-investment money is being paid to top management and shareholders, money that includes all soon to be jobless employees. McDonald's could not only secure its own product line - from egg to tomato, and provide a shitload of jobs all the way through their system, and pretty much control their competitiveness from seed to turd. A win/win for humanity at the expense greed - the rich demand to get richer.

    My opinion is ;; that.

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  • [–] 7 points 1 week ago

    Til there are Wendy's outside of the US.

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  • [–] 7 points 1 week ago

    Introducing the Never Frozen vegetable protein with a side of beef burgers!

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  • [–] 7 points 1 week ago

    They owned Tim Hortons once upon a time.

    They were crashing and burning since 2002 anyways, just shoot it and put it out of its misery.

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  • [–] 6 points 1 week ago

    Wendy's accused of cutting beef with plant-based material, health markers improved, people enraged and ready to slam!

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  • Bun, mayo, toppings, burger, bun

    Fries and shake combo for 20 dollars

    Fast food sucks.

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  • [–] 6 points 1 week ago (1 child)

    Fuck Wendy’s. Their quality and service went to shit years ago. BK is better now.

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  • [–] 10 points 1 week ago (1 child)

    Begun, the franchise wars has.

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  • [–] 5 points 1 week ago

    While dropping from 11.5 to 10.4 % is definitely the wrong way to go, 10.4% in a crowded field doesn't seem that bad. There is a lot of competition with McDonalds only having a 15.4% if the LLM is to be trusted.

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  • [–] 4 points 1 week ago* (3 children)

    If beef prices come back down, it's a good time to buy a dip.

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  • [–] 8 points 1 week ago (1 child)

    When do prices ever come back down? They learned people will pay scam prices so they will keep scamming regardless of what the beef market does.

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  • [–] 2 points 1 week ago

    theres other no-traditional chains that popped here when there wasnt in our state. mcdonalds, BK, wendys is falling the wayside. seen a new jollibee opened up

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  • If Tasty Burger took over Wendy's the world would be a better place.

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  • [–] 2 points 1 week ago

    If they didn’t have frosties I wouldn’t ever do there. As it is we go around 3 times a year.

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  • [–] 2 points 1 week ago

    Sir, this is a Lemmy.

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  • [–] 1 point 1 week ago

    I hope Beef prices go to $1000 a pound so that we can end that horror show of torture on cows and the planet. Wendys be damned!

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