Why Wendy's Long-Slumping Stock Rebounded in a Big Way on Wednesday
Key Points
Hedge-fund titan Nelson Peltz said his firm is looking for ways to boost Wendy's share price.
Peltz's firm, Trian Asset Management, made the disclosure in an SEC filing early Wednesday.
- 10 stocks we like better than Wendy's ›
After months of declines, shares of Wendy's (NASDAQ: WEN) were rebounding in a big way on Wednesday. The cause: Longtime investor Nelson Peltz said he may soon push for changes at the slumping fast-food giant -- the kinds of changes that could drive the stock higher.
It's already working, at least for the moment. As of 1:00 p.m. ET, Wendy's shares were up about 16.8% from Tuesday's closing price.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Wendy's shares have been slumping for months. A major investor said Wednesday that he's tired of that trend. Image source: The Wendy's Company.
A prominent investor isn't happy with Wendy's share price
Peltz's hedge fund firm, Trian Asset Management, said in an SEC filing that the firm has spoken with "potential financing sources, potential co-investors and certain potential strategic partners" about possible transactions that "may benefit the company's shareholders."
Trian has retained advisors to "explore various plans and actions and propose potential transactions," it said in the filing, submitted on Wednesday morning. The firm has been a Wendy's shareholder for years and currently holds about 16% of the company.
Could this reverse Wendy's months-long stock decline?
Wendy's, like other fast-food and fast-casual chains, has struggled since the beginning of the COVID-19 pandemic, as foot traffic has dropped amid a surge in people working from home.
But Wendy's troubles have accelerated in recent months: Even with Wednesday's gains, shares are down nearly 42% over the past year. While its fourth-quarter earnings beat estimates, its 2026 profit guidance fell well short of Wall Street's expectations.
That in turn led to a wave of analyst price target cuts that hit shares hard on Tuesday. Today's price action suggests that long-suffering investors in the burger giant are eager to see what kind of catalyst Peltz and his team can come up with. We may find out soon.
Should you buy stock in Wendy's right now?
Before you buy stock in Wendy's, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Wendy's wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $415,256!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,133,904!*
Now, it’s worth noting Stock Advisor’s total average return is 889% — a market-crushing outperformance compared to 193% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of February 18, 2026.
John Rosevear has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Recommended Articles
