Nelson Peltz speaks at the 2019 Delivering Alpha conference in New York City on September 19, 2019.
Adam Jeffery | CNBC
Nelson Peltz resigns as chairman Wendy’sending the fast-food chain’s 17-year reign.
Wendy’s said Friday the change is effective immediately.
Pelz’s exit comes as low-income consumers dine out less, causing Wendy’s sales to plummet. Shares of the burger chain have fallen more than 12% this year, taking its market value to $3.45 billion. Earlier this year, Pepsi Veteran Kirk Tanner takes over as CEO and has laid out plans to invest millions of dollars in updating its mobile apps and advertising to boost business.
“We believe (Peltz’s departure) is a good candidate for new chairman Art Winkleblack and new CEO Kirk Tanner,” TD Cowen analyst Andrew Charles wrote in a note to clients on Monday. Tanner’s leadership, he nonetheless maintained a “hold” rating on the stock, citing the stock’s lack of diversification compared to other restaurant peers.
Peltz will serve as honorary chair. He will step down from his role to devote more time to other board commitments and future activities at Trian Partners, according to Wendy’s.
Peltz’s Trian Fund Management holds a 10% stake in Wendy’s, making it the company’s second-largest shareholder after Vanguard. Trian first invested in Wendy’s in 2005, when the fund was established. With Peltz’s departure, the company has two board seats at the fast-food company.
Trian said it was considering acquiring Wendy’s in 2022 but later decided against it.
Winkleblack formerly served as chief financial officer of HJ Heinz and currently serves as non-executive chairman of the Wendy’s board of directors. Winkleblack has served as a director since 2016.
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