Investing.com -- Nelson Peltz’s Trian Fund Management is nearing a formal take-private bid for Wendy’s, assembling a consortium that could include Abu Dhabi-based BlueFive Capital and Flynn Group, one of the burger chain’s largest franchisees, the Financial Times reported Wednesday.

Wendy’s (NASDAQ: WEN) shares rose 12% following the report. The company is the direct subject of the potential transaction. Trian holds a combined stake exceeding 24% in the company — a 16% personal position held by Peltz plus a 7.9% fund stake — meaning any formal offer would trigger a mandatory SEC regulatory filing that would set an independent director review process in motion.

The consortium could submit its bid within the coming weeks, though the FT cautioned that the timeline may shift or the offer may not materialise. Wendy’s told the FT it "would thoroughly review any proposal submitted by Trian consistent with its fiduciary duties," adding that "the board, together with the management team, regularly reviews the company’s strategic priorities and opportunities with the goal of maximising value for all shareholders." Once a formal offer lands, Wendy’s independent directors would decide whether to negotiate directly with Trian or run a broader auction.

Peltz has history with the brand that dates back two decades. He first acquired a Wendy’s stake in 2005 and later orchestrated the Tim Hortons spinoff and a $2.34 billion acquisition of the enterprise in 2008. His current campaign has been building since at least February 2026, when Trian filed with regulators that Wendy’s was "undervalued" and disclosed it was reaching out to potential co-investors about strategic options, including a go-private transaction.

The two new consortium names add meaningful dimensions to a potential deal structure. BlueFive Capital, an Abu Dhabi-based firm known for backing Bugatti, would bring sovereign-adjacent Middle East capital. Flynn Group, the world’s largest franchise operator with more than 2,600 restaurants including over 300 Wendy’s locations across eight U.S. states, would offer operational credibility and franchisee alignment that could smooth the transition from public to private ownership. Flynn Group has not publicly confirmed its involvement, and BlueFive’s precise ownership structure and assets under management have not been disclosed.

The timing of Peltz’s move is not coincidental. Wendy’s reported a punishing second quarter on August 7, withdrawing its full-year outlook and cutting its quarterly dividend in half, from $0.14 to $0.07 per share. U.S. same-restaurant sales fell 7.0% year over year in Q2, worse than the 4.7% decline analysts had expected, as customer traffic declined and franchisee profitability weakened. CEO Bob Wright, who returned to lead the company, acknowledged the shortfall directly, telling investors on August 7: "Wendy’s is an iconic brand with exceptional assets. Today we are clearly not performing at our potential."

The deteriorating fundamentals have compressed Wendy’s valuation, potentially making the arithmetic of a take-private more attractive to Peltz at this juncture. No offer price or valuation range has been disclosed.