Fast-food giant Wendy’s has been offered $1.4 billion to go private by a group led by Trian Fund Management, the investment firm of billionaire Nelson Peltz.

Trian already owns 16.3 per cent of The Wendy’s Company, and it has offered $7.35 per share for all outstanding common stock. The bid was submitted alongside Flynn Group LP, Blue Five Capital and Sixth Street Partners.

“Wendy’s sits at a critical juncture,” the offer said. “The external environment has become increasingly challenging given the significant pressures on the US consumer, economic uncertainty, persistent commodity inflation and intensifying competition, particularly within the QSR burger category.

“The business requires significant capital investment to de-lever and execute the strategic initiatives needed to turn system performance around.”

The investors added that they believe shareholders would remain exposed to market volatility if they chose not to cash in on their shares now. 

“We believe private ownership is the better path and provides the patient, long-duration capital needed to restore the business and the franchise system to a position of strength,” they added.

“Wendy’s customers will benefit from sustained reinvestment in the overall guest experience; franchisees and team members from stability and consistent capital support; and the brand itself from dedicated stewards who can help unlock its full potential.”

Wendy’s said that an independent committee will review the proposal, in consultation with its financial and legal advisors. It gave no guarantee that the company will pursue the deal or any other outcome.

Shareholders were advised not to take any action.