Nelson Peltz speaks at the 2019 Delivering Alpha conference in New York on September 19, 2019.
Adam Jeffery | CNBC
Nelson Peltz steps down as chairman of Wendy'sending a 17-year reign at the fast food chain.
Wendy's announced Friday that the change is effective immediately.
Peltz's exit comes as low-income consumers are eating out less often, which is hurting Wendy's sales. Shares of the burger chain have fallen more than 12% this year, shrinking its market value to $3.45 billion. Earlier this year, PepsiCo veteran Kirk Tanner took over as CEO and announced plans to invest millions of dollars in mobile app updates and advertising to boost the business.
“In our opinion, [Peltz’s departure] opens the door for a new chapter under new Chairman Art Winkleblack and new CEO Kirk Tanner,” TD Cowen analyst Andrew Charles wrote in a note to clients Monday. Still, he maintained a “hold” rating on the stock, citing its lack of diversification compared to other restaurant peers.
Peltz will assume the title of chairman emeritus, stepping down to devote more time to his other board commitments and the future activities of Trian Partners, Wendy's said.
Peltz's Trian Fund Management owns 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 founded. With Peltz's departure, the firm has two board seats at the fast-food company.
Trian said it explored a takeover of Wendy's in 2022 but later decided against it.
Winkleblack, who previously served as CFO at HJ Heinz, is now non-executive chairman of Wendy's board. Winkleblack has been a director since 2016.
