00:00Back in June, we told you how Reddit was trying to save Wendy's.
00:03That rescue didn't end up working out.
00:05But we're learning this week that Wendy's largest shareholder wants to buy the whole company and take it off the
00:11stock market for good.
00:12Here's what's happening.
00:13When we reported this back in June, we talked about how a post in the subreddit WallStreetBets called
00:18We Need to Save Wendy's Before It's Too Late sent the stock price up 42% in one day.
00:23According to Yahoo Finance, that rally was already betting on a buyout from Nelson Peltz, who chaired Wendy's for 17
00:30years.
00:31He is still the largest shareholder, and his firm, TryAn, still has two seats on the board.
00:36Now, Peltz isn't the reason people are talking about this story.
00:38It's the food.
00:39If you think Wendy's food isn't what it used to be, apparently you're right.
00:43As CNBC reports, CEO Bob Wright admitted the brand's quality has eroded and said the company hasn't consistently delivered what
00:51customers expect.
00:52That's not some comment on Reddit.
00:54That's the guy who's running the company.
00:56An analysis from Forbes suggests that moments like this, when a struggling stock scares off public investors, are often when
01:02people like Peltz get more interested.
01:04His investment firm, TryAn, is now assembling a group to buy Wendy's outright.
01:09There's no formal bid yet, but Wendy's says it will review any offer, and a deal could come within weeks.
01:14But this isn't a guarantee of success.
01:16Private equity doesn't always fix things.
01:18CNBC reports that 10 of the 21 restaurant chains that went bankrupt in 2024 were private equity-backed, but it
01:25could give the CEO more room to make changes without having to report to Wall Street.
01:30So, what do you think?
01:31Will this fix Wendy's food, or is private equity just here for a payday?
01:35Let us know in the comments.
01:36this isn't cheap today. Let us
01:36know. Let us
01:36to keep this kids coming in. Let us
