Nelson Peltz speaks at the Delivering Alpha 2019 conference in New York on September 19, 2019.
Adam Jeffrey | CNBC
Nelson Peltz steps down as chairman Wendy'sending a 17-year reign at the fast-food chain.
Wendy's said Friday the change took effect immediately.
Peltz’s exit comes at a time when lower-income consumers are eating out less, hurting Wendy’s sales. The burger chain’s shares have fallen more than 12% this year, reducing its market value to $3.45 billion. Earlier this year, PepsiCo Veteran Kirk Tanner took over as CEO and laid out plans to invest millions of dollars in mobile app updates and advertising to boost business.
“In our view, (Peltz’s departure) opens the door to a new chapter under new president Art Winkle Black and new CEO Kirk Tanner,” TD Cowan analyst Andrew Charles wrote in a note to clients Monday. However, he maintained a “hold” rating on the stock, citing its lack of diversification compared to other restaurant peers.
Peltz will serve as chairman emeritus. He will step down to devote more time to his other board commitments and future Trian Partners activities, Wendy’s said.
Peltz and Trian Fund Management jointly own a 15% stake in Wendy's. Trian Fund Management first invested in Wendy's in 2005, when the fund was created. With Peltz's departure, the firm retains two seats on the fast-food company's board of directors.
Trian said it was considering acquiring Wendy's in 2022, but later decided not to do so.
Winkle Black, who previously served as CFO of H.J. Heinz, is non-executive chairman of the Wendy's board of directors. Winkle Black has been a member of the board of directors since 2016.
Clarification: This story has been updated to include Trian and Peltz's shared ownership stake.
