Why Wendy’s is losing the burger wars—and is now a takeover target for Nelson Peltz
Source: Fortune ·
Its new CEO says Wendy's has let quality slip and now it has fallen behind Burger King to No. 3 in the burger wars.
From the source
In the burger wars currently raging in the United States, there is one clear loser among the major chains: Wendy’s. Its fortunes have declined so much that it’s now the target of Nelson Peltz’s Trian Fund Management, which is offering to take the restaurant private for $1.4 billion, a sum that’s not even 1% of McDonald’s market value. The restaurant chain, once beloved for its “fresh, never frozen” beef and reputation for being a higher-quality fast-food option, has been struggling for 18 months. Its promotions have fallen flat, intense competition has stolen customers, and a revolving door in the corner office has deprived it of the focus needed to get out of its rut. Long the second-largest U.S. burger chain behind McDonald’s, Wendy’s has slipped to third place behind a resurgent Burger King. In May, Wendy’s overhauled its management, hiring Potbelly’s turnaround veteran Bob Wright as its fourth CEO in three years, as well as Potbelly’s finance chief Steve Cirulis as CFO, in an…