How Nelson Peltz Is Pulling Off Another Solid Win for Wendy's

Services

Published: August 16, 2018 10:05 am

Last Updated: January 11, 2020 7:18 pm

Wendy’s Co. (NASDAQ: WEN) shares saw a handy gain on Thursday after the company announced that it accepted an offer to sell its 12.3% ownership interest in Inspire Brands back to that company for $450 million. This is a solid win for Nelson Peltz and Wendy’s in general.

Note that the agreement was approved by the Wendy’s board of directors and represents a 38% premium on Wendy’s previous valuation of the investment. Inspire Brands owns Arby’s, Buffalo Wild Wings and R Taco.

Wendy’s intends to use the proceeds from this transaction to invest in brand growth and increase the company’s share repurchase program.

The board of directors has authorized a new share repurchase program for up to $100 million of the common stock through December 27, 2019. This is in addition to the current $175 million share repurchase authorization, expiring March 3, 2019, which had $93.1 million remaining as of August 1, 2018.

Nelson Peltz, Wendy’s board chair, commented:

The sale of our stake in Inspire Brands for $450 million is a great return on this investment for our shareholders. Over the past seven years, Wendy’s and its shareholders have benefitted from more than $100 million in distributions and the monetization of this investment carries a 38 percent premium over its most recent valuation.

Shares of Wendy’s were last seen up about 3.6% at $18.53, with a consensus analyst price target of $19.47 and a 52-week range of $13.57 to $18.55.

24/7 Wall St.
4 Safe Dividend Stocks to Buy If You Fear a Big Correction Is Coming

100 Million Americans Are Missing This Crucial Retirement Tool

The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.

Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.

A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.

Click here to learn how to get a quote in just a few minutes.