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WASHINGTON (AP) — Wendy's shares rose nearly 5 percent after Trian Fund Management increased its stake in the burger chain.
The 3.7 million share purchase gives Trian, led by activist investor and board member Nelson Peltz, more than 23 percent of Wendy's outstanding stock. As of October, according to the data provider FactSet, Trian had about a 15 percent stake in the company.
In June of last year, Wendy's agreed to repurchase up to $211 million of its stock from board members Peltz, Peter May and Edward Garden, along with investment funds managed by Trian. Trian is controlled by Peltz, May and Garden. The buyback was part of a board authorization to repurchase up to $1.4 billion in stock through the end of 2016.
Shares of Wendy's Co., based in Dublin, Ohio, closed at $13.59, up 60 cents, or 4.6 percent. Earlier the stock traded at $13.64, its highest point in nearly a decade.
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This story has been corrected to show that Wendy's agreed to repurchase up to $211 million, not $1.4 billion, in stock from Trian.
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