Nelson Peltz speaking at the Delivering Alpha 2019 conference in New York on September 19, 2019.
Adam Jeffery | CNBC
Nelson Peltz will step down as president of From Wendyending a 17-year reign at the fast food chain.
Wendy's said Friday the change is effective immediately.
Peltz's departure comes at a time when lower-income consumers are eating out less, causing Wendy's sales to plummet. The burger chain's stock has fallen more than 12% this year, bringing its market value down to $3.45 billion. Earlier this year, PepsiCo Veteran Kirk Tanner took over as chief executive and laid out plans to invest millions of dollars in updates to its mobile app and advertising to boost business.
“In our opinion, [Peltz’s departure] “It opens the door to a new chapter under new President Art Winkleblack and new CEO Kirk Tanner,” TD Cowen analyst Andrew Charles wrote in a note to clients Monday. Still, he maintained a “hold” rating on the stock, citing its lack of diversification compared to other similar restaurants.
Peltz will assume the title of chairman emeritus. He will step down to devote more time to his other board commitments and future Trian Partners activities, according to Wendy's.
Peltz's Trian Fund Management has a 10% stake in Wendy's, making it the company's second-largest shareholder behind Vanguard. Trian first invested in Wendy's in 2005, when the fund was created. With Peltz's departure, the firm now has two board seats at the fast-food company.
Trian said it was exploring an acquisition of Wendy's in 2022 but later decided against it.
Winkleblack, who previously served as chief financial officer of HJ Heinz, is now non-executive chairman of Wendy's board. Winkleblack has been a director since 2016.
