Wendy's on Thursday said that it is rejecting a $1.4 billion takeover offer from a group of investors led by Nelson Peltz's Trian Fund Management.
The group offered $7.35 per share in cash on Oct. 28 to take the struggling burger chain private. In addition to Trian, it included investment firms BlueFive Capital and Sixth Street Partners, plus Flynn Group, one of Wendy's largest franchisees.
In February, Wendy's board formed a committee of independent directors to assess any potential bid from Trian in response to a regulatory filing from the firm. The committee found that the proposal "substantially undervalues" Wendy's and does not reflect potential gains from the chain's ongoing turnaround strategy, the company said in a press release on Thursday.
Trian declined to comment on Wendy's decision.
The company also reported its third-quarter results on Thursday. Its same-stores declined for the seventh straight quarter. However, its quarterly earnings and revenue topped Wall Street's expectations.
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