Trian Abandons Plans to Take Wendy's Private

Wendy's (WEN) stock plummeted over 14% in after-hours trading on Wednesday, wiping out most of its recent gains. The decline came after Reuters reported that Trian Fund Management, a longtime investor holding roughly 16% of the company, has no current plans to bid for Wendy's.

The takeover speculation had pushed WEN stock to a nine-month high in early August, with the shares rising 14.7% on August 12 when the deal rumor first surfaced.

However, beneath the surface, Wendy's underlying numbers look rough. U.S. same-restaurant sales fell 7% in Q2, while international same-restaurant sales dropped 2.3%. Revenue rose only 1.7% to $570.6 million, but adjusted earnings fell to 18 cents a share, down from 29 cents a year earlier.

CEO Bob Wright has outlined a five-part plan targeting food quality, value, marketing, restaurant operations, digital engagement, and unit growth in an effort to turn the company around.