Wendys

Wendy's said it is rejecting a $1.4 billion cash takeover proposal led by Nelson Peltz's Trian, saying the $7.35-per-share bid substantially undervalues the company and ignores potential gains from its turnaround plan. The board's independent committee backed CEO Bob Wright and implemented a one-year shareholder rights plan after the investor group declined a proposed standstill agreement. Wendy's reported a seventh consecutive quarterly same-store sales decline but beat Wall Street's earnings and revenue expectations. » More on cnbc.com

The investment firm Trian, led by Nelson Peltz, submitted a non-binding offer of $7.35 per share, valuing Wendy’s at about $1.4 billion and pursuing a delisting transaction. The offer is above the current price but would only become binding after negotiations and approval by the board. Operational problems — such as store closures, pressure on franchisees and weak analyst ratings — make the deal and the outlook for investors uncertain. » More on finanzen.net

Meritage Hospitality Group, one of Wendy's largest U.S. franchisees, filed for Chapter 11 bankruptcy protection and said it will keep restaurants operating during restructuring. The company operates 314 Wendy's across 15 states and cited system-wide pressures from six straight quarters of same-store sales declines at Wendy's, rising beef costs and heavier discounting. Meritage estimated assets and liabilities between $10 million and $50 million, and listed Wendy's franchise business as its top unsecured creditor with a $24.9 million claim. » More on cnbc.com