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Wendy's released WendyQuest on Nov. 4, a free retro-style role-playing game available on iOS, Android and Steam where its mascot fights fry-themed enemies. Players who complete in-game regions earn codes redeemable for free menu items like fries, but the promotion is limited to US residents aged 18 and over who sign up for a Wendy's account and requires a purchase to redeem.
Wendy's independent directors unanimously rejected a $1.4 billion buyout offer from activist investor Nelson Peltz, saying it undervalues the company. The board also adopted a one-year shareholder rights plan that triggers discounted stock purchases for other shareholders if any party's stake hits 15%; Peltz's Trian Fund Management already owns 16.3% of shares.
Nelson Peltz's Trian Fund Management, along with BlueFive Capital, Sixth Street Partners and franchisee Flynn Group, has proposed buying Wendy's for $7.35 per share in cash, a deal valued around $1.4 billion and roughly 20% above the prior stock price. Wendy's shares jumped about 15% on the news. Trian and related entities already hold about 16% of Wendy's stock, and Peltz's son Bradley serves on the company's board.
Meritage Hospitality, one of Wendy's largest franchise operators, said Friday it could shut as many as 60 additional restaurants as part of its Chapter 11 bankruptcy proceedings. The company has already closed more than 90 Wendy's locations this year.
Wendy's announced that starting Oct. 19, participating U.S. locations will offer the Dave's Single combo meal—a quarter-pound burger, small fries and small drink—for $7.99 for a limited time. The promotion follows CEO Bob Wright's five-point turnaround plan addressing quality, value, operations, store upgrades and marketing, after the chain fell to third place among U.S. burger chains.
Meritage Hospitality Group, one of Wendy's largest franchisees, shut down 13 additional restaurant locations over the weekend. The closures bring the total number of shuttered Wendy's locations tied to the company to more than 30 since it filed for Chapter 11 bankruptcy protection last month.
A large Wendy's franchisee going through bankruptcy proceedings plans to shutter 10 additional restaurant locations this weekend. Wendy's corporate has objected to the specific stores chosen for closure and attempted to intervene in the legal process, but the closures appear set to proceed regardless.
Meritage Hospitality Group, one of Wendy's largest franchisees, closed another round of restaurants on Friday, marking the second consecutive weekend of permanent shutdowns. The closures follow the company's Chapter 11 bankruptcy filing as it works to restructure its operations.
Reuters reports that McDonald's has used an AI pricing tool since 2019 that analyzes transaction data from nearly 14,000 restaurants plus competitor pricing, such as Wendy's online menus, to recommend menu prices based on local customers' willingness to pay. Franchise owners told Reuters the system has produced price gaps of over 20% between nearby stores, and that the company calls franchisees to question deviations from recommended prices, despite stating that following the algorithm is optional.
A large Wendy's franchisee that filed for Chapter 11 bankruptcy protection earlier this month has disclosed in new court filings that it could close as many as 30 restaurants in the coming weeks. Five specific locations slated for closure have already been identified as part of a cash collateral agreement tied to the bankruptcy proceedings.
Meritage Hospitality Group, which runs 314 Wendy's locations across 15 states, filed for Chapter 11 bankruptcy protection. Wendy's franchising arm, Quality Is Our Recipe LLC, is listed as its largest unsecured creditor, owed roughly $24.9 million in deferred franchise fees. Meritage says it will continue operating its restaurants, including its Bojangles and independent locations, during restructuring.
A major Wendy's franchisee operating 314 restaurants has filed for Chapter 11 bankruptcy protection, citing what it called sustained system-wide headwinds alongside broader struggles facing the parent company. The filing marks a significant setback for Wendy's, which has already been dealing with declining sales and a contracting store count.