The chain's stock jumped more than 14% on Aug. 12, 2026, after the Financial Times reported that Nelson Peltz's investment firm, Trian Fund Management, is working on a bid to buy out the company's public shareholders and take the chain private. The surge was strong enough to trigger a brief trading suspension.
Prior to this news, the chain's shares had gained about 4% for the year as of that session's close.
Trian is no stranger to the company. Peltz led an activist campaign at the chain more than two decades ago, buying a stake and pushing for changes. He spent 17 years on the company's board. In 2024, the company gave him the honorary title of chairman emeritus.
The firm already owns a significant stake. A February regulatory filing showed Trian owns 7.85% of the company, while Peltz holds a 16.24% interest. The filing described the stock as undervalued.
This is not the first time Trian has looked at taking the chain private. In 2022, the firm said it was considering that move but later decided against it.
Now, with old allies still in place, the effort carries more weight. Peter May, a Trian executive, and Bradley Peltz, Nelson Peltz's son, both sit on the company's board.
According to the Financial Times report, the bid has support from several other investors, including BlueFive Capital and Flynn Group, a major franchisee of the chain.
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The company responded by saying it would carefully review any Trian proposal in keeping with its fiduciary duties, meaning its legal obligation to act in shareholders' interests. The company also said its board and management regularly review strategy and opportunities to maximize shareholder value.
Peltz's representatives did not immediately reply to CNBC's request for comment.
The chain has been struggling. Days before the Financial Times report, the company posted a sixth straight quarter with falling sales at established locations. That means fewer customers are spending at restaurants that have been open for a while, a key measure of a chain's health.
The focus on value has hurt, as consumers watch prices more closely and the chain has had trouble pulling them in. A rotating lineup of top executives over three years has left its turnaround strategy unfocused.
The competition has also moved ahead. Burger King, part of Restaurant Brands International (QSR), has moved past the chain to become the second-largest U.S. burger chain by total sales across company-owned and franchise locations.
That backdrop helps explain why a buyout could make sense. New CEO Bob Wright, who previously ran Potbelly and took it through a deal to become private, has set key priorities for improving performance and turning the business around.
The stock's jump is a reminder that buyout talk can move a stock fast, but it is also a reminder that a deal is not done until it is done. Trian walked away from the same idea in 2022.
For investors, the big question is whether a bid actually lands and at what price.
The board's history with Peltz means this is not a hostile stranger showing up, since Peltz was part of the company for years.
Still, the chain's problems are real. The chain has also lost its place as the second-largest burger chain. A takeover could give the company time and cover to fix those issues, but it could also leave shareholders waiting through a long process.
Either way, this story is worth watching because it touches on the oldest theme in investing: someone thinking a business is worth more than the market is paying. When a firm that already owns 7.85% of a company says the stock is undervalued, it usually means more action is coming.
What happens next will say a lot about how the chain can turn things around and what your portfolio might be worth if it does.
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