Trian - A Major Wendy's Stakeholder - Now Eyes Papa John's


27% profits every 20 days?

This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.


An activist hedge fund may soon place the largest order in Papa John’s Int’l, Inc. (NASDAQ:PZZA) history.

What Happened

Trian Fund Management LP is exploring a buyout bid for the world’s third-largest pizza chain, according to The Wall Street Journal. The prospective buyer is reportedly one of many, including other companies and private-equity firms.

Why It’s Important

The beleaguered Papa John’s is working to move past a public dispute with founder John Schnatter, who owns nearly 30 percent of shares and occupies a board set.

Trian could help.

Before Domino’s Pizza, Inc. (NYSE:DPZ)’s turnaround, the hedge fund briefly got involved as the largest shareholder and a strategic adviser. Domino’s trades up 1,102 percent since Trian’s intervention.

Its record isn’t perfect, though.

Before Domino’s, Trian bought Wendys Co (NASDAQ:WEN) and merged it with Arby’s — an ultimately failed venture that quickly ended in an Arby’s sale.

Trian’s intention for Papa John’s, in the event of a sale, remains unclear. However, it may involve a fast-food marriage. Trian co-founder Nelson Peltz is the chairman of Wendy’s and orchestrated a meeting this summer to discuss the possibility of a merger. Trian owns a 13-percent stake in Wendy’s with three board seats.

What’s Next

Papa John’s expects a first round of bids by the end of October.

At time of publication, Papa John's shares were set to open up more than 6 percent at $53.80.

Related Links:

Papa John's Founder Resigns Following Backlash Of His Racial Slur

Stifel Upgrades Embattled Papa John's On Lowered Expectations


27% profits every 20 days?

This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.


ENTER TO WIN $500 IN STOCK OR CRYPTO

Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!

Posted In: NewsRumorsRestaurantsM&AMediaGeneralJohn SchnatterNelson PeltzTrian Fund ManagementWall Street Journal