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

An activist hedge fund may soon place the largest order in Papa John’s Int’l, Inc. 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. 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 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

PZZA Logo
PZZAPapa John's International Inc
$49.711.24%

Stock Score Locked: Want to See it?

Benzinga Rankings give you vital metrics on any stock – anytime.

Reveal Full Score
Edge Rankings
Momentum
71.53
Growth
46.09
Quality
Not Available
Value
30.83
Price Trend
Short
Medium
Long
Market News and Data brought to you by Benzinga APIs

Comments
Loading...