Nelson Peltz’s activist firm Trian Fund Management is looking for investor backing for a bid to take Wendy’s private, the Financial Times reported, citing people familiar with the matter.

Wendy’s stock surged 14.5% to $7.74 in morning trading Tuesday. The fast-food chain had a market capitalization of around $1.3 billion as of Monday’s close of trading.

Trian and Wendy’s didn’t immediately respond to Barron’s requests for comment.

Peltz, who stepped down as chairman of the Wendy’s board in 2024, owns around 16% of the company’s shares as of March 23, according to regulatory filings. His Trian co-founder, Peter May, also owns 16%, while Trian itself owns 8%.

In a regulatory filing in February, Peltz indicated that Trian was evaluating ways to unlock value from Wendy’s, which has struggled with softer traffic and tight profit margins. Shares have plummeted 71% from an all-time closing high of $28.87 on June 8, 2021.