DUBLIN, Ohio: Wendy's has received a $1.4 billion offer to go private from a group led by billionaire Nelson Peltz, who argues the struggling fast-food chain needs patient capital and a turnaround away from the public markets.

Peltz's Trian Fund Management, a longtime Wendy's shareholder that owns a 16.3% stake along with related parties, is leading the group offering $7.35 per share in cash, according to a regulatory filing.

The offer represents a roughly 20% premium to Wendy's closing share price on Tuesday. The company's shares jumped 15% to $7.10 following news of the bid.

"We believe private ownership is the better path and provides the patient, long-duration capital needed to restore the business and the franchise system to a position of strength," the investor group wrote to the company's board.

Trian is working with restaurant operator Flynn Group and investment firms BlueFive Capital and Sixth Street Partners on the offer.

Flynn operates more than 340 Wendy's restaurants and is one of the chain's largest U.S. franchisees, as well as its master franchisee in Australia and New Zealand.

Trian said Wendy's was at a "critical juncture", pointing to pressure on U.S. consumers, economic uncertainty, persistent commodity inflation and growing competition in the fast-food burger market.

Wendy's has struggled with weakening sales as cost-conscious consumers cut back on dining out. The company withdrew its annual forecasts in August and CEO Bob Wright said at the time, "we are not performing in our potential".

"The business requires significant capital investment to de-lever and execute the strategic initiatives needed to turn system performance around," Peltz and Flynn Group's CEO Greg Flynn said in a letter to Wendy's.

Wendy's had roughly $2.4 billion of net debt as of June 28.

Trian declined to comment beyond the filing, while Wendy's did not respond to a request for comment.

"A take-private makes sense as Wendy's turnaround is likely to be prolonged given the challenged state of the lower-income consumer and soft state of the quick-service burger category," TD Cowen analysts said.

Earlier this year, it had been reported that Trian and a consortium of investors were preparing a bid to take Wendy's private. Reuters later reported that Trian had no immediate plans to make an offer and had concerns about Wendy's performance, including its share price, valuation multiples and strategic direction.

Wednesday's offer was first reported by the Wall Street Journal.

Trian and Wendy's have had a nearly two-decade relationship. Trian co-founder Peter May has served on Wendy's board for 18 years, while Bradley Peltz, one of Nelson Peltz's sons, joined the nine-person board last year. Nelson Peltz and another son, Matthew, previously held board seats.

Trian also considered taking Wendy's private in 2022 before backing away from those plans in 2023.

In February, Peltz said Wendy's stock was undervalued and that Trian had spoken with potential financing sources about deals, including an acquisition or other major transactions.

Wendy's shares are down about 26% so far this year.