By Senad Karaahmetovic

Wendy’s (NASDAQ:) largest shareholder is reportedly exploring options for a takeover or another potential deal for the fast-food chain.

Trian Fund Management, an asset management firm that holds the largest stake in Wendy’s, told the restaurant’s board that it plans to explore potential deal options in an effort to increase shareholder value. The potential deal could be a full sale of Wendy’s, a merger, or another type of transaction that would affect the fast-food restaurant’s management.

Trian Fund Management, which holds a roughly 19.4% stake in the company, is led by founders Peter May, Ed Garden, and Nelson Peltz, who is also a chairman of Wendy’s board of directors.

Wendy’s has been pushing to lure more consumers by opening new locations and adding fresh offerings to its menu such as the new chicken sandwich lineup. After the coronavirus epidemic, the company also launched a brand new breakfast venture in which it invested millions.

This chain continues to struggle with rising costs, just like its competitors, and has seen a slowdown in traffic in the first quarter of this year due in part to lower-income customers. Wendy’s reported poorer sales among households that earn less than $75,000 and has hiked prices in the first quarter. In the second quarter, Wendy’s plans to raise prices again.

Stifel analyst Chris O’Cull thinks the Peltz could indeed acquire Wendy’s as the company has failed to convince investors it “offers a compelling secular growth thesis.”

“The company has executed its breakfast, digital, and international initiatives well. However, the company’s initiatives lack or are not early enough to establish a sustainable growth cycle. Investors look for companies that increase scale and expand meaningfully. Wendy’s competition is larger and spreads rising costs to a growing portfolio of restaurants, thereby improving unit economics. They also achieve higher growth rates. Wendy’s has a premium value. Thus far, Wendy’s has struggled to convince investors it is on that path,” O’Cull said in a note.

KeyBanc analyst Eric Gonzalez added:

“Our guess is that Trian Partners has recognized that Wendy’s three core initiatives: 1) growing the breakfast daypart; 2) accelerating digital adoption; and 3) seeding new unit development, are not being appropriately valued by the public markets. Thus, a go-private transaction where Wendy can reinvest capital as necessary to accelerate growth might be in the best interest of its investors.”

Shares of Wendy’s are up almost 12% in premarket trading Wednesday.