Sale Talk Heats Up Wendy's

Wendy's (WEN) is chewing over the prospect of a company sale.

Shares of the burger chain surged nearly 12% late Wednesday after the company said it is exploring strategic options. It also posted first-quarter results that were above Wall Street's estimates.

Wendy's said it is evaluating moves such as revisions to its strategic plan, changes to its capital structure, a possible sale or a merger. Chairman James Pickett will lead a board committee exploring the various moves.

Wendy's, the No. 3 burger maker behind McDonald's(MCD) and Burger King(BKC), spent much of last year battling declining same-store sales and a proxy fight waged by billionaire investor Nelson Peltz. The company has since launched a series of strategic moves aimed at revitalizing its restaurants and its stock price, including the spinoff of Canadian doughnut chain Tim Hortons (TMI), the sale of Mexican chain Baja Fresh and a big stock buyback.

"The company has made progress executing its strategic plan," Pickett said in a statement Wednesday. "The board's formation of the special committee is a positive step in Wendy's continuing efforts to further enhance value for its shareholders, franchisees and other stakeholders."

For the first quarter, Wendy's earned $14.7 million, or 15 cents a share, down from $51.2 million, or 45 cents a share, a year ago. Analysts polled by Thomson Financial projected earnings of 13 cents a share.