Wendy's Shares Fall After News Of Note Offering

Gallo also noted that the company has also recently signed a new two-year transition services agreement in which it will pay Trian Fund Management L.P., a hedge fund led by billionaire investor Nelson Peltz, $250,000 a quarter in consulting fees.

Gallo said the new agreement was a step in the right direction, but added that he had hoped the consulting fee would have "gone away entirely."

The company has been relying on Trian — one of its biggest shareholders — to help it merge the Wendy's and Arby's brands together. The Wendy's/Arby's Group was formed when Arby's owner, Triarc Cos., bought the Wendy's brand. Triarc was also formerly led by Peltz.

Gallo has a "Strong Buy" rating on the stock with a $7 price target, implying he expects the shares to rise 75 percent in the next 12 months.