Wendy’s has been a huge force in the food industry for decades, but it is not known how it will do without the support of a significant source of funding.
As part of the $5bn deal announced Wednesday, Wendy’s will receive a $3.3 billion infusion from Wells Fargo.
The company is looking to use the cash to improve the financial services it offers its customers.
The announcement comes after Wells Fargo raised $4.2 billion in its latest round of funding and the announcement came on the heels of a new round of deals from Goldman Sachs, Morgan Stanley, and Barclays.
The deal is expected to close in the third quarter of 2021, with the new funding set to come in at between $4 and $5 a share.
Wendy’s shares closed at $17.66 on Wednesday.
The latest funding, combined with a new commitment to expand its customer base and accelerate its strategy, has the company expecting to reach its goal of $5.5 billion by the end of 2021.
“Wells Fargo and our management team have built a strong track record of delivering value to our shareholders and we are pleased to be able to further accelerate our plans to expand our customer base through the acquisition of new brands, strategic investments, and new products,” said Wendy’s CEO, Gary Franchi.
“We are focused on delivering value in the restaurant sector to all of our customers, both now and in the future.
The continued strength of Wendy’s is thanks to the tremendous commitment of our investors, our management and team, and our dedicated employees.
We are proud to have a strong relationship with Wells Fargo, and look forward to continuing to support them and their great businesses in the years ahead.”
The new financing also includes a $1.4 billion loan from Goldman, as well as $1 billion from the Barclays Capital Fund.
Wells Fargo said the deal will help it “continue to expand into new businesses” and “expand its operations across a range of sectors.”
Wells Fargo CEO Gary Franchis said he was “delighted” to work with Wendy’s.
“Wendy has a long history of delivering exceptional value to its shareholders,” Franchis wrote in a statement.
“Our investments will support our ability to accelerate our plan to grow our customer portfolio, which we believe will enable us to expand beyond the fast-casual model, with expanded service options, and continue to innovate in our restaurant products, technology and processes.”