Wendy's board chair Nelson Peltz resigns, marking a new chapter for the burger chain.

• Wendy's chair Nelson Peltz is stepping down and assuming the title of chairman emeritus.
• Wendy's' second-largest shareholder is Peltz's Trian Fund Management, which holds a 10% stake in the burger chain.
• After 17 years as chair, Peltz's departure could pave the way for Wendy's to enter a new era under CEO Kirk Tanner.

Nelson Peltz is relinquishing his position as chairman of after 17 years in charge of the fast-food company.

Wendy's said Friday that the change is effective immediately.

Wendy's sales have slumped due to low-income consumers eating out less, resulting in a 12% drop in shares this year and a market value of $3.45 billion. New CEO Kirk Tanner has plans to invest millions into updates to the mobile app and advertising to revive the business.

According to T.D. Cowen analyst Andrew Charles, Peltz's departure paves the way for a new chapter under new Chairman Art Winkleblack & new CEO Kirk Tanner. However, he kept a "hold" rating for the stock due to its limited diversification compared to other restaurant peers.

Wendy's announced that Peltz will become chairman emeritus and step down to focus on other board commitments and Trian Partners' future endeavors.

Peltz's Trian Fund Management holds a 10% stake in Wendy's, making it the company's second-largest shareholder after Vanguard. The fund initially invested in Wendy's in 2005 and currently holds two board seats at the fast-food company.

Wendy's was considered for a takeover by Trian in 2022, but the plan was ultimately abandoned.

Wendy's board has appointed Winkleblack, a former CFO at H.J. Heinz, as its non-executive chair. Winkleblack has been a director of the company since 2016.