Wendy's board of directors on Thursday unanimously rejected a $1.4 billion unsolicited cash takeover bid led by Nelson Peltz's Trian Partners, saying the offer undervalues the burger chain^1,2.

The group, which also includes Flynn Group, BlueFive Capital and Sixth Street Partners, offered $7.35 a share, according to both CBS News and CNBC^1,2. CNBC said the cash proposal was dated Oct. 28 and aimed to take the company private². CBS News said Wendy's shares traded at $7.75 before markets opened Thursday and have fallen nearly 14% over the past 12 months¹.

Art Winkleblack, chairman of the board, said an independent committee concluded the proposal "substantially undervalues Wendy's standalone prospects and long-term earnings potential"¹. CBS News said he also expressed confidence in CEO Bob Wright¹. CNBC reported the committee also said the bid does not reflect potential gains from the company's turnaround strategy².

Wendy's said it received the unsolicited offer last month and formed an independent board review, CBS News reported¹. CNBC said the board had already formed a committee of independent directors in February after a regulatory filing from Trian².

Trian declined to comment on the rejection, CNBC reported².

The company also reported third-quarter results Thursday, with same-store sales down for a seventh consecutive quarter even as earnings and revenue topped Wall Street estimates, CNBC said². Shares fell less than 1% in premarket trading, according to that report².

CBS News noted CEO Bob Wright has said Wendy's must improve food quality and has struggled with staffing, training, drive-thru operations and marketing¹. The chain, founded in 1969, has more than 7,000 locations globally¹.