Wendy's turned down Nelson Peltz's $1.4 billion offer. It's betting instead on thicker bacon and whole-leaf lettuce.

Wendy's ( WEN ) new CEO Bob Wright just revealed his plan to save the ailing fast food chain, and it looks a lot like the one Burger King ( QSR ) ran to rack up huge sales in 2026.

The plan hinges on a return to better food quality if fast food diners are going to pay inflationary prices.

"We are also rebuilding our food offerings and have begun testing improvements to quality and craveability of our core items, including thicker, crispier bacon, a richer and creamier Frosty, whole leaf lettuce on sandwiches, and improved salads," Wright said on his earnings call Thursday morning.

Wendy's conviction in its turnaround attempt, called Dave's Way, has led the company to reject a $1.4 billion buyout offer from billionaire investor Nelson Peltz's Trian Partners.

"The Independent Committee thoroughly evaluated this Proposal and unanimously concluded that it substantially undervalues Wendy's standalone prospects and long-term earnings potential," Wendy's board chair Art Winkleblack wrote in a statement . "Our confidence rests firmly in Bob Wright's proven track record of seasoned industry leadership, including restaurant business turnarounds."

The company will have a lot of work to do to turn around the struggling fast food business.

In the third quarter, Wendy's reported US same-store sales declined 5.7%, marking the company's seventh straight quarter of comparable sales declines, per Yahoo Finance AlphaSpace analysis.

Wendy's reported adjusted earnings per share of $0.13, beating Wall Street's estimates of $0.09. Third quarter revenue of $547 million declined 0.5% year over year but came in ahead of the Street's estimate of $531 million, per S&P Global Market Intelligence.

The restaurant chain has also been dealing with franchisees shuttering locations amid severe margin pressures. In September, Meritage Hospitality Group, one of Wendy's largest franchise operators, with more than 300 locations, filed for Chapter 11 bankruptcy protection following an escalating dispute with corporate headquarters.

Wendy's said Thursday it plans to acquire up to 163 Wendy's restaurants from Meritage.

"WEN appears to have aligned the system around Dave's Way, altered its approach to breakfast and has plans for greater portfolio changes, all of which should help the longer-term story," Citi analyst Jon Tower wrote in a note. "However, this will be overshadowed by potential M&A headlines and short of WEN indicating M&A is off the table, we see a floor on share performance today."

Follow Brian Sozzi on X @BrianSozzi , Instagram , and LinkedIn . Tips on stories? Email him at brian.sozzi@yahoofinance.com.