The stock market has been turbulent lately, and the Nasdaq Composite (^IXIC 0.55%) has seen bigger ups and downs than most of its peers. On Wednesday morning, investors were looking on the bright side of things, and that helped send the index up more than 1% as of 11:30 a.m. ET.
Given the emphasis the market has put on high-growth tech stocks lately, it was surprising to see a couple of more conventional companies leading the Nasdaq higher on Wednesday. Wendy's (WEN -0.43%) has been serving fast-food customers for decades, but one big-name hedge fund has its sights set on buying more than just a burger and fries. Meanwhile, Intuit (INTU 0.42%) is a player in the software industry, but few thought of the TurboTax maker as a growth leader prior to its latest financial report.
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Could Wendy's get eaten up?
Wendy's shares were up more than 10% Wednesday as investors reacted to news that it might become a takeover target. Nothing is definitive as of yet, but one well-known billionaire investor made his intentions known concerning the fast-food burger chain.
In a Form 13D filing with the U.S. Securities and Exchange Commission, longtime shareholder Nelson Peltz and his firm, Trian Fund Management, revealed that Trian had informed Wendy's board of directors of its intent to explore and evaluate the possibility of a transaction involving the fast-food chain. Trian would seek to enhance shareholder value with a potential acquisition, business combination, or another transaction that would end up giving Trian control over Wendy's.
Wendy's responded with a simple statement noting that its board of directors regularly evaluates ways to maximize shareholder value. The board will consider any proposal from Trian carefully, fulfilling its fiduciary duties to work in the best interests of the company and its shareholders.
Prior to the announcement, shares of Wendy's had fallen to their lowest levels since the beginning of the pandemic in early 2020. It's logical that Peltz would choose such a time to consider a strategic acquisition, but he may struggle to find any better ways to address the problems of rising food costs and wages than those that are already being tried by Wendy's and its peers.
Intuit had a good tax season
Shares of Intuit rose by 7.5% on Wednesday morning. The maker of tax and accounting software announced its latest results for its fiscal 2022 third quarter, and the numbers showed a solid tax season for the software company.
For the period, which ended April 30, Intuit's total revenue rose 35% rise to $5.63 billion. Organic growth was 29%, while the company's acquisition of Mailchimp added 6 percentage points of sales growth to its total. Operating income jumped 25% year over year to $2.40 billion, and adjusted earnings of $7.65 per share were 26% higher.
Some of the gains came from the fact that last year's tax filing deadline was delayed due to the COVID-19 pandemic. That has implications for what the fiscal fourth quarter might bring to Intuit. However, the company reported record results for its Credit Karma business and saw gains in its consumer, small business, and online ecosystem segments.
With the results, Intuit boosted its guidance. It now expects full-year revenue growth of 31% to 32%, up by 4 to 5 percentage points from its previous outlook. Its forecast of adjusted earnings per share in the $11.68 to $11.74 range is slightly higher as well. As long as taxes remain complicated, it appears that Intuit will have plenty of business.
