Wendy's shares soar for a second day as retail investors pile into their new meme darling
CNBC • • business
Key Points:
- Wendy's shares surged another 9% in premarket trading on Thursday, following a 25.7% gain the previous day, driven largely by retail traders and social-media enthusiasm rather than company fundamentals.
- The rally is attributed to a viral "Save Wendy's" campaign on Reddit's WallStreetBets forum, where traders rallied behind the fast-food chain, viewing it as a meme-stock favorite similar to GameStop.
- The momentum started after Wendy's announced the appointment of Steven Cirulis, former Potbelly executive, as CFO and chief strategy officer, sparking renewed investor interest.
- Vanda Research identified Wendy's as experiencing the most extreme abnormal retail buying, with net purchases exceeding seven times recent norms due to the viral campaign.
- Reddit users showcased large positions and encouraged others to buy Wendy's stock, fueling the meme-stock rally with humorous posts and strong community engagement.
