Wendy’s (NASDAQ: WEN) became the latest meme stock sensation after retail traders on Reddit’s WallStreetBets forum decided the struggling burger chain needed rescuing.
A viral post titled “We need to save Wendy’s” flooded the forum, drawing massive retail investor attention and pushing Wendy’s shares up as much as 42% during Wednesday’s trading session.
The surge was dramatic enough to briefly trigger a trading halt on the New York Stock Exchange due to volatility, according to CNBC.
The stock ultimately closed up 25.7% at $7.86 a share, marking one of the most significant single-day moves the company has seen in recent memory.
Market data firm Vanda characterized the activity as “abnormal retail buying,” noting that retail investors posted their second-highest day of net buying on record for Wendy’s going back to 2012.
Net buying came in at more than 50 times higher than the stock’s 20-day average, according to Vanda, underlining just how unusual the surge in retail interest was.
Wendy’s ranked as the second-most mentioned stock across Reddit trading forums over the previous 24 hours, according to Swaggy Stocks data cited by CNBC, reflecting the viral nature of the campaign.
The episode carries unmistakable echoes of the GameStop frenzy in 2021, when retail traders on Reddit piled into a heavily shorted stock, sending it from under $20 to nearly $500 before it came crashing back down.
Wendy’s stock had lost roughly 36% over the past year heading into Wednesday’s session, and approximately 23% of its float was sold short, making it an appealing target for retail traders looking for a short squeeze opportunity.
Posts on WallStreetBets framed Wendy’s as a legitimate turnaround and recovery play, giving the buying campaign at least a surface-level fundamental narrative beyond pure speculation.
The company itself has been working to stabilize its business, recently appointing Bob Wright, the former head of Potbelly, as its new chief executive officer.
Whether the Reddit-fueled momentum can translate into sustained gains remains to be seen, but the episode has once again demonstrated the market-moving power of organized retail investors operating through social media platforms.
