Wendy’s stock soared 37% following the Reddit surge
Following the recent Reddit meme-driven stock market frenzy. Which included a post urging the fast-food restaurant to be «saved» because its shares had dropped by almost half over the previous 12 months, Wendy’s stock increased on Wednesday.
Shortly after the market started on Wednesday, Wendy’s shares shot up 37% to $8.50, the biggest intraday rise since at least June 2021 (25.8%).
According to Vanda Research, trading activity in the fast-food chain’s stock increased early this week. With stock purchases totaling $2.2 million as opposed to $109,600 for the entire previous week.
The demand for Wendy’s stock was fueled by dozens of posts on Reddit’s r/WallStreetBets forum. Which saw the stock market frenzy surrounding GameStop and AMC years prior. One post said, «We have to save Wendy’s,» while other users argued that Wendy’s stock was a better bet than SpaceX’s. According to one user, Wendy’s price-to-earnings ratio (8.1) was significantly higher than the rocket manufacturer’s (-53.6).
This increase also follows the appointment of Steve Cirulis, the former chief strategy officer and chief financial officer of Potbelly, to the same roles at Wendy’s.
$1,500 million. As of this Wednesday, Wendy’s market value has decreased by 72% from its peak of 5,400 million in October 2020. Since November 1, 2024, when the stock dropped more than 61%, the most of the decrease has taken place.
Recent years have seen a slowdown in Wendy’s business. Last year the fast-food chain issued a warning that its sales could be negative or even flat due to decreasing demand for similar companies.
