Wendy’s Shares Spike After Reddit’s r/WallStreetBets Calls it the ‘Perfect Stock’

"Clio, Michigan, USA - March 7, 2012: The Wendy's location in Clio, Michigan.
RiverNorthPhotography / Getty Images

Wendy’s shares spike 26% on Tuesday after a post in Reddit’s WallStreetBets forum called it “the perfect stock” because of the company’s signature products, particularly the “chicken tendies,” and notorious social media presence, reports CNBC.

See: AMC, GameStop on Regulators’ Radar, as SEC Says it is Monitoring Meme Stocks
Find: Hedge Fund Manager Warns: Beware the Meme Stock

With that, the popular fast-food chain joined the growing list of so-called meme stocks which also includes AMC, GameStop and Bed, Bath & Beyond.

CNN noted that Wendy’s isn’t a company that many short-selling hedge funds are betting against. Unlike the other meme stocks, Wendy’s is still a solid, growing business.

However, analysts are still cautioning investors.

“I think the reason the Reddit crowd is pushing it up today is because the retail share float is pretty small in Wendy’s, but I can guarantee you nothing changed overnight to change the fundamental story,” Gradient Investments President Michael Binger told CNBC’s “Trading Nation” on Tuesday.

Building Wealth

See: 3 Common Crypto Misconceptions Debunked
Find: The Most Expensive Fast Food Items Only Cost This Much

Yahoo Finance reported that Wendy’s first-quarter U.S. same-store sales surged 13.5% as vaccines rolled out and the economy began to reopen. The restaurant’s breakfast menu, digital ordering and premium chicken sandwiches also boosted first-quarter sales, added Yahoo Finance. Wendy’s CEO Todd Penegor told Yahoo Finance that he is looking to open 8,000 Wendy’s locations globally by 2025.

Binger also told CNBC that he believes Wendy’s has reached a price target and that it’s relatively expensive when compared to other stocks in the group. Throughout the pandemic, Wendy’s underperformed compared to its peers. The burger chain’s stock started falling on Wednesday morning and shares are selling at $26.06, down by 9.5%.

More From GOBankingRates

About the Author

Josephine Nesbit is a freelance writer specializing in real estate and personal finance. She grew up in New England but is now based out of Ohio where she attended The Ohio State University and lives with her two toddlers and fiancé. Her work has appeared in print and online publications such as Fox Business and Scotsman Guide.

Wendy’s Shares Spike After Reddit’s r/WallStreetBets Calls it the ‘Perfect Stock’
Close popup Live Richer Newsletter

We're here to help you Live Richer.

Sign up to receive our daily weekday newsletter with the latest finance and lifestyle content.

Loading...
Please enter an email.
Please enter a valid email address.
There was an unknown error. Please try again later.

For our full Privacy Policy, click here.