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New meme stock Wendy’s soars 30% with trading halted at one point
The fast-food chain jumped after Reddit traders piled in and Wendy's named former Potbelly executive Steve Cirulis as chief financial officer and strategy chief.
- On Wednesday, Wendy's shares surged 37% to around $8.50, marking the largest intraday gain since June 2021, as retail traders on Reddit targeted the beaten-down chain in a meme-stock frenzy.
- The surge follows years of decline for Wendy's, which saw shares fall more than 78% from 2021 record highs while battling weak sales and activist investor pressure since November 2024.
- Wendy's appointed former Potbelly Corp executives CEO Bob Wright and CFO Steve Cirulis, a leadership change investors interpreted as a bullish turnaround signal for the struggling burger chain.
- Retail traders on r/WallStreetBets pushed demand for shares, arguing Wendy's was undervalued, while short interest stands at 34% of free float, leaving bearish investors vulnerable to a potential squeeze.
- Robust trading activity saw more than $368 million worth of shares change hands by mid-morning, roughly six times the one-year average, with bearish investors facing $45 million in potential paper losses.
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Wendy’s surges over 40% after viral Reddit post ignites meme-stock frenzy
The rally, which briefly triggered a volatility halt, appeared to have little to do with the company’s fundamentals and everything to do with the online trading crowd searching for its next target.
·New York, United States
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Coverage Details
Total News Sources15
Leaning Left3Leaning Right4Center6Last UpdatedBias Distribution46% Center
Bias Distribution
- 46% of the sources are Center
46% Center
L 23%
C 46%
R 31%
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