Retail investors drove $15 million in Wendy’s shares Wednesday, reversing a five-year 70% decline amid short squeeze speculation.
Wendy’s shares jumped 34% over the past week, peaking at $9.31 Thursday before retreating to $7.24. The rally followed a Reddit post urging traders to “save Wendy’s,” coinciding with the stock hitting a 13-year low after a 70% five-year decline and widespread location closures.
Nearly 32% of Wendy’s float was sold short as of May, raising short squeeze concerns. The $15 million in shares purchased Wednesday matched the total bought in the first half of 2024, highlighting the surge in retail activity.
The frenzy drew comparisons to the 2021 GameStop rally but is not expected to reach the same scale. New leadership hires, including CFO Steven Cirulis from Potbelly, added to investor optimism.