Wendy’s (NASDAQ: WEN) becoming the next big meme stock wasn’t exactly on my bingo card for 2026, but here we are.
A surge of interest among Reddit (NYSE: RDDT) traders caused the beaten-down restaurant stock to soar by as much as 50% from its recent lows
Retail investors chasing meme stocks — especially after their initial spike — rarely works out well. Volatile moves based on investor sentiment (not earnings or business momentum) are impossible to predict, and that’s what is happening here. Wendy’s has been dealing with declining same-store sales, brand issues, and other problems in its aging fast-food business.
But that’s not to say that there aren’t some excellent stocks to consider in the restaurant industry right now. Here are two in particular that deserve a closer look. The restaurant operating system Toast (NYSE: TOST) has been beaten down from its highs on fears that AI advancements will disrupt its business.