Wendy’s shares surge to $7.74 as retail traders push a ‘Save Wendy’s’ meme, though short interest remains high at 26%.
Wendy’s (NASDAQ:WEN) stock climbed 6% to $7.74 in midday trading Friday, fueled by a viral ‘Save Wendy’s’ meme campaign on social media. The rally extends a three-week rebound after shares hit a 12-year low earlier this week, though sentiment has cooled since peaking on June 25.
Despite the gains, WEN remains down 34% over the past year, with Q1 same-restaurant sales falling 8% and net income dropping 42%. The stock’s trailing P/E of 10x and 8% yield have attracted value buyers, but short interest near 26% signals potential volatility ahead of Q2 earnings on August 14.
Insiders Peter May and Bradley Peltz purchased shares at $7.14 in April, adding to the stock’s mixed outlook. The meme-driven rally contrasts with weak fundamentals, leaving traders divided on the sustainability of the move.