Wendy's Drops 7% After 25.7% Meme-Stock Surge Fizzles

3 articles · Updated · CNBC · Jun 25

Wendy's shares fell nearly 7% on Thursday after jumping by double digits earlier in the session, reversing course a day after their biggest gain since June 2021.
A 25.7% surge in the previous session was driven less by fundamentals than by a Reddit-fueled meme-stock push, with WallStreetBets users urging traders to "save Wendy's."
Vanda Research called Wendy's the market's most extreme case of abnormal retail buying on Thursday, with net purchases running more than seven times recent norms.
The swing caught investors off guard because Wednesday's rally followed Wendy's appointment of former Potbelly executive Steven Cirulis as CFO and chief strategy officer, a move seen as too modest to explain the stock spike.