Wendy's (WEN) shares climbed another 12% in premarket trading Thursday, extending a volatile rally that has lifted the stock nearly 30% over two sessions.
The move comes as retail investors, coordinated largely through social media platforms like Reddit, continue to pile into the heavily shorted fast-food chain.
The surge appears disconnected from company fundamentals, with no new earnings data or strategic announcements driving the price action.
Instead, the trading pattern mirrors the classic short-squeeze dynamic that propelled GameStop (GME) and other meme stocks in previous years.
Retail traders are targeting the high short interest, forcing sellers to cover positions and fueling further upward momentum.
Handelsavisen notes that such sentiment-driven rallies carry significant risk for institutional investors and traders alike.