Wendy's shares have skyrocketed 42% in a single session, driven by a coordinated buying campaign from retail investors on the social media platform Reddit.
The fast-food chain, known for its Frosty and Dave's Triple Burger, has become the latest target of online traders seeking to replicate the short-squeeze dynamics that previously propelled other high-profile stocks.
This development follows earlier gains, with shares having jumped nearly 30% in early trading and rising more than 16% in premarket activity.
The surge appears to be a classic short-squeeze dynamic, with retail traders mobilizing to drive up the price and force short sellers to cover their positions.
According to Infomoney, the buying pressure has been intense, pushing the stock well above its recent trading range.
The move marks a significant shift in sentiment for the company, which has faced headwinds in the broader restaurant industry.
This development follows earlier gains, with shares having jumped nearly 30% in early trading and rising more than 16% in premarket activity.