Shares of Wendy’s Co. (NASDAQ: WEN) have soared over 20% from yesterday’s close as members of Reddit’s Wallstreetbets forum have fueled another meme driven rally. In the last 24 hours, the fast food chain has jumped from 19th place to 6th on the list of Reddit’s trendiest stocks. Users on Wallstreetbets have been posting ‘Chicken Tendies’ in jest, a term used to reference one’s profit on any given stock. Wendy’s has taken note of the Wallstreetbets fueled rally as a spokesperson for the Company stated, "We’re aware of the unusual trading activity this morning and we’re closely monitoring.”
Earlier this year, Wallstreetbets members sent a clear message to hedge funds that they would artificially pump any stock with massive short interest that they deem is unjustified. However, unlike other stocks targeted by Reddit users, including AMC Entertainment Holdings, Inc. (NASDAQ: AMC), Gamestop Corp. (NYSE: GME), and Clover Health Investments Corp. (NASDAQ: CLOV), Wendy’s does not have any significant short interest with just about 4.6% of its share float shorted. Ironically enough, Wendy’s top shareholder is a hedge fund, Triad, which owns a 12% stake in the Company.
Wendy’s recently beat analysts’ first quarter earnings expectations with USD 460.2 Million in revenue. The Company's U.S. sales have also risen 13.5%, as Americans feel more comfortable dining at restaurants with the rollout of COVID-19 vaccines. CNBC Mad Money host Jim Cramer seems to approve of this latest ‘meme-stock’ rally as earlier he tweeted, “Wendy's ($WEN) a huge favorite of @MadMoneyOnCNBC gets nice push from Reddit. I think it deserves to be higher.”