Wendy’s stock jumped as much as 30% on Wednesday after retail investors started buying the fast-food company’s shares. The rally was mainly driven by posts on Reddit’s WallStreetBets forum, where users discussed reasons why Wendy’s stock could move higher. In a viral WallStreetBets thread, investors pointed to Wendy’s new management team as a possible reason for optimism, according to Reddit users.
Reddit users also highlighted the company’s decision to close some underperforming stores as a positive step. Plans to expand the Wendy’s brand in China were another reason investors became interested in the stock, according to Reddit discussions. Some investors also believe Wendy’s could become a takeover target, as noted by Yahoo Finance.
Nelson Peltz buyout talk
One major reason behind the excitement is billionaire investor Nelson Peltz and his investment firm Trian Fund Management. Trian Fund Management is currently Wendy’s largest shareholder and owns more than 30 million shares. The Financial Times reported that Peltz is trying to raise money to potentially take Wendy’s private. The buyout speculation added more fuel to the stock rally. Despite the sharp rise in the stock price, Wendy’s business has faced several challenges recently.
The company has reported negative sales growth since the first quarter of 2025. Customer traffic at Wendy’s restaurants has also been weaker than the broader quick-service restaurant industry. In the most recent quarter, Wendy’s same-store sales fell 5.5%. One Reddit investor argued that Wendy’s has the potential for a comeback but warned that the company still faces challenges. The investor specifically pointed to rising commodity costs as a concern for the business, according to comments cited by Yahoo Finance.
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Meme stock momentum
High beef prices remain a major issue for restaurant operators because they increase operating costs. Another WallStreetBets user posted, “We need to save Wendy’s before it’s too late,” showing strong support from retail investors. Wendy’s has now joined the list of so-called “meme stocks” that have gained attention from retail traders online.
Another factor helping Wendy’s stock was a management change announced on Tuesday. Wendy’s named industry veteran Steve Cirulis as its new Chief Financial Officer (CFO), effective immediately, according to the company announcement. The appointment came shortly after former Potbelly CEO Bob Wright became Wendy’s CEO in May. Cirulis and Wright previously worked together at Potbelly.
Overall, Wendy’s stock surged up to 30% because of a combination of Reddit-driven buying, hopes for a turnaround under new management, expansion plans, and growing speculation that Nelson Peltz could eventually take the company private.
