What Investors Should Know About Wendy's Sudden Surge
Wendy's is the newest meme-stock obsession, but there's also a compelling turnaround story behind the fast-food chain.
Overview
Meme stock mania strikes again, with The Wendy's Company (NASDAQ: WEN) shares soaring as much as 42% this week. No, Wendy's didn't suddenly sell a record number of hamburgers or launch a new signature sandwich. The surge was caused by a viral post on Reddit's (NYSE: RDDT) infamous WallStreetBets forum. The group decided to rally behind Wendy's as an institution worth "saving."
Much like GameStop and AMC a few years ago, Wendy's was the perfect fit for the meme-stock lovers. As a brand that has underperformed for quite some time and is heavily shorted, Wendy's has gained support from activist Redditors. While meme-style investing is not recommended for long-term investors, there are legitimate reasons to be cautiously optimistic about Wendy's future.
Details
First, Wendy's just named industry veteran Steve Cirulis as chief financial officer and chief strategy officer. He and CEO Bob Wright previously worked together to turn around Potbelly Sandwich Works. During their time at Potbelly, shares climbed more than 500%. Their strategy with Wendy's could potentially have similar positive results.
Source
Originally published at www.fool.com.