Wendy's shares surge 40% after becoming a meme stock

Shares of Wendy's, the American fast-food franchise, surged more than 40% during trading Wednesday after the company became a topic of discussion as a meme stock in online communities.

According to Investing.com, Wendy's shares closed Wednesday at $7.86, up 25.74% from the previous session's closing price.

The rally continued in after-hours trading, with the stock climbing a further 10.81% to $8.74 per share.

The previous day, Wendy's announced a change in its chief financial officer. The incoming CFO, Cirullis, previously worked at sandwich franchise Potbelly alongside Bob Wright, who became Wendy's CEO last month.

"During the time Cirullis and Wright worked together at Potbelly, average store sales posted double-digit growth and the share price rose more than 500%," Wendy's said.

Analysts, however, said the share price surge was driven not only by the leadership news but also by the stock's emergence as a meme stock in online communities.

Yahoo Finance said the heavy mention of Wendy's as a meme stock on Reddit, one of the largest online communities in the United States, likely contributed to the share price movement.

Yahoo Finance noted that the hashtag "Save Wendy's" had been trending on WallStreetBets, the stock market forum on Reddit, according to business outlet Inc.

On Wednesday, multiple posts appeared on WallStreetBets with screenshots of trade confirmations, as users shared proof of their Wendy's stock purchases.

Founded in 1969, Wendy's is one of America's most iconic fast-food chains, known for its square beef patties made from fresh, never-frozen meat. As of late last year, the company operated more than 7,300 stores across 35 countries, with 2024 sales reaching $14.5 billion (22.3 trillion won).

Wendy's entered South Korea in 1984 through a joint venture with its American parent company, opening its first location in Euljiro to considerable popularity. The chain withdrew from the country in 1998, unable to weather the IMF financial crisis, and has not returned since.