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Shares of burger chain Wendy’s surged after becoming the latest favorite of retail investors on the Reddit forum WallStreetBets, reviving memories of the 2021 meme stock phenomenon that propelled companies such as GameStop, AzerNEWS reports.

According to The Wall Street Journal, calls from Reddit users to buy Wendy’s shares quickly gained momentum, with one widely shared post urging investors to "save Wendy’s before it's too late." The stock climbed about 18% on Wednesday before surrendering part of those gains amid heightened volatility.

Wendy’s has emerged as a classic meme stock candidate. Its shares have fallen roughly 38% over the past year and more than 68% over the past five years, reflecting weak sales in the United States and pressure on profit margins from rising beef and other commodity costs.

The company's sharp decline has also attracted bearish investors. Data from Nasdaq shows that short interest in Wendy’s shares increased by approximately 81% since the beginning of 2026 through the end of May, making it an attractive target for retail traders seeking to trigger a short squeeze.

A short squeeze occurs when rising share prices force investors who bet on a decline to buy back stock to close their positions, further accelerating price gains.

The stock's extreme volatility prompted Nasdaq to temporarily halt trading twice over two days.

Beyond social media enthusiasm, Wendy’s also saw fundamental developments. The company appointed Steve Sirulis, formerly of Potbelly, as its new chief financial officer.

Another factor drawing investor attention is activist billionaire Nelson Peltz, Wendy’s largest shareholder. Peltz personally owns around 16% of the company, while his investment firm, Trian Fund Management, controls an additional 7.9%. Earlier this year, Peltz said the company was evaluating strategic alternatives, including a potential sale or delisting.

Market analysts caution that the renewed meme stock rally highlights abundant market liquidity and speculative sentiment, noting that sharp price movements driven by retail enthusiasm do not necessarily reflect a company's underlying financial fundamentals.

Some retail investors have openly acknowledged participating in the rally in hopes of recovering previous losses rather than based on the company's business outlook, underscoring the speculative nature of the latest meme stock resurgence.