Wendy’s (WEN) shares jumped nearly 20% in late morning trading Tuesday after Reddit investing communities began circulating bullish comments about the fast food chain, praising the company’s irreverent social media feed and its “chicken tendies,” which make it “literally the perfect stock for this sub.”
But Wendy’s isn’t the same as AMC (AMC), GameStop (GME), or most of the other companies popular among Reddit traders. Notably, it is not a firm on which many short-selling hedge funds are speculating.
The restaurant chain will also profit from the return of workers to companies and offices around the country, which may drive sales from its higher-margin breakfast menu. Earlier this month, the business also opened its first restaurant in the United Kingdom, providing distinctive American menu items.
Despite a statement from the US Securities and Exchange Commission yesterday pledging to “protect individual investors if violations of federal securities laws are uncovered,” other so-called meme stocks such as AMC Entertainment (AMC) and GameStop (GME) were also on the rise Tuesday.