Wendy's stock surges as retail traders eye a potential short squeeze

Wendy's shares jumped sharply on Wednesday, rising as much as 37% intraday and finishing the day up more than 25%. Trading volume surged to about 202 million shares, compared with a daily average of almost 10 million. Retail traders seized on the move as evidence a short squeeze could be forming: MarketBeat data shows roughly 32% of the stock is sold short.

On Reddit one trader wrote, "You are looking at a classic combo," adding that institutional short sellers were being caught off guard and retail communities were "weaponizing that high short interest to force a squeeze." Some investors pointed to recent corporate hires as additional bullish signs.

The burger chain announced the hiring of CEO Bob Wright and CFO Steve Cirulis, both of whom helped lead Potbelly Corp. Still, many buyers said the short-interest angle was the main attraction — "I bought thanks to a WSB post," one user said. "I'm not kidding.

wendy's, short squeeze, short interest, retail traders, trading volume, reddit, marketbeat, bob wright, steve cirulis, potbelly