Fast food operator Wendy’s (NASDAQ:WEN) has been the subject of due diligence threads on the popular retail investor site Reddit in the WallStreetBets subreddit.
The result has sent Wendy’s shares to all-time highs and the stock appears headed to be the next retail investor fueled parabolic move.
A post on WallStreetBets listed several reasons why Wendy’s could be the next stock to break out.
The reasons named include a new summer salad, strong social media profile and the company’s chicken tendies making it the perfect retail stock.
The thread mentions Wendy’s popular posts on Twitter Inc (NYSE:TWTR) where the company roasts both individuals and companies. Also mentioned on Reddit: the fact that Wendy’s worked together with another popular retail stock GameStop Corp (NYSE:GME) to roast others.
Another thread told retail traders to "stop asking when Lambo and get yourself a $WEN Lambo," referencing a Lamborghini luxury vehicle. This thread pointed to strong fundamentals for Wendy’s.
In the first quarter, Wendy’s reported revenue of $460.2 million, which beat Street consensus of $443 million. The company raised its dividend and announced an additional $50-million share buyback in its first quarter report.
Same store sales were up 13.5% in the U.S. and up 13.0% globally in the first quarter.
The company could have another strong showing in the second quarter facing low comparable sales during the pandemic and with nearly 100% of dining rooms open in the second quarter of this year, compared to 85% in the first quarter.
WEN shares surged $4.35, or 19%, to $27.29.
