Wendy's stock surged up to 30% on Wednesday after retail investors started buying the fast-food company's shares.
The rally was mainly driven by posts on Reddit's WallStreetBets forum, where users discussed reasons why Wendy's stock could move higher.
Investors pointed to Wendy's new management team, decision to close underperforming stores, and plans to expand the brand in China as positive steps.
Some investors also believe Wendy's could become a takeover target, as billionaire investor Nelson Peltz and his firm Trian Fund Management own over 30 million shares.
The Financial Times reported that Peltz is trying to raise money to potentially take Wendy's private, adding fuel to the stock rally.
Despite the challenges, including negative sales growth and weaker customer traffic, investors see potential for a comeback under new leadership.
