Wendy’s Stock Up On A Reddit Thread, Can It Sustain?

by Trefis Team
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Wendy’s (NASDAQ: WEN), an American fast-food chain, saw its stock decline by 17.8% over the last five trading days. In comparison, the broader S&P500 rose by 0.7% over the last five trading days. The stock hit a 52-week high last week due to a sudden rise fueled by a Reddit thread under WallStreetBets subreddit. Now is WEN stock poised to grow? We believe that there is a 50% chance of a rise in WEN stock over the next month (twenty-one trading days) based on our machine learning analysis of trends in the stock price over the last ten years. See our analysis on Wendy’s Stock Chances Of Rise for more details.

Five Days: WEN -18%, vs. S&P500 0.7%; Underperformed market

(Extremely rare event)

  • Wendy’s stock declined 18% over a five day trading period ending 6/14/2021, compared to the broader market (S&P500) which rose 0.7%
  • A change of -18% or more over five trading days is an extremely rare event, which has occurred 7 times out of 2517 in the last ten years

Ten Days: WEN 2.3%, vs. S&P500 1.3%; Outperformed market

(38% likelihood event)

  • Wendy’s stock rose 2.3% over the last ten trading days (two weeks), compared to the broader market (S&P500) rise of 1.3%
  • A change of 2.3% or more over ten trading days is a 38% likelihood event, which has occurred 945 times out of 2517 in the last ten years

Twenty-One Days: WEN 1.4%, vs. S&P500 1.9%; Underperformed market

(48% likelihood event)

  • Wendy’s stock rose 1.4% over the last twenty-one trading days (one month), compared to the broader market (S&P500) rise of 1.9%
  • A change of 1.4% or more over twenty-one trading days is an 48% likelihood event, which has occurred 1218 times out of 2516 in the last ten years

While Wendy’s stock may have moved, it is helpful to see how its peers stack up. McDonald’s Stock Comparison With Peers summarizes how McDonald’s compares against peers on metrics that matter. You can find more such useful comparisons on Peer Comparisons.

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