It's official. Wendy's stock is the newest short-squeeze.
Retail traders piled into shares of the burger chain on Wednesday, catalyzing a 25% gain that extended by another 9% on Thursday before paring the gains amid volatile intraday trading. According to data from Vanda Research, which tracks retail inflows into single stocks and ETF, Wednesday marked the second-biggest day of retail net-buying of the stock since 2012, with flows behind just Nvidia and SpaceX.
Commentary from retail traders around the internet show they see a classic setup: shares of a nostalgia-heavy consumer brand with high short interest, similar to the conditions that helped stocks like GameStop and AMC Entertainment rocket higher.
Wendy's has short interest of about 32% of float, but with shares up more than 25% since the short squeeze began, traders who didn't get in at the start may be looking for the next one.
According to JPMorgan analyst Arun Jain, data on retail buying and hedge fund short interest suggests three other stocks could be next in line.
- Smartbird: +5% year-to-date, 20% short interest
- The Campbell's Company: -20% year-to-date, 25% short interest
- Oddity Tech: -67% year-to-date, 24% short interest
Shares of Smartbird, formerly shoemaker Allbirds, have been volatile after its wild April surge sparked by the announcement that it would be pivoting to become an AI infrastructure company.
While hype from the news and 582% rally ultimately cooled down, JPMorgan's data shows that Smarbird remains a favorite among retail traders who have embraced its turnaround story, while short sellers are still betting that the gambit won't amount to much.
"The company rebranded on June 17, completing its pivot from a footwear retailer to an AI infrastructure-focused business, and increased its financing facility to $100 million from $50 million," Jan wrote. "Retail interest has picked up since April 2026, with net purchases totaling $14M, alongside rising short interest now at ~20% of float, up 12% since April 2026."
The Campbell's Company has emerged as a retail favorite in 2026 as share prices have declined, compromised by pullbacks in consumer spending and tariff-driven inflation. But like Wendy's, it seems to have resonated with the retail crowd as a nostalgic consumer brand.
