Nelson Peltz’s Trian Fund Management is not pursuing a take-private bid for The Wendy’s Company (NASDAQ:WEN) at this time, sources familiar with the matter said, according to Reuters.

Trian, a longtime Wendy’s shareholder with around a 16% stake, had earlier been reported to be preparing a bid with a consortium including BlueFive Capital and franchisee Flynn Group, after take-private speculation helped lift the stock 14.7% on Aug. 12 to a nine-month high.

Wendy’s shares were down 14% at $7.76 Thursday morning, per Benzinga Pro data.

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Wendy’s Short Interest Remains High

Wendy’s stock attracts attention due to its high short interest, climbing to 43% of the float as of August 12. This has reignited speculation about a potential short squeeze, with retail traders actively engaging.

A viral post on WallStreetBets urged traders to rally around Wendy’s, contributing to its momentum. Jim Cramer advised investors to take profits if bought during the meme stock surge, preferring earnings momentum over takeover speculation.

Retail Traders Fuel Wendy’s Stock Surge

Retail traders have played a significant role in Wendy’s recent stock movements. On June 25, a viral post on WallStreetBets encouraged traders to support Wendy’s, leading to a 27% increase in the stock’s price.

The stock’s momentum has been driven by short-squeeze speculation and increased visibility in retail forums. The appointment of Steve Cirulis as CFO and Chief Strategy Officer on June 23 also coincided with this activity, as retail traders continued to pile in on the stock.

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