At 8:07 last night, the Wendy’s Twitter account tweeted “Great news, our ice cream machine is working again! Half off frosties on us.” Ice cream machines at Wendy’s across the country always broke down after 7:00 PM, so this was massive news for the fast food chain.
“Obviously this is a huge step in the right direction for our company. McDonald’s has been struggling to keep their ice cream machines functional for years, and we knew this was an area that we could build a competitive advantage,” CEO Todd Penegor told Hard Money.
In premarket trading Tuesday morning, Goldman Sachs issued a $33 price target for WEN. “By fixing its ice cream machines, Wendy’s has been able to unlock significant shareholder value,” stated the Goldman analyst. “We arrived at our price target by taking yesterday’s closing price of $22.94 and adding the cost of four large chocolate frosties.” Many investors expect other investment banks to raise their own price targets after Wendy’s next quarterly earnings.
Wendy’s stock was up 30% in the premarket session, and it is currently up 24% to $28.40 this afternoon. With rumors of a 5 for 5 item joining the menu soon, investors certainly have an appetite for Wendy’s stock right now.