10 Best Food Stocks To Buy Under $20

8. The Wendy’s Company (NASDAQ:WEN)

Stock Price: $14.70

Number of Hedge Fund Holders: 21

The Wendy’s Company (NASDAQ:WEN) operates, develops, and franchises a range of quick-service restaurants. It specializes in made-to-order hamburgers, made using fresh beef available in the contiguous US, Canada, and Alaska. It also offers other signature items such as chili, salads, baked potatoes, and the Frosty dessert. The company’s operations are divided into Wendy’s U.S., Wendy’s International, and Global Real Estate & Development. The Wendy’s Company (NASDAQ:WEN) and its franchises have more than 7,000 restaurants across the globe.

Fiscal 2024 marked the company’s 14th consecutive year of global same-restaurant sales growth. Its systemwide sales rose 5.4% in fiscal Q4 2024, reaching $3.7 billion. Total revenues for the quarter were $574.3 million, and adjusted revenues were $459.3 million, an increase of 6.4%. Its adjusted EBITDA also underwent an 8.6% increase, reaching $137.5 million.

Wendy’s Company (NASDAQ:WEN) updated its capital allocation policy in the quarter, announcing a new target dividend payout ratio of 50% to 60% of adjusted earnings. The company also plans to repurchase up to $200 million of its shares in fiscal year 2025. The company’s new capital allocation policy allows it to maximize long-term shareholder value and accelerate growth. It ranks eighth on our list.