11 Best Fast Food Stocks To Invest In Right Now

8. The Wendy’s Company (NASDAQ:WEN)

Number of Hedge Fund Holders: 22

The Wendy’s Company (NASDAQ:WEN) is a parent corporation of the American fast food chain, Wendy’s. It operates through three business segments: Wendy’s U.S., Wendy’s International, and Global Real Estate & Development.

The Wendy’s Company (NASDAQ:WEN) announced financial results for the third quarter of 2024 on October 31. Revenue for Q3 grew 2.9% year-over-year to reach $566.7 million, driven by increases in advertising fund revenue, franchise royalty revenue, and franchise fees. Global system-wide sales rose by 1.8%, while same-restaurant sales saw a 0.2% increase. In addition, the company maintained its competitive position in U.S. markets within the QSR Burger category. Late-night and morning sales delivered strong performances during the quarter as well.

However, net income dropped 13.4% this year, from $58 million in Q3 2023 to $50.2 million. This was attributed to increased incremental investment in breakfast advertising and high general and administrative expenses. Depreciation and a higher effective tax rate also contributed to the dip in earnings for the quarter. The stock was down 6% following the announcement of these results for Q3 2024.

Despite the drop in net income, the fast food giant remains optimistic about its trajectory. The Wendy’s Company (NASDAQ:WEN) has made a robust start to the fourth quarter, with same-restaurant sales accelerating significantly in October, compared to the third quarter. The company expects full-year system-wide global sales growth to be around 3% and has reaffirmed its adjusted EBITDA outlook of $535 million to $545 million.

The Wendy’s Company (NASDAQ:WEN) is also seeing a surge in digital sales, having grown 40% from last year, led by a strong show by its U.S. segment. The company has made several enhancements of late to its app to improve user experience, which has seen the number of reward members enrollment grow from 43 million at the end of Q2 to 45 million as of the end of September. The fast-food chain is also expanding global operations at a rapid scale. It opened 64 new restaurants internationally during Q3, which has put the company on track to meet its goal of 250 to 300 openings for the full year.

According to Insider Monkey’s database for Q2 2024, 22 hedge funds had investments in Wendy’s, making it one of the best fast food stocks to invest in right now.