12 Best Dividend Stocks Under $25

7. The Wendy’s Company (NASDAQ:WEN)

Number of Hedge Fund Holders: 22

Share Price as of June 21: $16.4

The Wendy’s Company (NASDAQ:WEN) is an Ohio-based fast food restaurant company that is mainly known for its square hamburgers. The company has benefitted a lot from its customer-centric approach that supports its ability to drive shareholder value for the long term. It currently offers a quarterly dividend of $0.25 per share and has a dividend yield of 6%, as of June 21. It returned over $53 million to shareholders through dividends in the first quarter of 2024.

The Wendy’s Company (NASDAQ:WEN) achieved global same-restaurant sales growth, increasing by 120 basis points over two years compared to the previous quarter. This growth was partly fueled by high-single-digit YoY sales growth in the US sales growth in the US breakfast sales and a nearly 17% contribution from global digital sales. This strong performance led to a 60 basis point improvement in the margin of the US company-operated restaurants compared to the previous year, highlighting the success of these profitable initiatives. Breakfast has always been a big part of the company’s growth strategy. It has increased investments in its breakfast advertising in the first quarter of 2024.

The Wendy’s Company (NASDAQ:WEN) plans to expand quickly and increase its global presence. The company and its franchisees employ thousands of people across more than 7,000 restaurants globally, with the goal of becoming the world’s most successful and beloved restaurant brand. The company plans to increase its number of restaurants to as many as 9,000 by the end of 2025. We think that it has the potential to accelerate its growth by expanding its smaller restaurant base and increasing its share of the breakfast menu as the company is currently putting a lot of money into its breakfast segment.

As of the end of Q1 2024, 22 hedge funds tracked by Insider Monkey held stakes in The Wendy’s Company (NASDAQ:WEN), down slightly from 23 in the preceding quarter. These stakes are collectively valued at over $844.3 million. With nearly 4 million shares, AQR Capital Management was one of the company’s leading stakeholders in Q1.