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Best Restaurant Stocks to Buy Now (2023)

Top restaurant stocks in 2023 ranked by overall Zen Score. See the best restaurant stocks to buy now, according to analyst forecasts for the restaurants industry.

According to Zen Score, the 3 best restaurant stocks to buy right now are:

Rave Restaurant Group (NASDAQ:RAVE) is the top restaurant stock with a Zen Score of 58, which is 32 points higher than the restaurant industry average of 26. It passed 18 out of 33 due diligence checks and has strong fundamentals. Rave Restaurant Group has seen its stock return 34.58% over the past year, overperforming other restaurant stocks by 31 percentage points.

One Group Hospitality (NASDAQ:STKS) is the second best restaurant stock with a Zen Score of 45, which is 19 points higher than the restaurant industry average of 26. It passed 14 out of 33 due diligence checks and has strong fundamentals. One Group Hospitality has seen its stock lose -22.93% over the past year, underperforming other restaurant stocks by -27 percentage points.

One Group Hospitality has an average 1 year price target of $12.25, an upside of 51.23% from One Group Hospitality's current stock price of $8.10.

One Group Hospitality stock has a consensus Buy recommendation according to Wall Street analysts. Of the 2 analysts covering One Group Hospitality, 50% have issued a Strong Buy rating, 0% have issued a Buy, 50% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Rci Hospitality Holdings (NASDAQ:RICK) is the third best restaurant stock with a Zen Score of 43, which is 17 points higher than the restaurant industry average of 26. It passed 16 out of 38 due diligence checks and has strong fundamentals. Rci Hospitality Holdings has seen its stock return 27.19% over the past year, overperforming other restaurant stocks by 23 percentage points.

Rci Hospitality Holdings has an average 1 year price target of $140.00, an upside of 79.1% from Rci Hospitality Holdings's current stock price of $78.17.

Rci Hospitality Holdings stock has a consensus Buy recommendation according to Wall Street analysts. Of the 1 analyst covering Rci Hospitality Holdings, 0% have issued a Strong Buy rating, 100% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Out of 23 restaurant stocks that have issued dividends in the past year, the 3 restaurant stocks with the highest dividend yields are:

Flanigans Enterprises (NYSEMKT:BDL) has an annual dividend yield of N/A, which is N/A percentage points lower than the restaurant industry average of 2.34%. Flanigans Enterprises's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Flanigans Enterprises's dividend has shown consistent growth over the last 10 years.

Flanigans Enterprises's dividend payout ratio of 34.5% indicates that its dividend yield is sustainable for the long-term.

Cracker Barrel Old Country Store (NASDAQ:CBRL) has an annual dividend yield of 4.58%, which is 2 percentage points higher than the restaurant industry average of 2.34%. Cracker Barrel Old Country Store's dividend payout is not stable, having dropped more than 10% five times in the last 10 years. Cracker Barrel Old Country Store's dividend has shown consistent growth over the last 10 years.

Cracker Barrel Old Country Store's dividend payout ratio of 108.1% indicates that its dividend yield might not be sustainable for the long-term.

Ruths Hospitality Group (NASDAQ:RUTH) has an annual dividend yield of 3.53%, which is 1 percentage points higher than the restaurant industry average of 2.34%. Ruths Hospitality Group's dividend payout is not stable, having dropped more than 10% one times in the last 10 years. Ruths Hospitality Group's dividend has shown consistent growth over the last 10 years.

Ruths Hospitality Group's dividend payout ratio of 36.2% indicates that its dividend yield is sustainable for the long-term.

Restaurant stocks were up 1.68% in the last day, and up 3.87% over the last week. Restaurant Brands International was the among the top gainers in the restaurants industry, gaining 2.94% yesterday.

Restaurant Brands shares are trading higher after TD Cowen upgraded the stock from Market Perform to Outperform and raised its price target from $72 to $75.

Based on WallStreetZen's Valuation Score, the 3 most undervalued restaurant stocks right now are:

Ark Restaurants (NASDAQ:ARKR) is the most undervalued restaurant stock based on WallStreetZen's Valuation Score. Ark Restaurants has a valuation score of 100, which is 67 points higher than the restaurant industry average of 33. It passed 7 out of 7 valuation due diligence checks.

Ark Restaurants's stock has dropped -4.33% in the past year. It has underperformed other stocks in the restaurant industry by -8 percentage points.

Rave Restaurant Group (NASDAQ:RAVE) is the second most undervalued restaurant stock based on WallStreetZen's Valuation Score. Rave Restaurant Group has a valuation score of 86, which is 53 points higher than the restaurant industry average of 33. It passed 6 out of 7 valuation due diligence checks.

Rave Restaurant Group's stock has gained 34.58% in the past year. It has overperformed other stocks in the restaurant industry by 31 percentage points.

Denny's (NASDAQ:DENN) is the third most undervalued restaurant stock based on WallStreetZen's Valuation Score. Denny's has a valuation score of 71, which is 38 points higher than the restaurant industry average of 33. It passed 5 out of 7 valuation due diligence checks.

Denny's's stock has dropped -22.01% in the past year. It has underperformed other stocks in the restaurant industry by -26 percentage points.