Sectors & IndustriesConsumer CyclicalRestaurants

Best Restaurant Stocks to Buy Now (2026)

Top restaurant stocks in 2026 ranked by overall Zen Rating. "A" Rated stocks have returned an average of +28.50% per year, and are the best restaurant stocks to buy now. Learn More.

According to Zen Ratings, our proprietary rating system that evaluates 115 factors proven to drive growth in stocks and assigns each stock in our system an overall letter grade as well as 7 individual Component Grades for Value, Growth, Momentum, Sentiment, Safety, Financials, and proprietary AI algorithms, the 3 best restaurant stocks to buy right now are:

Chagee Holdings (NASDAQ:CHA) is the #1 top restaurant stock out of 52 with a Zen Rating of A. Stocks with a rating of A have had an average return of +28.5% per year. Learn more.

The Component Grade breakdown for Chagee Holdings (NASDAQ:CHA) is: Value: B, Growth: B, Momentum: C, Sentiment: C, Safety: D, Financials: B, and AI: C.

Chagee Holdings (NASDAQ:CHA) has a Due Diligence Score of 51, which is 23 points higher than the restaurant industry average of 28.

CHA passed 18 out of 38 due diligence checks and has strong fundamentals. Chagee Holdings has seen its stock lose -6.2% over the past year, overperforming other restaurant stocks by 2 percentage points.

Chagee Holdings has an average 1 year price target of $12.45, a downside of -7.85% from Chagee Holdings's current stock price of $13.51.

Chagee Holdings stock has a consensus Buy recommendation according to Wall Street analysts. Of the 3 analysts covering Chagee Holdings, 33.33% have issued a Strong Buy rating, 33.33% have issued a Buy, 33.33% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Flanigans Enterprises (NYSEMKT:BDL) is the #2 top restaurant stock out of 52 with a Zen Rating of A. Stocks with a rating of A have had an average return of +28.5% per year. Learn more.

The Component Grade breakdown for Flanigans Enterprises (NYSEMKT:BDL) is: Value: C, Growth: B, Momentum: B, Sentiment: C, Safety: C, Financials: C, and AI: C.

Flanigans Enterprises (NYSEMKT:BDL) has a Due Diligence Score of 37, which is 9 points higher than the restaurant industry average of 28.

BDL passed 13 out of 38 due diligence checks and has average fundamentals. Flanigans Enterprises has seen its stock return 79.33% over the past year, overperforming other restaurant stocks by 88 percentage points.

Brinker International (NYSE:EAT) is the #3 top restaurant stock out of 52 with a Zen Rating of B. Stocks with a rating of B have had an average return of +17.17% per year. Learn more.

The Component Grade breakdown for Brinker International (NYSE:EAT) is: Value: B, Growth: C, Momentum: C, Sentiment: C, Safety: C, Financials: B, and AI: C.

Brinker International (NYSE:EAT) has a Due Diligence Score of 45, which is 17 points higher than the restaurant industry average of 28.

EAT passed 19 out of 38 due diligence checks and has strong fundamentals. Brinker International has seen its stock return 69.28% over the past year, overperforming other restaurant stocks by 78 percentage points.

Brinker International has an average 1 year price target of $265.85, an upside of 34.53% from Brinker International's current stock price of $197.61.

Brinker International stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 20 analysts covering Brinker International, 65% have issued a Strong Buy rating, 20% have issued a Buy, 15% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Out of 19 restaurant stocks that have issued dividends in the past year, the 3 restaurant stocks with the highest dividend yields are:

Chagee Holdings (NASDAQ:CHA) has an annual dividend yield of 6.81%, which is 4 percentage points higher than the restaurant industry average of 2.73%.

Chagee Holdings's dividend payout ratio of 13.2% indicates that its high dividend yield is sustainable for the long-term.

Wendy's Co (NASDAQ:WEN) has an annual dividend yield of 5.99%, which is 3 percentage points higher than the restaurant industry average of 2.73%. Wendy's Co's dividend payout is not stable, having dropped more than 10% three times in the last 10 years. Wendy's Co's dividend has shown consistent growth over the last 10 years.

Wendy's Co's dividend payout ratio of 96.1% indicates that its high dividend yield might not be sustainable for the long-term.

Arcos Dorados Holdings (NYSE:ARCO) has an annual dividend yield of 3.86%, which is 1 percentage points higher than the restaurant industry average of 2.73%. Arcos Dorados Holdings's dividend payout is not stable, having dropped more than 10% four times in the last 10 years. Arcos Dorados Holdings's dividend has shown consistent growth over the last 10 years.

Arcos Dorados Holdings's dividend payout ratio of 21.1% indicates that its dividend yield is sustainable for the long-term.

Restaurant stocks were down -1.16% in the last day, and down -1.77% over the last week.

We couldn't find a catalyst for why restaurant stocks are down.

Based on the Valuation rating, one of the 7 components of a stocks overall Zen Ratings grade, which evaluates factors including estimated earnings yield, earnings before interest and taxes/enterprise value, cash flow yield, free cash flow to price, and price-to-earnings growth (PEG ratio), the 3 most undervalued restaurant stocks right now are:

Arcos Dorados Holdings (NYSE:ARCO) is the most undervalued restaurant stock based on its Valuation Rating of A. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Arcos Dorados Holdings has a valuation score of 43, which is 16 points higher than the restaurant industry average of 27. It passed 3 out of 7 valuation due diligence checks.

Arcos Dorados Holdings's stock has dropped -1.64% in the past year. It has overperformed other stocks in the restaurant industry by 7 percentage points.

Jack In The Box (NASDAQ:JACK) is the second most undervalued restaurant stock based on its Valuation Rating of A. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Jack In The Box has a valuation score of 57, which is 30 points higher than the restaurant industry average of 27. It passed 4 out of 7 valuation due diligence checks.

Jack In The Box's stock has dropped -2.96% in the past year. It has overperformed other stocks in the restaurant industry by 5 percentage points.

Bloomin' Brands (NASDAQ:BLMN) is the third most undervalued restaurant stock based on its Valuation Rating of A. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Bloomin' Brands has a valuation score of 86, which is 59 points higher than the restaurant industry average of 27. It passed 6 out of 7 valuation due diligence checks.

Bloomin' Brands's stock has gained 52.72% in the past year. It has overperformed other stocks in the restaurant industry by 61 percentage points.

42.42% of restaurant stocks rated by analysts are a buy right now. On average, analysts expect restaurant stocks to rise by 13.69% over the next year.

5.13% of restaurant stocks have a Zen Rating of A (Strong Buy), 12.82% of restaurant stocks are rated B (Buy), 64.1% are rated C (Hold), 17.95% are rated D (Sell), and 0% are rated F (Strong Sell).