Sectors & Industries Consumer 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 +32.52% per year, and are the best restaurant stocks to buy now. Learn More.

Industry: Restaurants

Overview Zen Rating Price Value Growth Financials

Momentum Sentiment Forecast Dividends Due Diligence

Restaurants is Zen Rated F and is the 126th ranked industry out of 145 stock market industries

Ticker	Company	Market Cap	ROE	ROA	ROCE	ROIC	D/E	Current Ratio	Gross Margin	Profit Margin	Operating Margin
LOCO	EL POLLO LOCO HOLDINGS INC	$404.71M	9.50%	4.40%	7.97%	9.20%	1.08	0.32	31.90%	5.40%	8.58%
YUMC	YUM CHINA HOLDINGS INC	$16.99B	16.40%	8.50%	15.20%	16.40%	0.87	1.05	17.60%	7.90%	11.00%
EAT	BRINKER INTERNATIONAL INC	$6.27B	123.40%	17.00%	28.54%	16.80%	5.83	0.40	18.60%	8.10%	10.41%
YUM	YUM BRANDS INC	$43.34B	-23.30%	22.80%	52.44%	17.90%	-2.13	0.65	45.70%	20.50%	31.48%
SBUX	STARBUCKS CORP	$118.83B	-18.30%	4.70%	15.91%	7.30%	-4.61	0.92	67.50%	3.90%	7.90%
NDLS	NOODLES & CO	$70.66M	N/A	-14.70%	-15.81%	-6.50%	-6.78	0.31	23.40%	-8.60%	-6.38%
ARCO	ARCOS DORADOS HOLDINGS INC	$1.89B	32.50%	5.90%	11.60%	8.00%	4.04	1.03	12.30%	4.50%	7.58%
BLMN	BLOOMIN' BRANDS INC	$680.63M	5.90%	0.70%	1.31%	0.80%	6.87	0.26	13.30%	0.50%	0.77%
MCD	MCDONALDS CORP	$201.57B	-433.90%	14.50%	22.75%	12.00%	-47.69	1.14	59.50%	31.60%	46.33%
CAKE	CHEESECAKE FACTORY INC	$3.02B	38.30%	5.10%	7.63%	4.60%	6.18	0.60	43.40%	4.30%	5.04%
CHA	CHAGEE HOLDINGS LTD	$2.10B	16.80%	10.90%	18.61%	141.30%	0.53	3.11	45.80%	8.80%	12.42%
QSR	RESTAURANT BRANDS INTERNATIONAL INC	$27.46B	27.10%	3.80%	8.38%	9.60%	5.23	0.99	48.40%	10.00%	19.85%
BROS	DUTCH BROS INC	$9.35B	12.10%	2.70%	4.53%	3.70%	3.14	1.33	25.30%	4.60%	7.40%
RICK	RCI HOSPITALITY HOLDINGS INC	$203.54M	4.00%	1.80%	5.95%	5.80%	1.29	0.81	86.90%	3.90%	11.37%
DIN	DINE BRANDS GLOBAL INC	$358.86M	-6.10%	0.90%	7.65%	5.20%	-6.82	0.89	40.10%	1.70%	11.77%
BRCB	BLACK ROCK COFFEE BAR INC	$573.64M	N/A	0.00%	3.28%	2.50%	5.07	1.04	29.30%	0.00%	4.87%
DPZ	DOMINOS PIZZA INC	$11.06B	-15.00%	33.70%	76.26%	17.50%	-1.47	1.60	40.10%	11.90%	19.18%
DRI	DARDEN RESTAURANTS INC	$22.35B	50.70%	8.60%	14.05%	10.90%	5.13	0.39	21.60%	8.70%	11.32%
BJRI	BJS RESTAURANTS INC	$859.17M	12.00%	4.40%	5.87%	3.70%	1.68	0.31	74.70%	3.10%	3.35%
CMG	CHIPOTLE MEXICAN GRILL INC	$42.68B	48.40%	16.00%	25.30%	15.50%	2.66	0.92	24.60%	12.00%	15.77%
VENU	VENU HOLDING CORP	$240.18M	-43.00%	-15.50%	-12.62%	-14.30%	1.40	0.77	30.40%	-247.60%	-220.77%
SHAK	SHAKE SHACK INC	$2.96B	8.00%	2.20%	3.88%	3.00%	2.59	1.69	65.00%	2.80%	4.38%
JACK	JACK IN THE BOX INC	$264.03M	N/A	-4.80%	-4.08%	-1.40%	-3.16	0.66	28.70%	-8.70%	-5.07%
PZZA	PAPA JOHNS INTERNATIONAL INC	$1.08B	-6.20%	3.20%	15.50%	6.00%	-2.83	0.84	20.50%	1.40%	4.21%
WING	WINGSTOP INC	$3.67B	-15.30%	16.10%	34.63%	12.40%	-1.81	2.24	86.20%	15.80%	26.95%
TXRH	TEXAS ROADHOUSE INC	$10.41B	28.20%	12.20%	17.87%	15.30%	1.42	0.50	17.50%	6.90%	8.03%
CAVA	CAVA GROUP INC	$9.83B	8.40%	4.90%	5.91%	5.50%	0.74	2.65	24.60%	5.40%	6.00%
RRGB	RED ROBIN GOURMET BURGERS INC	$66.33M	N/A	-4.00%	0.80%	0.30%	-6.30	0.45	14.20%	-1.90%	0.24%
BH	BIGLARI HOLDINGS INC	$689.95M	-6.70%	-3.90%	-3.92%	-4.10%	0.96	2.43	37.80%	-9.50%	-8.61%
WEN	WENDY's CO	$1.32B	140.60%	3.30%	7.68%	5.70%	41.23	1.76	38.40%	7.60%	16.25%
BTBD	BT BRANDS INC	$10.83M	-10.00%	-6.10%	-6.36%	-5.20%	0.67	4.84	19.30%	-5.10%	-4.49%
KRUS	KURA SUSHI USA INC	$683.93M	-0.80%	-0.40%	-0.40%	-0.30%	1.02	1.46	11.20%	-0.60%	-0.54%
PTLO	PORTILLO's INC	$330.51M	3.40%	1.00%	2.81%	2.80%	2.37	0.26	21.20%	2.10%	5.39%
CNNE	CANNAE HOLDINGS INC	$648.08M	-38.50%	-30.60%	-41.00%	-31.40%	0.32	2.07	15.50%	-121.20%	-115.27%
FWRG	FIRST WATCH RESTAURANT GROUP INC	$736.66M	2.90%	1.00%	1.78%	1.50%	1.83	0.29	20.70%	1.40%	2.23%
CBRL	CRACKER BARREL OLD COUNTRY STORE INC	$696.23M	-0.90%	-0.20%	-0.68%	-0.40%	3.94	0.49	68.70%	-0.10%	-0.31%
SG	SWEETGREEN INC	$816.13M	-33.40%	-16.40%	-20.02%	-15.70%	1.21	1.09	15.20%	-19.70%	-19.72%
VSTD	VESTAND INC	$5.29M	-152.60%	-18.20%	-19.30%	-12.30%	3.07	0.57	5.40%	-23.80%	-19.03%
MB	MASTERBEEF GROUP	$113.05M	-75.30%	-12.00%	-14.63%	-13.50%	3.83	1.60	65.40%	-8.00%	-5.67%
NATH	NATHANS FAMOUS INC	$415.50M	-182.40%	37.20%	94.17%	49.80%	-4.34	2.73	30.70%	13.60%	20.80%
GENK	GEN RESTAURANT GROUP INC	$75.07M	-22.60%	-1.20%	-1.81%	-1.00%	18.51	0.42	5.20%	-1.40%	-1.75%
HCHL	HAPPY CITY HOLDINGS LTD	$38.62M	-173.00%	-32.40%	-73.52%	-48.80%	2.63	0.83	12.60%	-35.70%	-32.72%
RAVE	RAVE RESTAURANT GROUP INC	$41.36M	19.70%	17.10%	21.93%	25.00%	0.13	8.50	73.00%	23.00%	28.39%
GTIM	GOOD TIMES RESTAURANTS INC	$13.51M	3.20%	1.20%	0.70%	0.50%	1.46	0.45	9.90%	0.80%	0.34%
BDL	FLANIGANS ENTERPRISES INC	$58.32M	8.90%	4.10%	6.11%	5.10%	0.94	1.65	26.40%	2.80%	3.59%
CCHH	CCH HOLDINGS LTD	$8.66M	N/A	N/A	N/A	N/A	0.80	2.02	N/A	N/A	N/A
ARKR	ARK RESTAURANTS CORP	$26.69M	-39.50%	-10.10%	-7.75%	-4.60%	2.89	0.76	72.10%	-8.50%	-5.26%
HDL	SUPER HI INTERNATIONAL HOLDING LTD	$883.11M	9.60%	5.10%	10.19%	10.90%	0.91	2.41	26.10%	4.30%	7.26%
CHSN	CHANSON INTERNATIONAL HOLDING	$713.31k	0.50%	0.30%	0.67%	0.90%	0.46	0.81	45.00%	1.00%	2.46%
REBN	REBORN COFFEE INC	$20.12M	N/A	-108.10%	-120.24%	-139.20%	1.84	1.03	62.60%	-112.90%	-96.47%
THCH	TH INTERNATIONAL LTD	$64.82M	N/A	-32.50%	-239.27%	-28.00%	-1.94	0.33	6.10%	-33.00%	-31.71%
STKS	ONE GROUP HOSPITALITY INC	$60.29M	N/A	-14.00%	1.66%	1.10%	-9.90	0.36	17.70%	-15.50%	1.53%
SDOT	SADOT GROUP INC	$622.29k	-1,386.80%	-128.70%	161.00%	-442.90%	-1.00	0.05	1.90%	-37.80%	-35.63%

Restaurant Stocks FAQ

What are the best restaurant stocks to buy right now in May 2026?

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:

1. El Pollo Loco Holdings (NASDAQ:LOCO)

El Pollo Loco Holdings (NASDAQ:LOCO) is the #1 top restaurant stock out of 53 with a Zen Rating of B. Stocks with a rating of B have had an average return of +19.88% per year. Learn more.

The Component Grade breakdown for El Pollo Loco Holdings (NASDAQ:LOCO) is: Value: B, Growth: C, Momentum: C, Sentiment: B, Safety: B, Financials: C, and AI: C.

El Pollo Loco Holdings (NASDAQ:LOCO) has a Due Diligence Score of 28, which is -2 points lower than the restaurant industry average of 30. Although this number is below the industry average, our proven quant model rates LOCO as a "B".

LOCO passed 9 out of 33 due diligence checks and has average fundamentals. El Pollo Loco Holdings has seen its stock return 52.14% over the past year, overperforming other restaurant stocks by 110 percentage points.

El Pollo Loco Holdings has an average 1 year price target of $14.17, an upside of 4.86% from El Pollo Loco Holdings's current stock price of $13.51.

El Pollo Loco Holdings stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 3 analysts covering El Pollo Loco Holdings, 66.67% have issued a Strong Buy rating, 0% have issued a Buy, 33.33% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

2. Yum China Holdings (NYSE:YUMC)

Yum China Holdings (NYSE:YUMC) is the #2 top restaurant stock out of 53 with a Zen Rating of C. Stocks with a rating of C have had an average return of +7.53% per year. Learn more.

The Component Grade breakdown for Yum China Holdings (NYSE:YUMC) is: Value: C, Growth: C, Momentum: C, Sentiment: C, Safety: D, Financials: B, and AI: B.

Yum China Holdings (NYSE:YUMC) has a Due Diligence Score of 42, which is 12 points higher than the restaurant industry average of 30.

YUMC passed 15 out of 38 due diligence checks and has strong fundamentals. Yum China Holdings has seen its stock return 10.72% over the past year, overperforming other restaurant stocks by 69 percentage points.

3. Brinker International (NYSE:EAT)

Brinker International (NYSE:EAT) is the #3 top restaurant stock out of 53 with a Zen Rating of C. Stocks with a rating of C have had an average return of +7.53% per year. Learn more.

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

Brinker International (NYSE:EAT) has a Due Diligence Score of 43, which is 13 points higher than the restaurant industry average of 30.

EAT passed 18 out of 38 due diligence checks and has strong fundamentals. Brinker International has seen its stock return 5.34% over the past year, overperforming other restaurant stocks by 63 percentage points.

Brinker International has an average 1 year price target of $183.50, an upside of 25.43% from Brinker International's current stock price of $146.30.

Brinker International stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 14 analysts covering Brinker International, 64.29% have issued a Strong Buy rating, 7.14% have issued a Buy, 28.57% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

What are the restaurant stocks with highest dividends?

Out of 21 restaurant stocks that have issued dividends in the past year, the 3 restaurant stocks with the highest dividend yields are:

1. Chagee Holdings (NASDAQ:CHA)

Chagee Holdings (NASDAQ:CHA) has an annual dividend yield of 8.37%, which is 5 percentage points higher than the restaurant industry average of 3.08%.

Chagee Holdings's dividend payout ratio of 14.7% indicates that its high dividend yield is sustainable for the long-term.

2. Wendy's Co (NASDAQ:WEN)

Wendy's Co (NASDAQ:WEN) has an annual dividend yield of 8.06%, which is 5 percentage points higher than the restaurant industry average of 3.08%. Wendy's Co's dividend payout is not stable, having dropped more than 10% two 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 78.8% indicates that its high dividend yield is sustainable for the long-term.

3. Papa Johns International (NASDAQ:PZZA)

Papa Johns International (NASDAQ:PZZA) has an annual dividend yield of 5.6%, which is 3 percentage points higher than the restaurant industry average of 3.08%. Papa Johns International's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Papa Johns International's dividend has shown consistent growth over the last 10 years.

Papa Johns International's dividend payout ratio of 219% indicates that its high dividend yield might not be sustainable for the long-term.

Why are restaurant stocks down?

Restaurant stocks were down -1.41% in the last day, and down -4.28% over the last week. Shake Shack was the among the top losers in the restaurants industry, dropping -28.26% yesterday.

Shake Shack shares are trading lower after the company reported worse-than-expected Q1 sales results.

What are the most undervalued restaurant stocks?

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:

1. Bloomin' Brands (NASDAQ:BLMN)

Bloomin' Brands (NASDAQ:BLMN) 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.

Bloomin' Brands has a valuation score of 57, which is 28 points higher than the restaurant industry average of 29. It passed 4 out of 7 valuation due diligence checks.

Bloomin' Brands's stock has gained 9.5% in the past year. It has overperformed other stocks in the restaurant industry by 67 percentage points.

2. Wendy's Co (NASDAQ:WEN)

Wendy's Co (NASDAQ:WEN) is the second most undervalued restaurant stock based on its Valuation Rating of B. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Wendy's Co has a valuation score of 43, which is 14 points higher than the restaurant industry average of 29. It passed 3 out of 7 valuation due diligence checks.

Wendy's Co's stock has dropped -40.9% in the past year. It has overperformed other stocks in the restaurant industry by 17 percentage points.

3. Jack In The Box (NASDAQ:JACK)

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

Jack In The Box has a valuation score of 0, which is -29 points higher than the restaurant industry average of 29. It passed 0 out of 7 valuation due diligence checks. Although this number is below the industry average, our proven quant model rates JACK a Valuation Rating of "B".

Jack In The Box's stock has dropped -47.84% in the past year. It has overperformed other stocks in the restaurant industry by 10 percentage points.

Are restaurant stocks a good buy now?

43.75% of restaurant stocks rated by analysts are a strong buy right now. On average, analysts expect restaurant stocks to rise by 24.85% over the next year.

0% of restaurant stocks have a Zen Rating of A (Strong Buy), 2.7% of restaurant stocks are rated B (Buy), 72.97% are rated C (Hold), 16.22% are rated D (Sell), and 8.11% are rated F (Strong Sell).

What is the average p/e ratio of the restaurants industry?

The average P/E ratio of the restaurants industry is 38.68x.

WallStreetZen does not provide financial advice and does not issue recommendations or offers to buy stock or sell any security.

Information is provided 'as-is' and solely for informational purposes and is not advice. WallStreetZen does not bear any responsibility for any losses or damage that may occur as a result of reliance on this data.

Sectors & Industries Consumer 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 +32.52% per year, and are the best restaurant stocks to buy now. Learn More.

Restaurant Stocks FAQ

1. El Pollo Loco Holdings (NASDAQ:LOCO)

2. Yum China Holdings (NYSE:YUMC)

3. Brinker International (NYSE:EAT)

1. Chagee Holdings (NASDAQ:CHA)

2. Wendy's Co (NASDAQ:WEN)

3. Papa Johns International (NASDAQ:PZZA)

1. Bloomin' Brands (NASDAQ:BLMN)

2. Wendy's Co (NASDAQ:WEN)

3. Jack In The Box (NASDAQ:JACK)

Company

Stock Tools

Stock Ideas

Sectors & IndustriesConsumer CyclicalRestaurantsBest Restaurant Stocks to Buy Now (2026)Top restaurant stocks in 2026 ranked by overall Zen Rating. "A" Rated stocks have returned an average of +32.52% per year, and are the best restaurant stocks to buy now. Learn More.

Restaurant Stocks FAQ

1. El Pollo Loco Holdings (NASDAQ:LOCO)

2. Yum China Holdings (NYSE:YUMC)

3. Brinker International (NYSE:EAT)

1. Chagee Holdings (NASDAQ:CHA)

2. Wendy's Co (NASDAQ:WEN)

3. Papa Johns International (NASDAQ:PZZA)

1. Bloomin' Brands (NASDAQ:BLMN)

2. Wendy's Co (NASDAQ:WEN)

3. Jack In The Box (NASDAQ:JACK)

Company

Stock Tools

Stock Ideas

Sectors & Industries Consumer 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 +32.52% per year, and are the best restaurant stocks to buy now. Learn More.