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 123rd 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
ARCO	ARCOS DORADOS HOLDINGS INC	$1.59B	41.80%	7.40%	12.40%	8.40%	3.79	0.89	12.40%	5.40%	7.71%
EAT	BRINKER INTERNATIONAL INC	$7.01B	160.70%	16.90%	27.41%	16.40%	6.89	0.35	18.70%	7.90%	10.27%
CAKE	CHEESECAKE FACTORY INC	$2.96B	40.00%	5.10%	7.66%	4.60%	6.62	0.55	43.00%	4.30%	5.10%
BJRI	BJS RESTAURANTS INC	$935.43M	8.30%	3.00%	3.71%	2.30%	1.87	0.37	74.70%	2.20%	2.21%
NATH	NATHANS FAMOUS INC	$382.70M	-180.10%	40.00%	75.91%	51.10%	-11.65	3.13	31.60%	14.70%	22.10%
DIN	DINE BRANDS GLOBAL INC	$545.65M	-15.10%	1.90%	8.63%	6.30%	-8.65	1.05	40.70%	3.80%	14.28%
RICK	RCI HOSPITALITY HOLDINGS INC	$221.15M	6.20%	2.80%	6.54%	6.50%	1.22	0.92	86.80%	5.90%	12.73%
MCD	MCDONALDS CORP	$218.94B	-276.50%	14.50%	22.42%	11.90%	-29.02	1.00	59.40%	32.00%	46.56%
YUMC	YUM CHINA HOLDINGS INC	$17.19B	15.70%	8.20%	14.45%	15.90%	0.82	1.32	17.50%	7.80%	10.93%
DPZ	DOMINOS PIZZA INC	$13.52B	-14.90%	33.30%	85.34%	19.30%	-1.42	1.61	39.80%	12.20%	19.73%
BROS	DUTCH BROS INC	$10.23B	10.20%	2.30%	3.97%	3.30%	3.13	1.52	26.30%	4.00%	6.97%
BH	BIGLARI HOLDINGS INC	$1.05B	0.40%	0.20%	0.73%	0.90%	0.86	2.83	38.30%	0.50%	1.78%
LOCO	EL POLLO LOCO HOLDINGS INC	$334.00M	9.60%	4.30%	7.65%	8.80%	1.13	0.41	31.60%	5.40%	8.48%
BLMN	BLOOMIN' BRANDS INC	$653.62M	-18.40%	-1.70%	-1.36%	-0.90%	8.52	0.45	13.40%	-1.60%	-0.95%
YUM	YUM BRANDS INC	$44.50B	-18.90%	21.10%	42.35%	16.80%	-1.96	1.69	46.20%	18.00%	30.95%
PZZA	PAPA JOHNS INTERNATIONAL INC	$1.19B	-8.60%	4.20%	16.39%	6.50%	-2.98	0.87	9.00%	1.80%	4.50%
CMG	CHIPOTLE MEXICAN GRILL INC	$52.84B	44.20%	16.70%	24.78%	16.80%	1.88	1.54	25.70%	13.00%	17.09%
RRGB	RED ROBIN GOURMET BURGERS INC	$75.09M	N/A	-8.80%	-6.84%	-2.90%	-6.98	0.43	14.10%	-4.30%	-2.17%
SHAK	SHAKE SHACK INC	$4.23B	8.80%	2.40%	3.91%	3.10%	2.54	1.84	65.30%	3.10%	4.57%
HCHL	HAPPY CITY HOLDINGS LTD	$84.92M	-173.00%	-32.40%	-73.52%	-48.80%	2.63	0.83	12.60%	-35.70%	-32.72%
BRCB	BLACK ROCK COFFEE BAR INC	$980.09M	N/A	N/A	N/A	N/A	5.18	1.37	N/A	N/A	N/A
QSR	RESTAURANT BRANDS INTERNATIONAL INC	$22.40B	28.50%	3.70%	8.11%	9.30%	6.06	1.06	48.40%	10.00%	19.97%
CHA	CHAGEE HOLDINGS LTD	$2.30B	N/A	N/A	N/A	N/A	0.38	4.22	N/A	N/A	N/A
WEN	WENDY's CO	$1.58B	121.70%	3.80%	9.31%	6.30%	44.57	0.81	38.80%	8.40%	17.64%
DRI	DARDEN RESTAURANTS INC	$24.71B	50.90%	8.80%	14.19%	11.00%	5.22	0.39	21.60%	8.90%	11.61%
SBUX	STARBUCKS CORP	$105.74B	-24.00%	5.70%	13.98%	7.30%	-4.95	0.72	68.60%	5.00%	8.20%
FWRG	FIRST WATCH RESTAURANT GROUP INC	$1.02B	0.80%	0.30%	1.53%	1.30%	1.83	0.25	20.40%	0.40%	2.02%
JACK	JACK IN THE BOX INC	$434.25M	N/A	-3.10%	-1.10%	-0.50%	-3.76	0.51	29.10%	-5.50%	-1.63%
WING	WINGSTOP INC	$7.68B	-25.10%	24.50%	41.94%	17.90%	-2.03	4.05	86.10%	25.50%	39.43%
TXRH	TEXAS ROADHOUSE INC	$12.86B	30.90%	13.50%	19.68%	17.10%	1.23	0.36	18.30%	7.50%	8.70%
NDLS	NOODLES & CO	$39.76M	N/A	-14.90%	-16.60%	-6.90%	-8.21	0.34	22.90%	-9.20%	-7.05%
VENU	VENU HOLDING CORP	$394.63M	-43.80%	-17.80%	-13.42%	-17.00%	0.89	2.02	35.20%	-239.30%	-216.69%
CNNE	CANNAE HOLDINGS INC	$779.20M	-30.30%	-24.50%	-32.60%	-24.80%	0.27	2.03	15.80%	-108.40%	-104.86%
CAVA	CAVA GROUP INC	$8.36B	18.70%	11.00%	4.81%	4.60%	0.72	2.69	25.00%	12.10%	4.94%
KRUS	KURA SUSHI USA INC	$913.08M	-1.80%	-0.90%	-0.93%	-0.70%	0.94	1.61	11.00%	-1.40%	-1.29%
PTLO	PORTILLO's INC	$434.91M	5.70%	1.60%	3.80%	4.00%	2.40	0.27	22.30%	3.40%	7.30%
CBRL	CRACKER BARREL OLD COUNTRY STORE INC	$770.43M	3.70%	0.80%	1.18%	0.70%	4.02	0.52	68.80%	0.50%	0.53%
SDOT	SADOT GROUP INC	$4.44M	-46.30%	-11.60%	-32.73%	-19.20%	2.38	0.97	1.40%	-2.80%	-1.68%
SG	SWEETGREEN INC	$943.44M	-26.70%	-13.50%	-16.17%	-13.80%	1.10	1.29	16.80%	-16.50%	-16.73%
THCH	TH INTERNATIONAL LTD	$73.76M	N/A	-23.60%	98.48%	-22.70%	-2.24	0.25	5.20%	-25.20%	-23.91%
BDL	FLANIGANS ENTERPRISES INC	$59.59M	7.90%	3.50%	5.40%	4.50%	0.94	1.69	26.10%	2.50%	3.22%
DENN	DENNY's CORP	$321.87M	-29.70%	2.10%	8.85%	5.50%	-16.38	0.35	31.20%	2.20%	7.90%
ARKR	ARK RESTAURANTS CORP	$23.44M	-30.00%	-8.10%	-5.19%	-3.00%	3.10	0.77	72.00%	-6.90%	-3.46%
GENK	GEN RESTAURANT GROUP INC	$79.39M	-9.90%	-0.60%	-0.42%	-0.20%	14.80	0.33	7.40%	-0.60%	-0.39%
GTIM	GOOD TIMES RESTAURANTS INC	$12.25M	3.10%	1.20%	0.57%	0.40%	1.51	0.37	9.60%	0.70%	0.28%
STKS	ONE GROUP HOSPITALITY INC	$79.63M	-737.40%	-9.70%	0.77%	0.50%	-12.41	0.35	16.70%	-22.60%	1.44%
MB	MASTERBEEF GROUP	$122.40M	-75.30%	-12.00%	-14.63%	-13.50%	3.83	1.60	65.40%	-8.00%	-5.67%
RAVE	RAVE RESTAURANT GROUP INC	$45.19M	20.10%	17.30%	22.24%	25.90%	0.15	7.57	71.80%	23.10%	28.04%
REBN	REBORN COFFEE INC	$10.88M	N/A	-179.50%	641.85%	-219.00%	-2.81	0.08	55.50%	-191.50%	-169.19%
VSTD	VESTAND INC	$4.67M	-152.60%	-18.20%	-19.30%	-12.30%	3.07	0.57	5.40%	-23.80%	-19.03%
TWNP	TWIN HOSPITALITY GROUP INC	$32.10M	N/A	-13.00%	-50.90%	-5.40%	-6.61	0.06	19.40%	-20.20%	-10.15%
BTBD	BT BRANDS INC	$9.05M	-13.30%	-8.10%	-4.57%	-4.20%	0.55	6.80	18.20%	-6.70%	-3.57%
CCHH	CCH HOLDINGS LTD	$8.59M	N/A	N/A	N/A	N/A	0.80	2.02	N/A	N/A	N/A
HDL	SUPER HI INTERNATIONAL HOLDING LTD	$1.07B	5.60%	6.30%	21.15%	24.20%	-0.11	1.89	26.20%	2.50%	5.32%
CHSN	CHANSON INTERNATIONAL HOLDING	$1.43M	-1.70%	-0.70%	-0.37%	-0.40%	1.10	2.00	40.90%	-1.60%	-0.72%
FAT	FAT BRANDS INC	$7.00M	N/A	-18.50%	27.29%	-8.10%	-3.08	0.03	24.70%	-40.50%	-16.90%

Restaurant Stocks FAQ

What are the best restaurant stocks to buy right now in Jan 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. Arcos Dorados Holdings (NYSE:ARCO)

Arcos Dorados Holdings (NYSE:ARCO) is the #1 top restaurant stock out of 56 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 Arcos Dorados Holdings (NYSE:ARCO) is: Value: B, Growth: C, Momentum: C, Sentiment: A, Safety: C, Financials: C, and AI: C.

Arcos Dorados Holdings (NYSE:ARCO) has a Due Diligence Score of 44, which is 17 points higher than the restaurant industry average of 27.

ARCO passed 16 out of 38 due diligence checks and has strong fundamentals. Arcos Dorados Holdings has seen its stock return 3.43% over the past year, overperforming other restaurant stocks by 12 percentage points.

2. Brinker International (NYSE:EAT)

Brinker International (NYSE:EAT) is the #2 top restaurant stock out of 56 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 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 45, which is 18 points higher than the restaurant industry average of 27.

EAT passed 19 out of 38 due diligence checks and has strong fundamentals. Brinker International has seen its stock return 9.85% over the past year, overperforming other restaurant stocks by 18 percentage points.

Brinker International has an average 1 year price target of $174.53, an upside of 10.69% from Brinker International's current stock price of $157.68.

Brinker International stock has a consensus Buy recommendation according to Wall Street analysts. Of the 15 analysts covering Brinker International, 53.33% have issued a Strong Buy rating, 13.33% have issued a Buy, 33.33% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

3. Cheesecake Factory (NASDAQ:CAKE)

Cheesecake Factory (NASDAQ:CAKE) is the #3 top restaurant stock out of 56 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 Cheesecake Factory (NASDAQ:CAKE) is: Value: B, Growth: C, Momentum: D, Sentiment: C, Safety: B, Financials: C, and AI: C.

Cheesecake Factory (NASDAQ:CAKE) has a Due Diligence Score of 46, which is 19 points higher than the restaurant industry average of 27.

CAKE passed 17 out of 38 due diligence checks and has strong fundamentals. Cheesecake Factory has seen its stock return 23.59% over the past year, overperforming other restaurant stocks by 32 percentage points.

Cheesecake Factory has an average 1 year price target of $57.85, a downside of -2.47% from Cheesecake Factory's current stock price of $59.31.

Cheesecake Factory stock has a consensus Hold recommendation according to Wall Street analysts. Of the 13 analysts covering Cheesecake Factory, 23.08% have issued a Strong Buy rating, 15.38% have issued a Buy, 38.46% have issued a hold, while 0% have issued a Sell rating, and 23.08% have issued a Strong Sell.

What are the restaurant stocks with highest dividends?

Out of 20 restaurant stocks that have issued dividends in the past year, the 3 restaurant stocks with the highest dividend yields are:

1. Wendy's Co (NASDAQ:WEN)

Wendy's Co (NASDAQ:WEN) has an annual dividend yield of 8.05%, which is 5 percentage points higher than the restaurant industry average of 2.86%. 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 82.1% indicates that its high dividend yield is sustainable for the long-term.

2. Chagee Holdings (NASDAQ:CHA)

Chagee Holdings (NASDAQ:CHA) has an annual dividend yield of 7.61%, which is 5 percentage points higher than the restaurant industry average of 2.86%.

3. Nathans Famous (NASDAQ:NATH)

Nathans Famous (NASDAQ:NATH) has an annual dividend yield of 4.81%, which is 2 percentage points higher than the restaurant industry average of 2.86%. Nathans Famous's dividend payout is not stable, having dropped more than 10% one times in the last 10 years. Nathans Famous's dividend has not shown consistent growth over the last 10 years.

Nathans Famous's dividend payout ratio of 35.8% indicates that its high dividend yield is sustainable for the long-term.

Why are restaurant stocks down?

Restaurant stocks were down -0.76% in the last day, and up 2.81% over the last week.

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

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. Dine Brands Global (NYSE:DIN)

Dine Brands Global (NYSE:DIN) is the 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.

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

Dine Brands Global's stock has gained 41.74% in the past year. It has overperformed other stocks in the restaurant industry by 50 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 15 points higher than the restaurant industry average of 28. It passed 3 out of 7 valuation due diligence checks.

Wendy's Co's stock has dropped -43.97% in the past year. It has underperformed other stocks in the restaurant industry by -36 percentage points.

3. Arcos Dorados Holdings (NYSE:ARCO)

Arcos Dorados Holdings (NYSE:ARCO) 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.

Arcos Dorados Holdings has a valuation score of 43, which is 15 points higher than the restaurant industry average of 28. It passed 3 out of 7 valuation due diligence checks.

Arcos Dorados Holdings's stock has gained 3.43% in the past year. It has overperformed other stocks in the restaurant industry by 12 percentage points.

Are restaurant stocks a good buy now?

51.52% of restaurant stocks rated by analysts are a buy right now. On average, analysts expect restaurant stocks to rise by 10.46% over the next year.

0% of restaurant stocks have a Zen Rating of A (Strong Buy), 5.13% of restaurant stocks are rated B (Buy), 66.67% are rated C (Hold), 12.82% are rated D (Sell), and 15.38% 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 34.94x.

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. Arcos Dorados Holdings (NYSE:ARCO)

2. Brinker International (NYSE:EAT)

3. Cheesecake Factory (NASDAQ:CAKE)

1. Wendy's Co (NASDAQ:WEN)

2. Chagee Holdings (NASDAQ:CHA)

3. Nathans Famous (NASDAQ:NATH)

1. Dine Brands Global (NYSE:DIN)

2. Wendy's Co (NASDAQ:WEN)

3. Arcos Dorados Holdings (NYSE:ARCO)

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. Arcos Dorados Holdings (NYSE:ARCO)

2. Brinker International (NYSE:EAT)

3. Cheesecake Factory (NASDAQ:CAKE)

1. Wendy's Co (NASDAQ:WEN)

2. Chagee Holdings (NASDAQ:CHA)

3. Nathans Famous (NASDAQ:NATH)

1. Dine Brands Global (NYSE:DIN)

2. Wendy's Co (NASDAQ:WEN)

3. Arcos Dorados Holdings (NYSE:ARCO)

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.