Sectors & Industries Consumer CyclicalRestaurants
Best Restaurant Stocks to Buy Now (2025)
Top restaurant stocks in 2025 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 D and is the 99th 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
EAT	BRINKER INTERNATIONAL INC	$5.97B	301.30%	13.00%	23.27%	12.40%	8.93	0.28	17.60%	6.50%	8.64%
NATH	NATHANS FAMOUS INC	$399.75M	-96.10%	44.30%	105.90%	49.50%	-3.57	2.94	36.00%	16.20%	25.37%
BJRI	BJS RESTAURANTS INC	$756.29M	4.40%	1.60%	1.63%	1.00%	1.81	0.41	74.20%	1.20%	1.01%
HDL	SUPER HI INTERNATIONAL HOLDING LTD	$1.43B	6.60%	7.70%	21.67%	23.10%	-0.11	2.25	27.30%	2.80%	5.42%
YUM	YUM BRANDS INC	$41.99B	-19.40%	23.00%	43.77%	16.10%	-1.88	1.47	47.50%	19.70%	31.65%
CAKE	CHEESECAKE FACTORY INC	$2.60B	40.60%	5.40%	7.77%	4.70%	5.86	0.47	42.20%	4.40%	5.06%
LOCO	EL POLLO LOCO HOLDINGS INC	$278.42M	10.10%	4.30%	7.98%	8.80%	1.27	0.26	30.80%	5.40%	8.71%
MB	MASTERBEEF GROUP	N/A	N/A	N/A	N/A	N/A	7.96	0.80	N/A	N/A	N/A
CHA	CHAGEE HOLDINGS LTD	N/A	N/A	N/A	70.81%	N/A	1.10	2.37	45.80%	19.20%	24.53%
DRI	DARDEN RESTAURANTS INC	$23.48B	48.70%	8.80%	13.35%	11.10%	4.70	0.39	21.50%	9.00%	11.66%
ARCO	ARCOS DORADOS HOLDINGS INC	$1.61B	30.10%	5.10%	14.38%	8.40%	4.69	0.61	13.10%	3.30%	6.84%
JACK	JACK IN THE BOX INC	$491.07M	N/A	-1.50%	3.01%	1.40%	-4.35	0.50	30.10%	-2.70%	4.55%
TXRH	TEXAS ROADHOUSE INC	$11.03B	33.80%	14.70%	21.46%	18.80%	1.34	0.62	19.10%	8.10%	9.43%
PBPB	POTBELLY CORP	$242.02M	92.70%	16.10%	3.83%	2.30%	3.51	0.51	71.60%	8.70%	1.64%
RICK	RCI HOSPITALITY HOLDINGS INC	$351.84M	1.80%	0.80%	3.90%	3.80%	1.18	1.02	86.30%	1.60%	7.18%
YUMC	YUM CHINA HOLDINGS INC	$16.29B	15.60%	8.00%	14.34%	15.60%	0.82	1.18	17.00%	8.10%	11.21%
YOSH	YOSHIHARU GLOBAL CO	$21.72M	-438.20%	-16.50%	-18.87%	-10.30%	67.81	0.24	11.80%	-20.80%	-16.95%
DPZ	DOMINOS PIZZA INC	$16.79B	-15.40%	33.60%	531.19%	18.00%	-1.48	0.60	39.50%	12.80%	20.29%
BROS	DUTCH BROS INC	$9.21B	7.10%	1.50%	3.51%	2.90%	3.23	1.76	26.60%	2.80%	6.30%
DENN	DENNY's CORP	$190.44M	-43.70%	4.60%	11.79%	7.60%	-15.59	0.42	31.50%	4.80%	10.44%
REBN	REBORN COFFEE INC	$11.92M	-185.10%	-49.50%	-91.69%	-38.60%	1.99	0.31	62.80%	-81.10%	-77.42%
DIN	DINE BRANDS GLOBAL INC	$303.70M	-27.70%	3.70%	12.02%	8.70%	-9.29	0.87	46.20%	7.80%	19.90%
WEN	WENDY's CO	$2.51B	71.50%	3.80%	8.55%	6.30%	18.41	1.85	38.20%	8.70%	17.64%
PZZA	PAPA JOHNS INTERNATIONAL INC	$1.13B	-18.70%	9.70%	25.53%	10.80%	-3.03	0.83	20.20%	4.00%	7.57%
CAVA	CAVA GROUP INC	$10.68B	20.90%	12.10%	4.19%	4.50%	0.68	2.97	25.10%	13.50%	4.51%
SHAK	SHAKE SHACK INC	$3.73B	2.20%	0.60%	1.04%	0.80%	2.56	1.97	65.40%	0.80%	1.25%
QSR	RESTAURANT BRANDS INTERNATIONAL INC	$20.93B	33.00%	4.20%	8.81%	10.20%	6.36	0.97	51.80%	12.10%	23.34%
MCD	MCDONALDS CORP	$228.38B	-176.50%	15.00%	23.09%	12.10%	-15.53	1.19	58.10%	31.70%	45.72%
WING	WINGSTOP INC	$7.36B	-30.30%	29.30%	42.51%	21.50%	-1.98	3.56	85.70%	26.50%	39.55%
SBUX	STARBUCKS CORP	$90.97B	-41.10%	10.00%	21.96%	11.30%	-5.15	0.64	69.20%	8.60%	12.81%
BH	BIGLARI HOLDINGS INC	$529.99M	-0.60%	-0.40%	-0.28%	-0.30%	0.51	1.16	38.30%	-1.00%	-0.56%
CBRL	CRACKER BARREL OLD COUNTRY STORE INC	$950.65M	8.10%	1.70%	2.31%	1.40%	3.66	0.62	69.00%	1.00%	1.12%
CMG	CHIPOTLE MEXICAN GRILL INC	$68.07B	43.20%	17.30%	25.79%	17.60%	1.59	1.52	26.40%	13.60%	17.86%
GENK	GEN RESTAURANT GROUP INC	$146.80M	5.00%	0.30%	0.48%	0.30%	15.30	0.83	10.50%	0.30%	0.46%
PTLO	PORTILLO's INC	$771.39M	7.80%	2.00%	4.54%	4.90%	2.52	0.39	23.70%	4.20%	8.72%
BLMN	BLOOMIN' BRANDS INC	$681.14M	-52.90%	-3.80%	-3.19%	-1.90%	23.95	0.34	15.20%	-3.20%	-1.96%
CNNE	CANNAE HOLDINGS INC	$1.11B	-15.40%	-13.00%	-14.09%	-12.80%	0.23	1.34	18.00%	-67.30%	-64.84%
TWNP	TWIN HOSPITALITY GROUP INC	$323.59M	N/A	-8.70%	-2.14%	-1.50%	-7.41	0.52	19.70%	-13.60%	-2.95%
FAT	FAT BRANDS INC	$48.40M	N/A	-14.10%	-7.27%	-4.70%	-3.83	0.30	25.40%	-32.00%	-12.15%
STKS	ONE GROUP HOSPITALITY INC	$93.43M	-59.50%	-4.40%	0.90%	0.80%	16.05	0.53	18.20%	-5.20%	1.11%
NDLS	NOODLES & CO	$44.82M	-487.70%	-10.60%	-10.73%	-5.00%	-59.19	0.31	24.40%	-7.30%	-5.63%
SG	SWEETGREEN INC	$2.29B	-19.50%	-10.60%	-12.34%	-11.80%	0.92	2.03	19.60%	-13.40%	-13.51%
FWRG	FIRST WATCH RESTAURANT GROUP INC	$1.07B	3.20%	1.30%	2.96%	2.80%	1.54	0.40	22.00%	1.90%	4.00%
RRGB	RED ROBIN GOURMET BURGERS INC	$51.01M	N/A	-11.40%	-11.59%	-5.10%	-8.61	0.53	12.60%	-6.20%	-4.19%
KRUS	KURA SUSHI USA INC	$711.59M	-5.40%	-2.90%	-2.75%	-2.50%	0.82	2.67	12.00%	-4.10%	-3.98%
BTBD	BT BRANDS INC	$6.52M	-28.00%	-17.20%	-19.00%	-17.30%	0.72	3.47	11.40%	-15.60%	-13.53%
RAVE	RAVE RESTAURANT GROUP INC	$36.19M	20.70%	16.90%	23.00%	30.00%	0.17	7.19	71.70%	21.80%	27.58%
BDL	FLANIGANS ENTERPRISES INC	$45.54M	5.40%	2.30%	3.83%	3.20%	1.16	1.46	25.80%	1.70%	2.40%
SDOT	SADOT GROUP INC	$9.44M	15.50%	2.40%	26.61%	20.70%	4.53	1.16	0.70%	0.60%	1.23%
THCH	TH INTERNATIONAL LTD	$92.61M	N/A	-23.20%	-1,403.95%	-20.30%	-2.85	0.27	3.40%	-29.60%	-27.86%
ARKR	ARK RESTAURANTS CORP	$33.37M	-4.40%	-1.30%	-1.55%	-1.00%	2.24	0.83	72.60%	-1.20%	-1.10%
CHSN	CHANSON INTERNATIONAL HOLDING	$8.03M	5.00%	1.90%	3.19%	2.60%	1.27	1.30	39.50%	4.10%	4.84%
GTIM	GOOD TIMES RESTAURANTS INC	$20.75M	7.30%	2.60%	2.40%	1.70%	1.74	0.42	11.20%	1.60%	1.22%

Restaurant Stocks FAQ

What are the best restaurant stocks to buy right now in May 2025?

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. Brinker International (NYSE:EAT)

Brinker International (NYSE:EAT) is the #1 top restaurant stock out of 53 with a Zen Rating of A. Stocks with a rating of A have had an average return of +32.52% per year. Learn more.

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

Brinker International (NYSE:EAT) has a Due Diligence Score of 37, which is 5 points higher than the restaurant industry average of 32.

EAT passed 15 out of 38 due diligence checks and has average fundamentals. Brinker International has seen its stock return 150.56% over the past year, overperforming other restaurant stocks by 154 percentage points.

Brinker International has an average 1 year price target of $151.75, an upside of 12.99% from Brinker International's current stock price of $134.30.

Brinker International stock has a consensus Hold recommendation according to Wall Street analysts. Of the 12 analysts covering Brinker International, 16.67% have issued a Strong Buy rating, 0% have issued a Buy, 83.33% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

2. Nathans Famous (NASDAQ:NATH)

Nathans Famous (NASDAQ:NATH) is the #2 top restaurant stock out of 53 with a Zen Rating of A. Stocks with a rating of A have had an average return of +32.52% per year. Learn more.

The Component Grade breakdown for Nathans Famous (NASDAQ:NATH) is: Value: C, Growth: C, Momentum: B, Sentiment: C, Safety: C, Financials: A, and AI: C.

Nathans Famous (NASDAQ:NATH) has a Due Diligence Score of 39, which is 7 points higher than the restaurant industry average of 32.

NATH passed 14 out of 38 due diligence checks and has average fundamentals. Nathans Famous has seen its stock return 51.29% over the past year, overperforming other restaurant stocks by 55 percentage points.

3. Bjs Restaurants (NASDAQ:BJRI)

Bjs Restaurants (NASDAQ:BJRI) 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 Bjs Restaurants (NASDAQ:BJRI) is: Value: C, Growth: B, Momentum: C, Sentiment: B, Safety: C, Financials: C, and AI: C.

Bjs Restaurants (NASDAQ:BJRI) has a Due Diligence Score of 24, which is -8 points lower than the restaurant industry average of 32.

BJRI passed 10 out of 38 due diligence checks and has weak fundamentals. Bjs Restaurants has seen its stock return 2.15% over the past year, overperforming other restaurant stocks by 5 percentage points.

Bjs Restaurants has an average 1 year price target of $37.75, an upside of 13.4% from Bjs Restaurants's current stock price of $33.29.

Bjs Restaurants stock has a consensus Hold recommendation according to Wall Street analysts. Of the 4 analysts covering Bjs Restaurants, 0% have issued a Strong Buy rating, 25% have issued a Buy, 50% have issued a hold, while 0% have issued a Sell rating, and 25% have issued a Strong Sell.

What are the restaurant stocks with highest dividends?

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

1. Bloomin' Brands (NASDAQ:BLMN)

Bloomin' Brands (NASDAQ:BLMN) has an annual dividend yield of 10.85%, which is 8 percentage points higher than the restaurant industry average of 3.16%. Bloomin' Brands's dividend payout is not stable, having dropped more than 10% two times in the last 10 years. Bloomin' Brands's dividend has shown consistent growth over the last 10 years.

Bloomin' Brands's dividend payout ratio of -64.4% indicates that its high dividend yield might not be sustainable for the long-term.

2. Wendy's Co (NASDAQ:WEN)

Wendy's Co (NASDAQ:WEN) has an annual dividend yield of 8%, which is 5 percentage points higher than the restaurant industry average of 3.16%. Wendy's Co's dividend payout is not stable, having dropped more than 10% one 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 105.3% indicates that its high dividend yield might not be sustainable for the long-term.

3. Dine Brands Global (NYSE:DIN)

Dine Brands Global (NYSE:DIN) has an annual dividend yield of 7.68%, which is 5 percentage points higher than the restaurant industry average of 3.16%. Dine Brands Global's dividend payout is not stable, having dropped more than 10% two times in the last 10 years. Dine Brands Global's dividend has not shown consistent growth over the last 10 years.

Dine Brands Global's dividend payout ratio of 48.3% indicates that its high dividend yield is sustainable for the long-term.

Why are restaurant stocks up?

Restaurant stocks were up 0.94% in the last day, and up 1.61% over the last week. Wingstop was the among the top gainers in the restaurants industry, gaining 14.48% yesterday.

Windstop shares are trading higher after the company reported better-than-expected Q1 financial results. Additionally, TD Securities and Stephens & Co. reiterated Overweight ratings on the stock.

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 A. 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 25 points higher than the restaurant industry average of 32. It passed 4 out of 7 valuation due diligence checks.

Dine Brands Global's stock has dropped -54.85% in the past year. It has underperformed other stocks in the restaurant industry by -52 percentage points.

2. Denny's (NASDAQ:DENN)

Denny's (NASDAQ:DENN) 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.

Denny's has a valuation score of 86, which is 54 points higher than the restaurant industry average of 32. It passed 6 out of 7 valuation due diligence checks.

Denny's's stock has dropped -53.99% in the past year. It has underperformed other stocks in the restaurant industry by -51 percentage points.

3. El Pollo Loco Holdings (NASDAQ:LOCO)

El Pollo Loco Holdings (NASDAQ:LOCO) 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.

El Pollo Loco Holdings has a valuation score of 57, which is 25 points higher than the restaurant industry average of 32. It passed 4 out of 7 valuation due diligence checks.

El Pollo Loco Holdings's stock has gained 9.74% in the past year. It has overperformed other stocks in the restaurant industry by 13 percentage points.

Are restaurant stocks a good buy now?

52.78% of restaurant stocks rated by analysts are a buy right now. On average, analysts expect restaurant stocks to rise by 17.46% over the next year.

4.44% of restaurant stocks have a Zen Rating of A (Strong Buy), 0% of restaurant stocks are rated B (Buy), 68.89% are rated C (Hold), 15.56% are rated D (Sell), and 11.11% 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 34.07x.

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.