Sectors & IndustriesConsumer 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.

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:

Biglari Holdings (NYSE:BH) 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 Biglari Holdings (NYSE:BH) is: Value: B, Growth: B, Momentum: C, Sentiment: C, Safety: C, Financials: C, and AI: C.

Biglari Holdings (NYSE:BH) has a Due Diligence Score of 20, which is -9 points lower than the restaurant industry average of 29. Although this number is below the industry average, our proven quant model rates BH as a "B".

BH passed 6 out of 33 due diligence checks and has weak fundamentals. Biglari Holdings has seen its stock return 112.15% over the past year, overperforming other restaurant stocks by 139 percentage points.

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

Bjs Restaurants (NASDAQ:BJRI) has a Due Diligence Score of 22, which is -7 points lower than the restaurant industry average of 29. Although this number is below the industry average, our proven quant model rates BJRI as a "B".

BJRI passed 9 out of 38 due diligence checks and has weak fundamentals. Bjs Restaurants has seen its stock lose -8.44% over the past year, overperforming other restaurant stocks by 18 percentage points.

Bjs Restaurants has an average 1 year price target of $36.50, an upside of 7.48% from Bjs Restaurants's current stock price of $33.96.

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

Arcos Dorados Holdings (NYSE:ARCO) 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 Arcos Dorados Holdings (NYSE:ARCO) is: Value: B, Growth: C, Momentum: D, Sentiment: B, Safety: C, Financials: C, and AI: C.

Arcos Dorados Holdings (NYSE:ARCO) has a Due Diligence Score of 37, which is 8 points higher than the restaurant industry average of 29.

ARCO passed 15 out of 38 due diligence checks and has average fundamentals. Arcos Dorados Holdings has seen its stock lose -18.62% over the past year, overperforming other restaurant stocks by 8 percentage points.

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

Bloomin' Brands (NASDAQ:BLMN) has an annual dividend yield of 10.1%, which is 7 percentage points higher than the restaurant industry average of 3.05%. 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 -1,560% indicates that its high dividend yield might not be sustainable for the long-term.

Wendy's Co (NASDAQ:WEN) has an annual dividend yield of 9.13%, which is 6 percentage points higher than the restaurant industry average of 3.05%. 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 105.3% indicates that its high dividend yield might not be sustainable for the long-term.

Fat Brands (NASDAQ:FAT) has an annual dividend yield of 7.91%, which is 5 percentage points higher than the restaurant industry average of 3.05%. Fat Brands's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Fat Brands's dividend has shown consistent growth over the last 10 years.

Fat Brands's dividend payout ratio of -2.2% indicates that its high dividend yield might not be sustainable for the long-term.

Restaurant stocks were up 0.09% in the last day, and down -5.95% over the last week. Bjs Restaurants was the among the top gainers in the restaurants industry, gaining 18.37% yesterday.

BJ's Restaurants shares are trading higher after Barclays maintained its Underweight rating on the stock and raised its price target from $28 to $30.

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:

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 26 points higher than the restaurant industry average of 31. It passed 4 out of 7 valuation due diligence checks.

Dine Brands Global's stock has dropped -18.79% in the past year. It has overperformed other stocks in the restaurant industry by 8 percentage points.

Brinker International (NYSE:EAT) 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.

Brinker International has a valuation score of 43, which is 12 points higher than the restaurant industry average of 31. It passed 3 out of 7 valuation due diligence checks.

Brinker International's stock has gained 5.79% in the past year. It has overperformed other stocks in the restaurant industry by 33 percentage points.

Denny's (NASDAQ:DENN) 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.

Denny's has a valuation score of 86, which is 55 points higher than the restaurant industry average of 31. It passed 6 out of 7 valuation due diligence checks.

Denny's's stock has dropped -39% in the past year. It has underperformed other stocks in the restaurant industry by -12 percentage points.

48.48% of restaurant stocks rated by analysts are a buy right now. On average, analysts expect restaurant stocks to rise by 30.13% over the next year.

0% of restaurant stocks have a Zen Rating of A (Strong Buy), 4.76% of restaurant stocks are rated B (Buy), 64.29% are rated C (Hold), 23.81% are rated D (Sell), and 7.14% are rated F (Strong Sell).