Sectors & IndustriesConsumer CyclicalRestaurants

Best Restaurant Stocks to Buy Now (2025)

Top restaurant stocks in 2025 ranked by overall Due Diligence Score. See the best restaurant stocks to buy now, according to analyst forecasts for the restaurants industry.

According to Due Diligence Score, the 3 best restaurant stocks to buy right now are:

Rave Restaurant Group (NASDAQ:RAVE) is the top restaurant stock with a Due Diligence Score of 60, which is 29 points higher than the restaurant industry average of 31. It passed 19 out of 33 due diligence checks and has strong fundamentals. Rave Restaurant Group has seen its stock return 30.35% over the past year, overperforming other restaurant stocks by 21 percentage points.

Wingstop (NASDAQ:WING) is the second best restaurant stock with a Due Diligence Score of 55, which is 24 points higher than the restaurant industry average of 31. It passed 22 out of 38 due diligence checks and has strong fundamentals. Wingstop has seen its stock lose -0.21% over the past year, underperforming other restaurant stocks by -10 percentage points.

Wingstop has an average 1 year price target of $384.30, an upside of 40.81% from Wingstop's current stock price of $272.92.

Wingstop stock has a consensus Buy recommendation according to Wall Street analysts. Of the 10 analysts covering Wingstop, 50% have issued a Strong Buy rating, 10% have issued a Buy, 40% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Dutch Bros (NYSE:BROS) is the third best restaurant stock with a Due Diligence Score of 54, which is 23 points higher than the restaurant industry average of 31. It passed 19 out of 33 due diligence checks and has strong fundamentals. Dutch Bros has seen its stock return 112.38% over the past year, overperforming other restaurant stocks by 103 percentage points.

Dutch Bros has an average 1 year price target of $61.44, an upside of 2.92% from Dutch Bros's current stock price of $59.70.

Dutch Bros stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 9 analysts covering Dutch Bros, 66.67% have issued a Strong Buy rating, 22.22% have issued a Buy, 11.11% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Out of 22 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 8.5%, which is 6 percentage points higher than the restaurant industry average of 2.92%. Bloomin' Brands's dividend payout is not stable, having dropped more than 10% one 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 -9,600% 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 6.85%, which is 4 percentage points higher than the restaurant industry average of 2.92%. 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.

Dine Brands Global (NYSE:DIN) has an annual dividend yield of 5.74%, which is 3 percentage points higher than the restaurant industry average of 2.92%. 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 34% indicates that its high dividend yield is sustainable for the long-term.

Restaurant stocks were up 0.08% in the last day, and up 0.46% over the last week.

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

Based on WallStreetZen's Valuation Score, the 3 most undervalued restaurant stocks right now are:

Rave Restaurant Group (NASDAQ:RAVE) is the most undervalued restaurant stock based on WallStreetZen's Valuation Score. Rave Restaurant Group has a valuation score of 71, which is 41 points higher than the restaurant industry average of 30. It passed 5 out of 7 valuation due diligence checks.

Rave Restaurant Group's stock has gained 30.35% in the past year. It has overperformed other stocks in the restaurant industry by 21 percentage points.

Potbelly (NASDAQ:PBPB) is the second most undervalued restaurant stock based on WallStreetZen's Valuation Score. Potbelly has a valuation score of 71, which is 41 points higher than the restaurant industry average of 30. It passed 5 out of 7 valuation due diligence checks.

Potbelly's stock has dropped -18.68% in the past year. It has underperformed other stocks in the restaurant industry by -28 percentage points.

Wendy's Co (NASDAQ:WEN) is the third most undervalued restaurant stock based on WallStreetZen's Valuation Score. Wendy's Co has a valuation score of 71, which is 41 points higher than the restaurant industry average of 30. It passed 5 out of 7 valuation due diligence checks.

Wendy's Co's stock has dropped -23.52% in the past year. It has underperformed other stocks in the restaurant industry by -33 percentage points.