Sectors & IndustriesConsumer 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 +28.50% 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:

Flanigans Enterprises (NYSEMKT:BDL) 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 +28.5% per year. Learn more.

The Component Grade breakdown for Flanigans Enterprises (NYSEMKT:BDL) is: Value: B, Growth: B, Momentum: C, Sentiment: C, Safety: C, Financials: C, and AI: C.

Flanigans Enterprises (NYSEMKT:BDL) has a Due Diligence Score of 41, which is 12 points higher than the restaurant industry average of 29.

BDL passed 14 out of 38 due diligence checks and has strong fundamentals. Flanigans Enterprises has seen its stock return 39.33% over the past year, overperforming other restaurant stocks by 63 percentage points.

Chagee Holdings (NASDAQ:CHA) is the #2 top restaurant stock out of 53 with a Zen Rating of B. Stocks with a rating of B have had an average return of +17.17% per year. Learn more.

The Component Grade breakdown for Chagee Holdings (NASDAQ:CHA) is: Value: B, Growth: C, Momentum: C, Sentiment: B, Safety: C, Financials: B, and AI: C.

Chagee Holdings (NASDAQ:CHA) has a Due Diligence Score of 51, which is 22 points higher than the restaurant industry average of 29.

CHA passed 18 out of 38 due diligence checks and has strong fundamentals. Chagee Holdings has seen its stock lose -53.79% over the past year, underperforming other restaurant stocks by -30 percentage points.

Chagee Holdings has an average 1 year price target of $13.00, an upside of 29.87% from Chagee Holdings's current stock price of $10.01.

Chagee Holdings stock has a consensus Buy recommendation according to Wall Street analysts. Of the 2 analysts covering Chagee Holdings, 50% have issued a Strong Buy rating, 0% have issued a Buy, 50% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Noodles & Co (NASDAQ:NDLS) is the #3 top restaurant stock out of 53 with a Zen Rating of B. Stocks with a rating of B have had an average return of +17.17% per year. Learn more.

The Component Grade breakdown for Noodles & Co (NASDAQ:NDLS) is: Value: C, Growth: C, Momentum: B, Sentiment: A, Safety: B, Financials: C, and AI: C.

Noodles & Co (NASDAQ:NDLS) has a Due Diligence Score of 4, which is -25 points lower than the restaurant industry average of 29. Although this number is below the industry average, our proven quant model rates NDLS as a "B".

NDLS passed 1 out of 33 due diligence checks and has weak fundamentals. Noodles & Co has seen its stock return 86.7% over the past year, overperforming other restaurant stocks by 110 percentage points.

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

Chagee Holdings (NASDAQ:CHA) has an annual dividend yield of 9.19%, which is 6 percentage points higher than the restaurant industry average of 2.96%.

Chagee Holdings's dividend payout ratio of 18.9% indicates that its high dividend yield is sustainable for the long-term.

Papa Johns International (NASDAQ:PZZA) has an annual dividend yield of 7.64%, which is 5 percentage points higher than the restaurant industry average of 2.96%. 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 227.2% 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 6.47%, which is 4 percentage points higher than the restaurant industry average of 2.96%. 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 84.8% indicates that its high dividend yield is sustainable for the long-term.

Restaurant stocks were up 2.79% in the last day, and up 0.21% over the last week. Black Rock Coffee Bar was the among the top gainers in the restaurants industry, gaining 19.1% yesterday.

Black Rock Coffee Bar shares are trading higher after the company reaffirmed its FY2026 sales guidance.

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:

Arcos Dorados Holdings (NYSE:ARCO) 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.

Arcos Dorados Holdings has a valuation score of 43, which is 19 points higher than the restaurant industry average of 24. It passed 3 out of 7 valuation due diligence checks.

Arcos Dorados Holdings's stock has gained 13.67% in the past year. It has overperformed other stocks in the restaurant industry by 37 percentage points.

Jack In The Box (NASDAQ:JACK) 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.

Jack In The Box has a valuation score of 57, which is 33 points higher than the restaurant industry average of 24. It passed 4 out of 7 valuation due diligence checks.

Jack In The Box's stock has gained 12.6% in the past year. It has overperformed other stocks in the restaurant industry by 36 percentage points.

Chagee Holdings (NASDAQ:CHA) 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.

Chagee Holdings has a valuation score of 71, which is 47 points higher than the restaurant industry average of 24. It passed 5 out of 7 valuation due diligence checks.

Chagee Holdings's stock has dropped -53.79% in the past year. It has underperformed other stocks in the restaurant industry by -30 percentage points.

42.42% of restaurant stocks rated by analysts are a buy right now. On average, analysts expect restaurant stocks to rise by 9.81% over the next year.

2.56% of restaurant stocks have a Zen Rating of A (Strong Buy), 15.38% of restaurant stocks are rated B (Buy), 61.54% are rated C (Hold), 17.95% are rated D (Sell), and 2.56% are rated F (Strong Sell).