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Best Restaurant Stocks to Buy Now (2023)

Top restaurant stocks in 2023 ranked by overall Zen Score. See the best restaurant stocks to buy now, according to analyst forecasts for the restaurants industry.

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

Chipotle Mexican Grill (NYSE:CMG) is the top restaurant stock with a Zen Score of 60, which is 29 points higher than the restaurant industry average of 31. It passed 21 out of 33 due diligence checks and has strong fundamentals. Chipotle Mexican Grill has seen its stock return 3.72% over the past year, overperforming other restaurant stocks by 3 percentage points.

Chipotle Mexican Grill has an average 1 year price target of $1,861.76, an upside of 14.62% from Chipotle Mexican Grill's current stock price of $1,624.25.

Chipotle Mexican Grill stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 21 analysts covering Chipotle Mexican Grill, 42.86% have issued a Strong Buy rating, 38.1% have issued a Buy, 19.05% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Rave Restaurant Group (NASDAQ:RAVE) is the second best restaurant stock with a Zen Score of 58, which is 27 points higher than the restaurant industry average of 31. It passed 18 out of 33 due diligence checks and has strong fundamentals. Rave Restaurant Group has seen its stock return 35.85% over the past year, overperforming other restaurant stocks by 35 percentage points.

Bloomin' Brands (NASDAQ:BLMN) is the third best restaurant stock with a Zen Score of 48, which is 17 points higher than the restaurant industry average of 31. It passed 18 out of 38 due diligence checks and has strong fundamentals. Bloomin' Brands has seen its stock return 17.42% over the past year, overperforming other restaurant stocks by 16 percentage points.

Bloomin' Brands has an average 1 year price target of $28.56, an upside of 14.5% from Bloomin' Brands's current stock price of $24.94.

Bloomin' Brands stock has a consensus Buy recommendation according to Wall Street analysts. Of the 9 analysts covering Bloomin' Brands, 33.33% have issued a Strong Buy rating, 11.11% have issued a Buy, 55.56% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Out of 24 restaurant stocks that have issued dividends in the past year, the 3 restaurant stocks with the highest dividend yields are:

Fat Brands (NASDAQ:FAT) has an annual dividend yield of 5.66%, which is 3 percentage points higher than the restaurant industry average of 2.44%. 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 -5.4% indicates that its high dividend yield might not be sustainable for the long-term.

Cracker Barrel Old Country Store (NASDAQ:CBRL) has an annual dividend yield of 4.62%, which is 2 percentage points higher than the restaurant industry average of 2.44%. Cracker Barrel Old Country Store's dividend payout is not stable, having dropped more than 10% five times in the last 10 years. Cracker Barrel Old Country Store's dividend has shown consistent growth over the last 10 years.

Cracker Barrel Old Country Store's dividend payout ratio of 108.1% indicates that its dividend yield might not be sustainable for the long-term.

Flanigans Enterprises (NYSEMKT:BDL) has an annual dividend yield of 3.6%, which is 1 percentage points higher than the restaurant industry average of 2.44%. Flanigans Enterprises's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Flanigans Enterprises's dividend has shown consistent growth over the last 10 years.

Flanigans Enterprises's dividend payout ratio of 34.5% indicates that its dividend yield is sustainable for the long-term.

Restaurant stocks were down -0.37% in the last day, and up 0.46% over the last week.

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

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

Ark Restaurants (NASDAQ:ARKR) is the most undervalued restaurant stock based on WallStreetZen's Valuation Score. Ark Restaurants has a valuation score of 100, which is 64 points higher than the restaurant industry average of 36. It passed 7 out of 7 valuation due diligence checks.

Ark Restaurants's stock has dropped -0.5% in the past year. It has underperformed other stocks in the restaurant industry by -2 percentage points.

Rave Restaurant Group (NASDAQ:RAVE) is the second most undervalued restaurant stock based on WallStreetZen's Valuation Score. Rave Restaurant Group has a valuation score of 86, which is 50 points higher than the restaurant industry average of 36. It passed 6 out of 7 valuation due diligence checks.

Rave Restaurant Group's stock has gained 35.85% in the past year. It has overperformed other stocks in the restaurant industry by 35 percentage points.

Dave & Buster's Entertainment (NASDAQ:PLAY) is the third most undervalued restaurant stock based on WallStreetZen's Valuation Score. Dave & Buster's Entertainment has a valuation score of 86, which is 50 points higher than the restaurant industry average of 36. It passed 6 out of 7 valuation due diligence checks.

Dave & Buster's Entertainment's stock has dropped -19.63% in the past year. It has underperformed other stocks in the restaurant industry by -21 percentage points.