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:

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

Chagee Holdings (NASDAQ:CHA) has a Due Diligence Score of 51, which is 21 points higher than the restaurant industry average of 30.

CHA passed 18 out of 38 due diligence checks and has strong fundamentals. Chagee Holdings has seen its stock lose -26.22% over the past year, underperforming other restaurant stocks by -3 percentage points.

Chagee Holdings has an average 1 year price target of $13.00, an upside of 6.47% from Chagee Holdings's current stock price of $12.21.

Chagee Holdings stock has a consensus Buy recommendation according to Wall Street analysts. Of the 3 analysts covering Chagee Holdings, 33.33% have issued a Strong Buy rating, 33.33% have issued a Buy, 33.33% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Flanigans Enterprises (NYSEMKT:BDL) 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 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 11 points higher than the restaurant industry average of 30.

BDL passed 14 out of 38 due diligence checks and has strong fundamentals. Flanigans Enterprises has seen its stock return 67.73% over the past year, overperforming other restaurant stocks by 91 percentage points.

Bloomin' Brands (NASDAQ:BLMN) 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 Bloomin' Brands (NASDAQ:BLMN) is: Value: B, Growth: C, Momentum: C, Sentiment: B, Safety: C, Financials: C, and AI: C.

Bloomin' Brands (NASDAQ:BLMN) has a Due Diligence Score of 45, which is 15 points higher than the restaurant industry average of 30.

BLMN passed 16 out of 38 due diligence checks and has strong fundamentals. Bloomin' Brands has seen its stock return 16.42% over the past year, overperforming other restaurant stocks by 40 percentage points.

Bloomin' Brands has an average 1 year price target of $9.32, an upside of 16.37% from Bloomin' Brands's current stock price of $8.01.

Bloomin' Brands stock has a consensus Hold recommendation according to Wall Street analysts. Of the 7 analysts covering Bloomin' Brands, 0% have issued a Strong Buy rating, 0% have issued a Buy, 85.71% have issued a hold, while 0% have issued a Sell rating, and 14.29% have issued a Strong Sell.

Out of 21 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 N/A, which is N/A percentage points lower than the restaurant industry average of 3.08%. 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 46.9% indicates that its dividend yield is sustainable for the long-term.

Chagee Holdings (NASDAQ:CHA) has an annual dividend yield of 7.53%, which is 4 percentage points higher than the restaurant industry average of 3.08%.

Chagee Holdings's dividend payout ratio of 13.2% indicates that its high dividend yield is sustainable for the long-term.

Papa Johns International (NASDAQ:PZZA) has an annual dividend yield of 6.66%, which is 4 percentage points higher than the restaurant industry average of 3.08%. 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.

Restaurant stocks were down -4.88% in the last day, and down -5.94% over the last week. Black Rock Coffee Bar was the among the top losers in the restaurants industry, dropping -14.46% yesterday.

Shares of restaurant companies are trading lower after August's dining foot traffic data showed a 2.4% year-over-year decrease.

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:

Jack In The Box (NASDAQ:JACK) 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.

Jack In The Box has a valuation score of 57, which is 27 points higher than the restaurant industry average of 30. It passed 4 out of 7 valuation due diligence checks.

Jack In The Box's stock has dropped -30.63% in the past year. It has underperformed other stocks in the restaurant industry by -7 percentage points.

Arcos Dorados Holdings (NYSE:ARCO) 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.

Arcos Dorados Holdings has a valuation score of 43, which is 13 points higher than the restaurant industry average of 30. It passed 3 out of 7 valuation due diligence checks.

Arcos Dorados Holdings's stock has gained 14.41% in the past year. It has overperformed other stocks in the restaurant industry by 38 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 41 points higher than the restaurant industry average of 30. It passed 5 out of 7 valuation due diligence checks.

Chagee Holdings's stock has dropped -26.22% in the past year. It has underperformed other stocks in the restaurant industry by -3 percentage points.

35.29% of restaurant stocks rated by analysts are a strong buy right now. On average, analysts expect restaurant stocks to rise by 27.83% 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), 71.79% are rated C (Hold), 10.26% are rated D (Sell), and 0% are rated F (Strong Sell).