Sectors & IndustriesConsumer CyclicalRestaurants

Best Restaurant Stocks to Buy Now (2024)

Top restaurant stocks in 2024 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 53, which is 22 points higher than the restaurant industry average of 31. It passed 18 out of 33 due diligence checks and has strong fundamentals. Chipotle Mexican Grill has seen its stock return 55.84% over the past year, overperforming other restaurant stocks by 26 percentage points.

Chipotle Mexican Grill has an average 1 year price target of $3,194.96, a downside of -0.57% from Chipotle Mexican Grill's current stock price of $3,213.43.

Chipotle Mexican Grill stock has a consensus Buy recommendation according to Wall Street analysts. Of the 24 analysts covering Chipotle Mexican Grill, 41.67% have issued a Strong Buy rating, 25% have issued a Buy, 33.33% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Yum China Holdings (NYSE:YUMC) is the second best restaurant stock with a Zen Score of 50, which is 19 points higher than the restaurant industry average of 31. It passed 17 out of 38 due diligence checks and has strong fundamentals. Yum China Holdings has seen its stock lose -35.95% over the past year, underperforming other restaurant stocks by -66 percentage points.

Yum China Holdings has an average 1 year price target of $49.10, an upside of 25.26% from Yum China Holdings's current stock price of $39.20.

Yum China Holdings stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 3 analysts covering Yum China Holdings, 66.67% have issued a Strong Buy rating, 0% have issued a Buy, 33.33% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Cheesecake Factory (NASDAQ:CAKE) is the third best restaurant stock with a Zen Score of 47, which is 16 points higher than the restaurant industry average of 31. It passed 17 out of 38 due diligence checks and has strong fundamentals. Cheesecake Factory has seen its stock return 13.8% over the past year, underperforming other restaurant stocks by -16 percentage points.

Cheesecake Factory has an average 1 year price target of $40.00, an upside of 4.06% from Cheesecake Factory's current stock price of $38.44.

Cheesecake Factory stock has a consensus Hold recommendation according to Wall Street analysts. Of the 11 analysts covering Cheesecake Factory, 18.18% have issued a Strong Buy rating, 18.18% have issued a Buy, 45.45% have issued a hold, while 0% have issued a Sell rating, and 18.18% 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:

Cracker Barrel Old Country Store (NASDAQ:CBRL) has an annual dividend yield of 10.62%, which is 7 percentage points higher than the restaurant industry average of 3.15%. 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 137.9% 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 5.44%, which is 2 percentage points higher than the restaurant industry average of 3.15%. 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 101% indicates that its high dividend yield might not be sustainable for the long-term.

Ark Restaurants (NASDAQ:ARKR) has an annual dividend yield of 5.14%, which is 2 percentage points higher than the restaurant industry average of 3.15%. Ark Restaurants's dividend payout is not stable, having dropped more than 10% one times in the last 10 years. Ark Restaurants's dividend has not shown consistent growth over the last 10 years.

Ark Restaurants's dividend payout ratio of -37.3% indicates that its high dividend yield might not be sustainable for the long-term.

Restaurant stocks were up 0.4% in the last day, and down -0.67% 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:

Rci Hospitality Holdings (NASDAQ:RICK) is the most undervalued restaurant stock based on WallStreetZen's Valuation Score. Rci Hospitality Holdings has a valuation score of 86, which is 56 points higher than the restaurant industry average of 30. It passed 6 out of 7 valuation due diligence checks.

Rci Hospitality Holdings's stock has dropped -35.88% in the past year. It has underperformed other stocks in the restaurant industry by -66 percentage points.

Cracker Barrel Old Country Store (NASDAQ:CBRL) is the second most undervalued restaurant stock based on WallStreetZen's Valuation Score. Cracker Barrel Old Country Store has a valuation score of 86, which is 56 points higher than the restaurant industry average of 30. It passed 6 out of 7 valuation due diligence checks.

Cracker Barrel Old Country Store's stock has dropped -56.22% in the past year. It has underperformed other stocks in the restaurant industry by -86 percentage points.

Bloomin' Brands (NASDAQ:BLMN) is the third most undervalued restaurant stock based on WallStreetZen's Valuation Score. Bloomin' Brands 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.

Bloomin' Brands's stock has dropped -6.76% in the past year. It has underperformed other stocks in the restaurant industry by -37 percentage points.