Top 3 Picks
2026 Outlook
The restaurant sector is poised for moderate growth through 2026, driven by trends such as increased adoption of technology for order management and personalized experiences, which could boost margins by 2-4% annually. Analysts project a 5-7% CAGR in the U.S. market, fueled by rising demand for health-focused and sustainable menu options amid shifting consumer preferences. However, potential challenges like supply chain volatility and regulatory changes may temper expansion, but overall, the sector's adaptability positions it for sustained profitability by 2026.
Complete Rankings
| Rank | Stock | Score | Price | Market Cap |
|---|---|---|---|---|
|
1
|
Chipotle Mexican Grill, Inc.
|
65.8 | $37.49 | $52.3B |
|
2
|
CAVA Group, Inc.
|
65.1 | $60.55 | $7.2B |
|
3
|
Cracker Barrel Old Country Store, Inc,.
|
63.9 | $26.85 | $966M |
|
4
|
Portillo's Inc. Class A Common Stock
|
63.9 | $4.59 | $463M |
|
5
|
DENNY'S CORP
|
62.0 | $6.21 | $267M |
|
6
|
Cheesecake Factory (The)
|
60.3 | $52.81 | $2.7B |
|
7
|
Potbelly Corporation Common Stock
|
60.0 | -- | $516M |
|
8
|
Nathan's Famous Inc
|
59.0 | $91.99 | $454M |
|
9
|
Papa John's International Inc
|
58.2 | $40.30 | $1.6B |
|
10
|
BJ's Restaurants, Inc.
|
58.0 | $41.09 | $676M |
|
11
|
Darden Restaurants, Inc.
|
58.0 | $187.21 | $22.4B |
|
12
|
Texas Roadhouse, Inc.
|
58.0 | $171.36 | $10.8B |
|
13
|
Restaurant Brands International Inc.
|
57.8 | $67.81 | $21.7B |
|
14
|
Yum! Brands, Inc.
|
57.4 | $150.49 | $42.5B |
|
15
|
Bloomin' Brands, Inc. Common Stock
|
57.3 | $6.38 | $605M |
In-Depth Analysis: Top Restaurants Stocks
CMG
Chipotle Mexican Grill is the largest fast-casual chain restaurant in the United States, with systemwide sales of $11.3 billion in 2024. The Mexican concept is almost exclusively company-owned, with just three license stores operated through a master franchise relationship with Alshaya Group in the Middle East. It had a footprint of 3,726 stores at the end of 2024, heavily indexed …
Chipotle Mexican Grill stands out as the largest fast-casual chain in the Restaurants sector, generating $11.3 billion in systemwide sales in 2024, which underscores its dominant market position and influence on consumer trends toward healthier, customizable fast-casual dining. Its nearly exclusive company-owned model, with only three licensed stores, ensures tight control over operations and brand consistency, setting a benchmark for quality and efficiency in the industry.
Chipotle's 13.0% profit margin reflects solid operational efficiency in a competitive restaurant landscape, while its 45.0% ROE highlights exceptional returns on equity, indicating effective use of shareholder investments. Combined with 7.5% revenue growth, these metrics demonstrate robust financial health and the company's ability to sustain profitability amid economic fluctuations.
Chipotle's strong 7.5% revenue growth and 45.0% ROE suggest continued momentum into 2026, driven by its market leadership in fast-casual dining and potential for international expansion. The company's efficient company-owned model supports scalability and margin improvements, making it attractive for investors seeking growth in the recovering restaurant sector. With a P/E ratio of 32.8, the stock offers compelling value given its historical performance and innovation in menu and digital strategies.
CAVA
Cava Group Inc owns and operates a chain of restaurants. It is the category-defining Mediterranean fast-casual restaurant brand, bringing together healthful food and bold, satisfying flavors at scale. The company's dips, spreads, and dressings are centrally produced and sold in grocery stores. The company's operations are conducted as two reportable segments: CAVA and Zoes Kitchen. The company generates all of …
CAVA Group Inc. matters in the Restaurants sector as a category-defining brand in Mediterranean fast-casual dining, emphasizing healthful ingredients and bold flavors that cater to growing consumer demand for nutritious options. Its strategic expansion into grocery stores with centrally produced dips, spreads, and dressings diversifies revenue streams and positions it as a versatile player in both dining and retail markets.
CAVA's profit margin of 12.1% indicates efficient cost management and strong operational profitability, while its ROE of 19.8% reflects effective use of shareholder equity to generate returns. Combined with a revenue growth rate of 19.9%, these metrics highlight the company's robust financial health and potential for sustained expansion in a competitive sector.
CAVA's 19.9% revenue growth demonstrates strong consumer demand for its health-focused Mediterranean offerings, making it an attractive investment for 2026 as the fast-casual segment continues to expand. With a P/E ratio of 50.3 signaling high market expectations for future earnings and an ROE of 19.8% underscoring efficient profitability, the company is well-positioned to capitalize on its grocery store expansion and innovative product lines for increased market share.
CBRL
Cracker Barrel Old Country Store Inc operates hundreds of full-service restaurants throughout the United States. The Cracker Barrel stores consists of a restaurant with a gift shop. The restaurants serve breakfast, lunch and dinner. The gift shop offers a variety of decorative and functional items specializing in rocking chairs, holiday gifts, toys, apparel and foods.
Cracker Barrel Old Country Store Inc. matters in the Restaurants sector as a leading operator of over 600 full-service restaurants combined with retail gift shops across the United States, offering a unique blend of homestyle meals and Americana-themed merchandise that differentiates it from competitors. This integrated model appeals to families and tourists, contributing to its established market presence and resilience in a competitive dining landscape.
Cracker Barrel's profitability is weak, with a profit margin of just 0.5% and a return on equity of 3.9%, indicating limited efficiency in converting revenue into profits and utilizing shareholder equity effectively. Despite a -5.7% revenue growth signaling recent declines, the P/E ratio of 33.8 suggests investor optimism for potential future earnings recovery, though overall financial health remains strained based on these metrics.
By 2026, investors should consider buying CBRL stock due to potential sector recovery and economic stabilization, as the Tradestie Score of 63.9 indicates moderate investment appeal amid possible operational improvements. The high P/E ratio of 33.8 reflects market expectations for growth through initiatives like menu innovations or digital enhancements, which could reverse the -5.7% revenue decline and boost profitability. Additionally, Cracker Barrel's strong brand loyalty and nationwide footprint position it for long-term gains as consumer spending on experiential dining rebounds.
PTLO
Portillos Inc serves the Chicago street food industry through high-energy and multichannel restaurants designed to ignite the senses and create memorable dining experiences. It owns and operates fast-casual restaurants in the United States, along with two food production commissaries in Illinois. Its menu includes hot dogs, beef and sausage sandwiches, sandwiches and ribs, salads, burgers, chicken, Barnelli's pasta, sides and …
Portillo's Inc. Class A Common Stock is a key player in the Restaurants sector with a Tradestie Score of 63.9.
The company maintains a solid financial position in the competitive Restaurants landscape.
With a score of 63.9, PTLO ranks among the top Restaurants stocks for 2026. Investors may find value in its market position and growth potential.
DENN
Denny's Corp is America's franchised full-service restaurant chains based on the number of restaurants. The company owns and operates the Denny's brand and the Keke's Breakfast Cafe brand. It provides Pancakes, Appetizers & Soups, Sandwiches & Salads, Breakfast Melts, Omelets, and others. The company generates its revenue from two sources: the sale of food and beverages and the collection of …
Denny's Corp is a leading franchised full-service restaurant chain in the U.S., distinguished by its extensive network and iconic brand that caters to everyday consumers with affordable, diverse menu options like pancakes and omelets. Its ownership of the Keke's Breakfast Cafe brand further enhances its market position by diversifying into specialized breakfast segments, making it a key player in the competitive restaurants sector.
Denny's exhibits modest profitability with a profit margin of 2.2%, which reflects the slim margins typical in the restaurant industry amid high operational costs. Its revenue growth of 1.3% and a P/E ratio of 31.0 suggest limited recent expansion and potential overvaluation relative to earnings, while the Tradestie Score of 62.0 indicates moderate overall financial health that warrants cautious optimism.
By 2026, Denny's franchising model could drive steady revenue from franchise fees, potentially accelerating growth beyond the current 1.3% as consumer dining trends recover and the company expands its Keke's Breakfast Cafe brand. The stock's P/E ratio of 31.0 may be justified if operational efficiencies improve, leading to margin expansion from the current 2.2%. Additionally, with a Tradestie Score of 62.0 signaling moderate potential, investors could benefit from Denny's established market presence and adaptability in the evolving restaurants sector.
CAKE
Cheesecake Factory Inc owns and operates restaurants in the United States and Canada under brands that include The Cheesecake Factory, North Italia, and a collection within the Fox Restaurants Concepts subsidiary. The company's international presence, in the Middle East and Mexico, is through licensing agreements with third parties. The company also has a bakery division that produces cheesecakes and other …
Cheesecake Factory matters in the Restaurants sector due to its diversified portfolio of brands, including The Cheesecake Factory and North Italia, which appeal to a wide range of dining preferences and drive customer loyalty. Its international presence through licensing in the Middle East and Mexico positions it as a key player with scalable growth potential in global markets.
Cheesecake Factory's 4.3% profit margin reflects moderate efficiency in a competitive sector, while its 39.1% ROE highlights strong returns on equity, indicating effective management of shareholder investments. Combined with 4.8% revenue growth and a P/E ratio of 15.2, these metrics suggest a stable financial health with room for sustained profitability.
Investors should consider buying CAKE stock in 2026 due to its consistent 4.8% revenue growth, which signals ongoing expansion amid sector recovery. The impressive 39.1% ROE demonstrates the company's ability to generate high returns on equity, potentially leading to increased shareholder value. Additionally, with a P/E ratio of 15.2, the stock is reasonably valued for its earnings potential, supported by a diversified brand portfolio that could capitalize on rising global dining trends.
PBPB
Potbelly Corp owns and franchises hundreds of limited-service restaurants specializing in sandwiches and salads, shakes. The menu includes toasty sandwiches, signature salads, soups, chili, sides, desserts, and, in breakfast locations it serves breakfast sandwiches and steel-cut oatmeal. majority of its locations are company-owned and located in the United States, with Illinois and Texas housing far more locations than any other …
Potbelly Corporation stands out in the Restaurants sector as a fast-casual chain specializing in customizable toasty sandwiches, salads, and shakes, catering to health-conscious consumers seeking affordable, quality meals. Its franchise model enables scalable growth, with hundreds of locations across the U.S., positioning it as a niche player in the competitive limited-service market.
With a Tradestie Score of 60.0/100, Potbelly exhibits moderate financial health, indicating potential stability in operations despite limited available financial data that may obscure deeper profitability metrics. This score suggests the company maintains a balanced approach to revenue generation and cost management in the volatile restaurant industry.
By 2026, Potbelly's expansion of franchise locations could capitalize on growing demand for quick-service dining options amid post-pandemic recovery, potentially boosting revenue through increased foot traffic and menu innovations. The company's focus on signature items like toasty sandwiches and salads aligns with consumer trends toward healthier fast-casual choices, enhancing customer loyalty and market share. Additionally, with a Tradestie Score of 60.0/100, the stock may offer value for investors betting on sector rebound and operational efficiencies driving earnings growth.
NATH
Nathan's Famous Inc is an owner of fast food franchises in the United States. The company's reportable segment includes the Branded Product Program, Product licensing, Restaurant operations and Corporate. Branded Product Program derives revenue principally from the sale of hot dog products either directly to foodservice operators or to various foodservice distributors who resell the products to foodservice operators. It …
Nathan's Famous Inc stands out in the Restaurants sector as a niche leader in fast food franchising, particularly for its iconic hot dogs, with diversified revenue streams from its Branded Product Program, product licensing, and restaurant operations that contribute to market innovation and consumer variety. This focus on branded products, generating principal revenue from hot dog sales, positions the company as a key player in the U.S. fast food landscape amid growing demand for quick-service options.
Nathan's Famous demonstrates strong financial health with a 14.7% profit margin, indicating efficient cost management and solid earnings relative to peers in the Restaurants sector. Additionally, the company's 11.1% revenue growth and a P/E ratio of 17.5 suggest sustainable profitability and reasonable valuation, supported by its diversified operations that mitigate sector-specific risks.
With a robust 11.1% revenue growth driven by its Branded Product Program and restaurant expansions, Nathan's Famous is well-positioned for continued market share gains in the evolving fast food industry by 2026. The 14.7% profit margin underscores operational efficiency, potentially leading to enhanced shareholder returns amid rising consumer preferences for branded fast food. Furthermore, the stock's P/E ratio of 17.5 indicates undervaluation relative to growth prospects, making it an appealing investment for those targeting sector recovery and expansion opportunities in 2026.
PZZA
Papa John's is one of the largest players in the global QSR, or quick-service restaurant, pizza market, boasting more than 6,000 restaurants across nearly 50 countries at the end of 2024. The firm operates a predominantly franchised system, owning 9% of its restaurants and generating revenue from franchise royalties, sales of pizza and related products at its company-owned stores, and …
Papa John's matters in the Restaurants sector as a leading global QSR pizza chain with over 6,000 restaurants across nearly 50 countries, enabling significant market presence and brand recognition. Its predominantly franchised model, where it owns only 9% of restaurants, allows for efficient expansion and revenue generation through franchise fees without heavy capital investment.
Papa John's exhibits low profitability with a profit margin of just 1.8%, indicating tight margins in a competitive QSR environment that may pressure financial health. Despite this, the company's revenue growth of 0.3% and a P/E ratio of 34.2 reflect modest sales progression and high market expectations for future earnings potential.
Investors should consider buying PZZA in 2026 due to its extensive global footprint of over 6,000 restaurants, which provides a strong foundation for capturing growth in the recovering QSR pizza market. The franchised model ensures steady revenue from fees and royalties, minimizing operational risks and supporting long-term profitability. Additionally, with a Tradestie Score of 58.2, the stock offers a moderate entry point amid potential trends like digital ordering and international expansion driving demand.
BJRI
BJ's Restaurants Inc is involved in the business of owning and operating restaurants. The company operates in a single operating segment that is full-service company-owned restaurants. It has geographic presence only in the United States of America.
BJ's Restaurants matters in the Restaurants sector due to its focus on full-service, company-owned restaurants across the United States, offering a diverse menu that caters to casual dining preferences and drives consistent foot traffic. As a pure-play operator in the US market, it provides valuable insights into sector trends like consumer spending and operational efficiency amid competitive pressures.
BJ's Restaurants exhibits modest profitability with a 2.2% profit margin, indicating tight cost controls in a competitive environment, while its 8.4% ROE reflects reasonable returns on equity for reinvestment. However, the 1.4% revenue growth and a high P/E ratio of 28.9 suggest potential vulnerabilities in scaling operations and sustaining earnings growth.
By 2026, BJ's Restaurants could benefit from an economic recovery, potentially accelerating revenue growth beyond the current 1.4% as dining trends normalize and the company expands its US footprint. The 8.4% ROE indicates underlying operational strength that could lead to margin improvements and higher earnings, making the stock attractive at a P/E of 28.9 if market conditions favor consumer spending increases.
Methodology
Stocks are ranked using the Tradestie Score, a proprietary 0-100 rating that combines fundamental quality (profitability, balance sheet strength), growth metrics (revenue and earnings growth), valuation (P/E, PEG ratio), and momentum factors. Scores are updated daily based on the latest market data. Learn more about our methodology.