11 Most Promising Restaurant Stocks to Buy According to Hedge Funds

5. Papa John’s International, Inc. (NASDAQ:PZZA)

Papa John’s International, Inc. (NASDAQ:PZZA) is among the most promising stocks.

TheFly reported on February 27 that Deutsche Bank adjusted its price target for PZZA down to $35 from $45 while retaining a Hold rating on the stock.

Furthermore, Papa John’s International, Inc. (NASDAQ:PZZA) has confirmed that about 200 stores will close in 2026 as part of its efforts to optimize its restaurant portfolio in North America. The company’s larger plan to increase restaurant-level profitability and operational effectiveness includes these closures. It is anticipated that recent measures, such as cost optimization programs and organizational reorganization, will result in company savings of at least $25 million through 2027, with an estimated $13 million in 2026.

Also, by 2028, the business anticipates that supply chain cost savings of at least $60 million will add about 160 basis points to the profitability of both company-owned and franchise restaurants in North America. PZZA established 279 new restaurants worldwide in 2025, 96 in North America and 183 abroad, and system-wide restaurant sales reached $4.92 billion, up 1% from the year before. Adjusted EBITDA was $201.1 million, and net income for the entire year was $32.1 million. The company hopes to improve profitability, fortify its operating base, and foster long-term sustainable growth in 2026 and beyond by proactively managing closures in conjunction with efficiency initiatives.

Papa John’s International, Inc. (NASDAQ:PZZA) is a global pizza delivery and carryout chain known for quality ingredients, customizable pizzas, and digital ordering, operating thousands of locations worldwide.