11 Most Promising Restaurant Stocks to Buy According to Hedge Funds

4. Cannae Holdings, Inc. (NYSE:CNNE)

Cannae Holdings, Inc. (NYSE:CNNE) is among the most promising stocks.

TheFly reported on February 24 that RBC Capital kept an Outperform rating on CNNE while reducing its price target from $19 to $16 following the company’s fourth-quarter results. The firm noted that management is accelerating a shift in the company’s portfolio toward sports and entertainment assets, although near-term share repurchases are expected to provide less support as a positive catalyst.

The company released its Q4 2025 and full-year 2025 reports on February 23. Financially, Q4 2025 revenue totaled $103 million, down 6% from $110 million in 2024, driven by lower restaurant traffic and nine fewer O’Charley’s locations, partially offset by higher average guest checks and stronger resort revenues. Operating expenses were $127 million, including $12 million in non-cash impairments; excluding these, expenses fell 13%. Net recognized losses decreased $8 million, while equity losses from unconsolidated holdings totaled $69 million, mostly from Alight.

For the full year, CNNE said its revenue declined to $424 million from $453 million, and its operating loss rose to $119 million from $104 million, reflecting non-recurring charges and impairments. Excluding these items, operating expenses dropped approximately 27%. Year-end assets totaled over $1.3 billion against $330 million in liabilities, with $147 million in cash and only $48 million in corporate debt.

Cannae Holdings, Inc. (NYSE:CNNE) is a U.S. diversified holding company that makes strategic investments and actively manages a portfolio of operating businesses to create long‑term shareholder value.