In this article, we will be taking a look at the 11 Most Promising Restaurant Stocks to Buy According to Hedge Funds.

In 2026, the global restaurant business will be a size, technology, and value-driven market that offers investors both fundamental transformation and robust demand. The global market for foodservice restaurants reached about $2.66 trillion in 2025 and is expected to grow at a 5% CAGR until 2032, when it will reach $3.74 trillion. Rising urbanization, digital ordering, and continuous format innovation in quick-service, full-service, and specialty ideas all promote this.

Internet meal delivery is predicted to increase from about $31.91 billion in 2024 to $74.03 billion by 2033 in the US alone. In this situation, delivery, digital ordering, and off-premise eating remain significant demand channels rather than transient epidemic artifacts.

The primary source of income and a center for innovation is still the United States. Restaurant and foodservice revenues in the United States are expected to hit a new nominal high of $1.5 trillion in 2025, employing 15.9 million people by year’s end and creating around 200,000 net new jobs.

Within that, full-service restaurants were expected to make about $522 billion in 2025, which is somewhat less than limited-service restaurants (QSR/fast service). This shows a continuous mix change toward convenience and value. Due to scale purchasing, digital channels, and loyalty programs, chains are consolidating their market dominance. The top 500 chains generated over $452 billion in 2024, or almost 60% of restaurant sales in the United States, and they continue to exceed small businesses.

Changes in the US restaurant business are allegedly being driven by digitalization and changing consumer behavior. The majority of restaurant traffic now comes from off-premise dining like takeout and delivery, but fast-casual and limited service businesses are expanding due to their quickness, affordability, and convenience. Even though many customers are looking for value options and less priced proteins like chicken, full-service restaurants emphasize ambiance and experiences to justify higher rates.

With that being said, let’s take a look at the most promising stocks.

Our Methodology

We used screeners to identify stocks with an average upside potential of at least 15%, and limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).

Here is our list of 11 most promising restaurant stocks to buy now.

11. Reborn Coffee, Inc. (NASDAQ:REBN)

Reborn Coffee, Inc. (NASDAQ:REBN) is one of the most promising stocks. 

TheFly reported on February 24 that REBN announced a distribution agreement with Sysco Corporation aimed at supporting the company’s expansion of its franchise network across the United States. Through this collaboration, Reborn Coffee, Inc. (NASDAQ:REBN) will utilize Sysco’s extensive logistics network, ordering systems, and service platform to strengthen supply chain efficiency and ensure more reliable product delivery throughout its locations.

The arrangement is designed to simplify procurement processes for franchise stores while improving operational consistency across the brand’s growing footprint. In addition, the partnership will give REBN access to Sysco’s quality control resources, food safety standards, sourcing support, and operational tools, which are expected to enhance store performance and help maintain consistent execution across the company’s system.

On February 12, REBN updated on Reborn Logistics, its wholly owned subsidiary supporting the company’s supply chain and expansion. In Q4 2025, Reborn Logistics posted preliminary revenue of $2.5 million and operating income of $0.6 million. The subsidiary has focused on cost management and process standardization to improve efficiency as volumes grow. Management expects 2026 revenue of about $15 million and operating income of $1.5 million. The logistics platform is central to REBN’s strategy, enabling scalable growth and a more integrated supply chain.

Reborn Coffee, Inc. (NASDAQ:REBN) is a U.S. specialty coffee retailer and franchisor offering high‑quality roasted coffee and café experiences through retail locations, kiosks, and an expanding franchise network. The company focuses on global growth and innovative coffee products.

10. Red Robin Gourmet Burgers, Inc. (NASDAQ:RRGB)

Red Robin Gourmet Burgers, Inc. (NASDAQ:RRGB) is among the most promising restaurant stocks.

TheFly reported on February 25 that RRGB released its earnings call for the twelve weeks and fifty-two weeks ended December 28, 2025. The report states that the company’s full-year revenues were $1,210.2 million compared to $1,248.6 million in 2024, and its overall revenues for Q4 2025 were $269.0 million, down from $285.2 million a year earlier. Revenues from restaurants totaled $1,189.8 million for the year and $263.8 million for the fourth quarter. Comparable restaurant revenue decreased by 3.1% in Q4 and 0.7% overall; decreases were 3.3% and 0.3%, respectively, when deferred loyalty revenue was excluded.

Additionally, Red Robin Gourmet Burgers, Inc. (NASDAQ:RRGB) stated that its operating income was $2.8 million for the entire year, or 0.2% of revenues, and $4.0 million in Q4, or 1.5% of total revenues. With margins of 11.4% and 12.7%, restaurant-level operating profit was $30.2 million in Q4 and $151.5 million for the entire year. In Q4, the net loss was $10.1 million, and in 2025, it was $23.3 million. Adjusted EBITDA improved by 53% over 2024 to $11.8 million in Q4 and $69.7 million for the year.

For 2026, the corporation’s guidance includes comparable restaurant revenue growth of 0.5%–1.5%, restaurant-level operating profit of approximately 13.0%, adjusted EBITDA of $70–73 million, and capital expenditures of $25–30 million.

Red Robin Gourmet Burgers, Inc. (NASDAQ:RRGB) is a U.S. casual dining chain known for gourmet burgers, bottomless steak fries, salads, and brews, operating over 500 restaurants across the United States and Canada.