5 Best Restaurant Stocks to Buy for Growth in 2026

In this article, we will list the 5 best restaurant stocks to buy for growth in 2026. Please visit the 7 best restaurant stocks to buy for growth in 2026 if you would like to see the extended list and the methodology behind it.

5. Texas Roadhouse, Inc. (NASDAQ:TXRH)

Texas Roadhouse, Inc. (NASDAQ:TXRH) is covered by 18 analysts on Wall Street, with an average price target of $197.6. While this does not offer significant upside, the two most recent analyst ratings are much more bullish on the stock. Bank of America Securities reiterated its Buy rating on TXRH on March 11, along with the price target of $216. On 5th March, TD Cowen analyst Andrew Charles had also assigned a $215 price target to the stock. These targets suggest more than 25% upside, reflecting recent positive sentiment about the company’s business.

This sentiment was not as bullish before the earnings announcement on February 19.  Mizuho Securities had warned that beef prices could remain high through at least 2027. According to the analyst, it could put pressure on the company’s profit margin and earnings estimates. The firm believes that higher input costs could limit further expansion in the stock’s valuation.

The comments on the beef prices were also confirmed by the management on the TXRH earnings call:

Our commodity inflation guidance of approximately 7% remains unchanged, with the continued expectation of being above the guidance in the first half of the year and below the guidance in the second half of the year. Beef inflation accounts for nearly all of the expected commodity inflation throughout the year.

Texas Roadhouse, Inc. (NASDAQ:TXRH) is an operator of casual dining restaurants across the United States and globally. The company operates in the Bubba’s 33, Texas Roadhouse, and Other segments. It also franchises and operates restaurants under the Jaggers, Bubba’s 33, and Texas Roadhouse brands.