5 Best Restaurant Stocks to Buy for Growth in 2026

4. Yum! Brands, Inc. (NYSE:YUM)

On March 20, Andrew Charles of TD Cower reiterated his $180 price target on the Yum! Brands, Inc. (NYSE:YUM) stock, along with the Buy rating. The analyst is optimistic about the company’s strong marketing plans and menu innovation. He expressed these views after a meeting with the company’s management.

Andrew believes Taco Bell is the company’s most prized brand and is on track to achieve an average annual unit volume of $3 million by 2030. The company has previously forecast that its beverage segment will become a $5 billion business by 2030. Currently, it stands at around $2.75 billion, so the growth forecast is quite impressive. Here’s what the analyst said about the company’s beverage plans:

Our math suggests a burgeoning and on-trend iced coffee and energy business will grow to $1.2 billion within the 2030 forecast. The target is expected to be reached via a two-pronged strategy, namely Live Mas Cafes within Taco Bell restaurants and exporting strong performing items from the cafes to the overall system.

After reviewing the company’s fourth-quarter results, Bank of America Securities slightly lowered its earnings estimates because it now projects higher expenses at Pizza Hut. Even though it lowered its estimates, BofA still increased its price target from $173 to $178 due to a higher overall market valuation multiple.

Yum! Brands, Inc. (NYSE:YUM) is a developer, franchiser, and operator of quick-service restaurants. The company operates in the Pizza Hut Division, KFC Division,  Habit Burger & Grill Division, and Taco Bell Division. It was founded in 1997 and is based in Louisville, Kentucky.