In this article, we will take a look at the high-growth restaurant stocks for 2026.
In a market characterized by changing customer preferences, investors are asking the big question: which sector to invest in? While investors previously focused on technology and AI-driven stocks, they are now shifting more towards consumer-oriented businesses. Against this backdrop, some restaurant stocks appear to be strong investment opportunities.
According to a report by the National Restaurant Association, titled “State of the Restaurant Industry 2026,” the restaurant industry is well-positioned for growth in 2026 due to a rise in sales and solid pent-up demand to dine out. Published on February 11, the report outlines that consumer spending is projected to accelerate industry sales to roughly $1.55 trillion nationwide, with approximately 1.3% real (inflation-adjusted) gains. Additionally, the preference for dining out will further drive growth.
The report adds that this surge will bring total industry employment to 15.8 million, with nearly 100,000 jobs added. The operators say they are pursuing technology investments to boost efficiency and support guest connections, the publication states.
With this in mind, we have compiled a list of 8 high-growth restaurant stocks for 2026.
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Our Methodology
For this article, we began by filtering for stocks in the restaurant industry with a market capitalization of over $1 billion. Next, we shortlisted stocks with an EPS growth this year of more than 10%. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are then ranked by the number of hedge fund holdings, based on Insider Monkey’s database, as of Q4 2025.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
8. The Cheesecake Factory Incorporated (NASDAQ:CAKE)
The Cheesecake Factory Incorporated (NASDAQ:CAKE) is among the 8 High-Growth Restaurant Stocks for 2026. On March 3, The Cheesecake Factory Incorporated (NASDAQ:CAKE) participated in the 47th Annual Raymond James Institutional Investor Conference, highlighting its strategic emphasis on experiential dining and strong growth plans. The company outlined its wide range of restaurant portfolio and solid financial performance, in addition to addressing challenges in sustaining its competitive edge in an evolving market.
With a target of 7% annual unit growth, The Cheesecake Factory Incorporated (NASDAQ:CAKE) is set to open up to 26 new restaurants in 2026. Management also pointed to the Cheesecake Rewards program, which has outperformed expectations, and disclosed plans for a mobile app launch in the second quarter. While anticipating $3.9 billion in total revenue for 2026, the company is set to add $5 billion in revenue over the long term. Furthermore, capital expenditures are planned at $210 million to back the company’s unit development and maintenance efforts.
Back on February 20, UBS lifted the price target on The Cheesecake Factory Incorporated (NASDAQ:CAKE) to $53, up from $50, and maintained a Sell rating. The firm believes the company’s plans to develop up to 26 new units in 2026 look well within reach amid its current development trajectory.
The Cheesecake Factory Incorporated (NASDAQ:CAKE) is a California-based company operating bakeries and restaurants. Founded in 1972, the company manages brands including The Cheesecake Factory, North Italia, Flower Child, and Fox Restaurant Concepts.
7. Darden Restaurants, Inc. (NYSE:DRI)
Darden Restaurants, Inc. (NYSE:DRI) is among the 8 High-Growth Restaurant Stocks for 2026. Following the company’s Q3 FY 2026 results on March 19, BofA raised its price target to $272 from $262 and maintained a Buy rating, citing slightly better estimates. Driven by healthy trends, the analyst raised the Q4 same-store sales growth projections to 3.9% from 3.1%. The analyst is also pencilling in lower commodity inflation at 3.5%, down from 4.0%.
Before the results, BofA lifted the price target on Darden Restaurants, Inc. (NYSE:DRI) to $262, up from $261, and maintained a Buy rating on March 16. In the Q3 earnings preview, the analyst had said that the firm believes same-store sales growth will remain stable QoQ at the company’s two flagship brands, Olive Garden and LongHorn.
Back on March 13, Bernstein SocGen Group reaffirmed an Outperform rating on Darden Restaurants, Inc. (NYSE:DRI) with a price target of $230. According to the firm, the company is in a good position for a turnaround into Q3, as the market underappreciates both the durability of demand drivers and the flexibility within its profit and loss statement.
In contrast to its casual dining and fast casual competitors, Darden Restaurants, Inc. (NYSE:DRI) has adopted a more measured pricing strategy. Bernstein anticipates a nearly 3.5% rise in pricing in the second half. This price hike is expected to have minimal impact on LongHorn’s traffic, amid 15% beef inflation at retail stores, the firm concluded.
Darden Restaurants, Inc. (NYSE:DRI), founded in 1938, is a Florida-based company that owns and operates full-service restaurants, including Olive Garden, LongHorn Steakhouse, Chuy’s, Yard House, and Seasons 52.
6. Papa John’s International, Inc. (NASDAQ:PZZA)
Papa John’s International, Inc. (NASDAQ:PZZA) is among the 8 High-Growth Restaurant Stocks for 2026. During the UBS Global Consumer and Retail Conference on March 12, Papa John’s International, Inc. (NASDAQ:PZZA) highlighted its strategic plans for growth, driven by three underlying drivers: innovation, value offerings, and operational enhancements. Although the domestic market is under strain, real prospects arise from international momentum and investments.
On the operational end, Papa John’s International, Inc. (NASDAQ:PZZA) is focusing on menu innovation and technology improvements. The company plans to enhance the overall ordering experience by upgrading its website and app. In order to do this, the company is utilizing Google’s ordering agent for group and voice ordering.
For the future, Papa John’s International, Inc. (NASDAQ:PZZA) is working to open 40 to 50 net new restaurants in North America and 180 to 220 internationally. With the first quarter expected to be challenging, the company projects North American sales to drop by 2% to 4% due to a decline in transactions. By 2028, the company anticipates $25 million in G&A savings and $60 million in supply chain savings.
On the same day, Stifel reaffirmed its Hold rating and price target of $32 on Papa John’s International, Inc. (NASDAQ:PZZA). The firm highlighted a tough road ahead to improve performance in North America, mainly as scaled-value competitors prepare to increase promotions in FY26.
Papa John’s International, Inc. (NASDAQ:PZZA) is a Kentucky-based company owning and managing pizza delivery and carryout restaurants. Founded in 1984, the company operates through Domestic Company-Owned Restaurants, North America Franchising, North America Commissaries, and International segments.
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Click to continue reading and see the 5 High-Growth Restaurant Stocks for 2026.
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