Top 5 Restaurant Stocks Under $10

In this article, we will take a look at the top 5 restaurant stocks under $10. If you want to see some more of the stocks, go to the Top 10 Restaurant Stocks Under $10.

5. Carrols Restaurant Group, Inc. (NASDAQ:TAST)

Number of Hedge Fund Holders: 11

Stock Price: $1.68

Carrols Restaurant Group, Inc. (NASDAQ:TAST) is a Syracuse, New York-based company.

The company is the biggest franchisee of Burger King, with more than 1,000 locations across the world. Carrols Restaurant Group, Inc. (NASDAQ:TAST) provides exposure to a leading company like Burger King at a very low price. Furthermore, the company also has 55 Popeyes restaurants in its portfolio. In a research note issued to investors on September 22, Joshua Long at Stephens initiated coverage on Carrols Restaurant Group, Inc. (NASDAQ:TAST) stock with an Overweight rating and a target price of $4. The analyst has a bullish stance on the stock due to the improvement of Burger King’s brand image. The Miami, Florida-based fast food restaurant chain initiated the “Reclaim the Flame” strategic plan. Under the plan, Burger King intends to invest $400 million in the next two years in advertising and remodeling its restaurants, which is expected to expand Carrols Restaurant Group, Inc.’s (NASDAQ:TAST) margins.

Carrols Restaurant Group, Inc. (NASDAQ:TAST) stock is one of the best restaurant stocks that offers an attractive small-cap story and strong growth prospects. On the basis of EV to EBITDA and Price to Sales ratio, the company is significantly undervalued in comparison to its competitors.