Top 5 Restaurant Stocks Under $10

2. Noodles & Company (NASDAQ: NDLS)

Price as of April 20, 2021: $9.60 per share

Noodles & Company (NASDAQ: NDLS) is a Denver-based fast-casual restaurant that offers international and American noodle dishes and pasta, as well as soups and salads. It was founded in 1995 and is placed second on our list of top 10 restaurant stocks under $10. The company operates more than 350 company-owned and more than 70 franchised restaurants in 29 US states. Earlier this month, investment bank Jefferies rated Noodles stock a Buy on the back of positive trends for dine-in restaurants as the economy reopened. 

In March, the stock of the firm had jumped to a 52-week high after investment bank Piper Sandler upgraded the rating of the firm to Overweight from Neutral. Piper Sandler affirmed that there was an opportunity for the stock to grow 30% based on its expansion plans.

At the end of the fourth quarter of 2020, 22 hedge funds in the database of Insider Monkey held stakes worth $120 million in the firm, up from 19 in the preceding quarter worth $67 million.