10 Best Restaurant Stocks To Buy According to Analysts

5. Bloomin’ Brands, Inc. (NASDAQ:BLMN)

Average Share Price Upside Potential as of November 12: 39.03%

Bloomin’ Brands, Inc. (NASDAQ:BLMN) is an American restaurant holding company that owns four brands: Outback Steakhouse, Carrabba’s Italian Grill, BonefishGrill, and Fleming’s Prime Steakhouse & Wine Bar.

The stock has slumped 53% year-to-date due to industry-wide pressures and changing consumer preferences. On November 8, Bloomin’ Brands, Inc. (NASDAQ:BLMN) announced financial results for the third quarter of 2024. Revenue for the quarter was posted at $1 billion, down 4% from last year, driven by a decline in comparable restaurant sales and the effect of foreign currency translation of the Brazilian Real relative to the USD. EPS stood at $0.21, narrowly beating expectations by one cent.

It ended the quarter with $1 billion in total debt, net of cash. The company upsized its revolver to $1.2 billion, which will provide improved liquidity and broader financial flexibility. Bloomin’ Brands, Inc. (NASDAQ:BLMN) has repurchased 10.1 million shares so far this year for $266 million. It has $97 million remaining under its share authorization program. On October 22, the company announced a quarterly dividend of $0.24 per share, which is payable in December.

Bloomin’ Brands, Inc. (NASDAQ:BLMN) entered into a Purchase Agreement with Vinci Partners on November 6 for the strategic re-franchising of its Brazilian operations, under which it would sell 67% of its ownership for approximately $243 million under the current exchange rate. This agreement is likely to simplify the business and help improve operations by focusing on domestic operations.

Despite the current headwinds, it has a price upside potential of over 39%, making it one of the best restaurant stocks to buy according to analysts.