10 Best Restaurant Stocks To Buy According to Analysts

2. The ONE Group Hospitality, Inc. (NASDAQ:STKS)

Average Share Price Upside Potential as of November 12: 121.75%

The ONE Group Hospitality, Inc. (NASDAQ:STKS) is a restaurant company that operates notable upscale and polished casual restaurant chains including STK Steakhouse and Kona Grill, among others. It also provides hospitality management services for casinos, hotels, and other high-end venues.

On March 26, the company announced the acquisition of Safflower Holdings Corp., the owner of the Benihana teppanyaki brand and RA Sushi, for a deal valued at $365 million. The acquisition is set to add $575 million in annualized system-wide revenue for The ONE Group Hospitality, Inc. (NASDAQ:STKS), and approximately $70 million in annual run-rate EBITDA before synergies.

The acquisitions have resulted in a significant revenue bump for the restaurant company. On November 7, The ONE Group Hospitality, Inc. (NASDAQ:STKS) announced financial results for the third quarter of fiscal year 2024. Total GAAP revenues increased 152.3% year-over-year to a record $194 million. Restaurant operating profits also increased by 90 basis points to 13.2%, driven by robust restaurant-level margins of 17% at Benihana. It ended the quarter with $70 million worth of liquid resources, comprising cash on hand, revolver ability, and short-term credit receivables.

The ONE Group Hospitality, Inc. (NASDAQ:STKS) plans to open six new venues in 2024, which will include five company-owned restaurants, in addition to a managed STK Steakhouse. It intends to open between 5 to 6 restaurants annually moving ahead as well. The company is also encouraged by ongoing trends in the economy and considers the interest rate cuts to benefit its target demographics. While same-store sales are expected to decline 4% to 8% in Q4, it anticipates consolidated margins of around 17% for fiscal year 2025.

The ONE Group Hospitality, Inc. (NASDAQ:STKS) is one of the best restaurant stocks to buy according to analysts, with a consolidated Buy rating.