10 Best Restaurant Stocks to Buy Today

4. Texas Roadhouse, Inc. (NASDAQ:TXRH)

Number of Hedge Fund Holders: 44

Founded in 1993 in Louisville, Kentucky, Texas Roadhouse, Inc. (NASDAQ:TXRH) is a casual dining restaurant operator, known for its steakhouse – Texas Roadhouse.

On the back of its revenue projections growth of 9% for the next three years, stock price upside potential of roughly 5%, and impressive Q1 2024 performance, Texas Roadhouse, Inc. (NASDAQ:TXRH) finds a sweet spot in our list of the 10 Best Restaurant Stocks to Buy Today.

An uptick of 13% in its revenue for Q1 2024, as compared to Q1 2023 drove the profitability of the company in the quarter, helping it bag an EPS of $1.7, which was an increase from its Q1 2023 EPS of $1.3! This, in turn, improved the profitability of the company in the quarter, as its margin rose from 7.4% to 8.6%.

The stock, as a result of the achieved growth in the year so far, has caught the attention of six more hedge funds who have taken interest in the stock, as of 2024 Q1. Hedge fund holdings’ value has gone up, hitting $1.1 billion, also justifying the stock’s place in our list. TXRH’s forward PE ratio is 29, however, we believe this is justified as the company doubled its revenues since 2020.