10 High Growth Restaurant Stocks For 2025

1. Texas Roadhouse Inc. (NASDAQ:TXRH)

Texas Roadhouse Inc. runs a casual dining restaurant chain that serves American-inspired food. The company has restaurants in 49 states of the U.S. and also in ten countries around the world. It operates and manages restaurants under Jaggers, Texas Roadhouse, and Bubba’s 33 names.

TXRH is a restaurant that has survived 20 years of Wall Street attention and grown at a pace it was comfortable with. The same cannot be said about a few other restaurants that were unable to deal with their business post-IPO. The company has increased its restaurant count from 162 at IPO to 775 now. The stock continues to enjoy a high valuation and has been growing its sales at just over 15% since 2019.

The stock also recently received an upgrade from Morgan Stanley, acquiring an Overweight rating from the prior Equal Weight. The investment bank is optimistic about a restaurant recovery this year, though the size of the recovery may not be that significant.

Texas Roadhouse Inc. is not on our latest list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 45 hedge fund portfolios held TXRH at the end of the third quarter which was 42 in the previous quarter. While we acknowledge the potential of TXRH as a leading AI investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as TXRH but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.