5 Cheap Restaurant Stocks to Buy Now

In this piece, we will take a look at five cheap restaurant stocks to buy now. If you want to take a look at what the restaurant industry is about, then head on over to 11 Cheap Restaurant Stocks to Buy Now.

5. Denny’s Corporation (NASDAQ:DENN)

Number of Hedge Fund Investors in Q1 2023: 17

Trailing P/E Ratio: 12.94

Denny’s Corporation (NASDAQ:DENN) operates restaurant chains and cafes in the U.S. The firm is expected to grow its revenue by 3% between 2022 and 2026 annually. The shares are rated Buy on average and the average share price target is $14.17. Its healthy breakfast options and a weak economy present some catalysts for growth in the short term.

As of this year’s first quarter, 17 of the 943 hedge funds part of Insider Monkey’s database had bought and owned Denny’s Corporation (NASDAQ:DENN) ‘s shares. Out of these, the largest shareholder is Chuck Royce’s Royce & Associates through a $13 million investment.

4. Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL)

Number of Hedge Fund Investors in Q1 2023: 18

Trailing P/E Ratio: 22.23

Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL) is a gift shop restaurant company in America. It is aiming toward long term revenue growth through its catering division and marketing spending. The shares are however rated Hold on average and the stock has little upside.

Insider Monkey dug through 943 hedge funds for their March quarter of 2023 shareholdings to find out that 18 had held a stake in the company. Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL)’s largest shareholder in our database is Paul Marshall and Ian Wace’s Marshall Wace LLP through a $47.9 million stake.

3. Dine Brands Global, Inc. (NYSE:DIN)

Number of Hedge Fund Investors in Q1 2023: 19

Trailing P/E Ratio: 11.3

Dine Brands Global, Inc. (NYSE:DIN) operates three different franchise brands as well as its own facilities. The firm has grown its operating income by a strong 22.5% over the past five years. The shares are rated Buy on average and they offer a solid upside of $22.

19 of the 943 hedge funds part of Insider Monkey’s Q1 2023 database had owned Dine Brands Global, Inc. (NYSE:DIN)’s shares. The firm’s biggest hedge fund investor is Glenn Fuhrman and John Phelan’s MSD Capital courtesy of its $50 million investment.

2. Brinker International, Inc. (NYSE:EAT)

Number of Hedge Fund Investors in Q1 2023: 24

Trailing P/E Ratio: 22

Brinker International, Inc. (NYSE:EAT) is a global restaurant company. The firm’s third quarter of fiscal year 2023 results saw it post 10.5% in annual revenue growth, marking the seventh consecutive quarter of growth. The shares however teeter towards a Hold rating but are rated Buy on average.

After digging through 943 hedge fund portfolios for this year’s March quarter, Insider Monkey discovered that 24 had bought stakes in the firm. Brinker International, Inc. (NYSE:EAT)’s biggest shareholder out of these is Brandon Haley’s Holocene Advisors through a stake worth $70.5 million.

1. Darden Restaurants, Inc. (NYSE:DRI)

Number of Hedge Fund Investors in Q1 2023: 30

Trailing P/E Ratio: 20.93

Darden Restaurants, Inc. (NYSE:DRI) is one of the larger companies on our list, with close to 200 thousand full time employees. Its fourth quarter of the fiscal year 2023 led to a 6.4% annual sales growth, and for the full year, revenue increased by 8.9%.

As of March 2023, 30 out of the 943 hedge funds part of Insider Monkey’s database had invested in Darden Restaurants, Inc. (NYSE:DRI). Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital is the largest hedge fund investor since it has invested $178 million in the company.

Disclosure: None. You can also take a look at 25 Most Exclusive Luxury Brands in the World and 15 Most Famous Hedge Fund Managers.

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