Top 10 Restaurant Stocks to Buy Under $20

8. Denny’s Corporation (NASDAQ:DENN)

Share Price: $2.99

Number of Hedge Fund Holders: 16

Denny’s Corporation (NASDAQ:DENN) operates franchised and licensed restaurants. Its operations are divided into Denny’s and Other segments. The Denny’s segment manages all company-franchised and licensed Denny’s restaurants, while the Other segment covers all company and franchise restaurants.

Fiscal Q4 2024 was a strong quarter for the company’s brands, Denny’s and Keke’s. Denny’s maintained positive quarter-over-quarter same-restaurant sales of 1.1%, while Keke’s generated the same of positive 3%. Denny’s also reported domestic systemwide, same-restaurant sales of positive 1.1% for fiscal Q4 2024, outperforming the BI Family Dining Index for the fourth consecutive quarter. Its domestic franchise restaurants delivered same-restaurant sales of 1.2%.

Denny’s Corporation (NASDAQ:DENN) also has strong off-premises sales, reaching 21% in fiscal Q4 2024. This was supported by a 70 basis point increase in same-restaurant sales from the launch of its third virtual brand, Banda Burrito. Analysts are bullish on the stock, and its median price target of $2.99 implies an upside of 167.56% from current levels. The company ranks eighth on our list of the top 10 restaurant stocks to buy under $20.