Top 10 Restaurant Stocks to Buy Under $20

4. Bloomin Brands, Inc. (NASDAQ:BLMN)

Share Price: $7.05

Number of Hedge Fund Holders: 26

Bloomin’ Brands, Inc. (NASDAQ:BLMN) is a Florida-based restaurant holding company with four brands: Outback Steakhouse, Fleming’s Prime Steakhouse & Wine Bar, Carrabba’s Italian Grill, and Bonefish Grill. The company owns and operates more than 1,450 restaurants in 45 US states, Guam, and 13 countries, some of which are franchises. Its operations are divided into two segments: International and US.

On December 30, 2024, the company completed the sale of 67% of its Brazil operations to a fund managed by an affiliate of Vinci Partners, retaining a 33% interest. Analysts believe this move will streamline Bloomin’ Brands, Inc.’s (NASDAQ:BLMN) business and boost operational efficiency by allowing it to concentrate on its domestic market.

The company is also taking several actions to address its near-term business results, such as focusing on building sustainable traffic and profitable comparable restaurant sales growth by improving quality, value, and guest experience. Analysts are bullish on Bloomin’ Brands, Inc.’s (NASDAQ:BLMN) potential, and its median price target of $7.05 implies an upside of 63.12% from current levels. The company ranks fourth on our list of the best restaurant stocks to invest in under $20.