Top 10 Restaurant Stocks to Buy Under $20

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

Share Price: $19.68

Number of Hedge Fund Holders: 29

Dine Brands Global, Inc. (NYSE:DIN) owns and franchises casual and family dining restaurants, including Applebee’s and IHOP. Its operations are divided into Franchise, Rental, Company Restaurant, and Financing Operations segments.

The company generated $106.4 million in adjusted free cash flow in fiscal year 2024, reflecting a $103.3 million growth over last year. The steady state of its cash flow shows the financial stability and resilience of Dine Brands Global, Inc.’s (NYSE:DIN) platforms through market cycles. This positions the company to make the necessary investments for improved performance.

In 2025, the company is focusing on opportunities to leverage its strong free cash flow, scale, and expertise to improve brand performance. Dine Brands Global, Inc. (NYSE:DIN) is doing so by improving guest experience through menu enhancements and improved operations, along with dynamic marketing initiatives. Analysts are bullish on the stock, and its median price target of $19.68 implies an upside of 34.65% from current levels. The company takes the third spot on our list of the top restaurant stocks to buy now under $20.