In this article we will take a look at the top 5 restaurant stocks under $10. For a detailed analysis of the restaurant industry, go directly to the Top 10 Restaurant Stocks Under $10.
5. Arcos Dorados Holdings Inc. (NYSE: ARCO)
Price as of April 20, 2021: $5.40 per share
Arcos Dorados Holdings Inc. (NYSE: ARCO) is a Uruguay-based firm that owns the master franchise of the fast food restaurant chain McDonald’s in 20 countries in Latin America and the Caribbean. The franchise owned by the firm is the largest in the world in terms of system-wide sales and the number of restaurants. It has operations in Argentina, Aruba, Brazil, Chile, Colombia, Costa Rica, Curacao, Ecuador, French Guiana, Guadeloupe, Martinique, Mexico, Panama, Peru, Puerto Rico, Trinidad and Tobago, and Uruguay.
The company runs more than 2,200 restaurants across these countries and was founded in 2007. It is placed fifth on our list of top 10 restaurant stocks under $10.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Moerus Capital Management held the most shares in the company – 6.06 million – worth more than $30.4 million. Millennium Management was second on the list with 1.6 million shares worth $8.1million.
4. Potbelly Corporation (NASDAQ: PBPB)
Price as of April 20, 2021: $5.94 per share
Potbelly Corporation (NASDAQ: PBPB) is a Chicago-based company that runs Potbelly sandwich shops in the United States. The items on the menu of the company restaurants include sandwiches, salads, soups, chili, sides, desserts, breakfast sandwiches, and steel cut oatmeal. The firm runs more than 400 shops and 46 franchise stores across the US. It was founded in 1977 and is placed fourth on the list of top 10 restaurant stocks under $10.
The firm has a market cap of more than $172 million and posted an annual revenue of more than $291 million in December 2020, down from $409 million in the previous year. Potbelly is expected to make a strong comeback as the vaccine rollout in the country allows for the reopening of restaurants.
At the end of the fourth quarter of 2020, 6 hedge funds in the database of Insider Monkey held stakes worth $25.7 million in the firm, down from 7 in the preceding quarter worth $20.3 million.
3. Luby’s, Inc. (NYSE: LUB)
Price as of April 20, 2021: $3.50 per share
Luby’s, Inc. (NYSE: LUB) is a Texas-based firm that offers restaurant services in the United States. It has six famous brands: Luby’s Cafeterias, Fuddruckers, World’s Greatest Hamburgers, Koo Koo Roo, Cheeseburger in Paradise, and Culinary Contract Services. The company runs more than 84 restaurants across 26 locations in the country. These include more than 20 Fuddruckers restaurants. The firm was founded in 1947 as Luby’s Cafeterias but later changed its name. It is placed third on our list of top 10 restaurant stocks under $10.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Bandera Partners held the most shares in the company – 2.8 million – worth more than $8.1 million. Renaissance Technologies was second on the list with 0.4 million shares worth $1.1 million. In January, the company appointed John Garilli as Interim President and Chief Executive Officer after Christopher Pappas stepped down.
2. Noodles & Company (NASDAQ: NDLS)
Price as of April 20, 2021: $9.60 per share
Noodles & Company (NASDAQ: NDLS) is a Denver-based fast-casual restaurant that offers international and American noodle dishes and pasta, as well as soups and salads. It was founded in 1995 and is placed second on our list of top 10 restaurant stocks under $10. The company operates more than 350 company-owned and more than 70 franchised restaurants in 29 US states. Earlier this month, investment bank Jefferies rated Noodles stock a Buy on the back of positive trends for dine-in restaurants as the economy reopened.
In March, the stock of the firm had jumped to a 52-week high after investment bank Piper Sandler upgraded the rating of the firm to Overweight from Neutral. Piper Sandler affirmed that there was an opportunity for the stock to grow 30% based on its expansion plans.
At the end of the fourth quarter of 2020, 22 hedge funds in the database of Insider Monkey held stakes worth $120 million in the firm, up from 19 in the preceding quarter worth $67 million.
1. Good Times Restaurants Inc. (NASDAQ: GTIM)
Price as of April 20, 2021: $4.51 per share
Good Times Restaurants Inc. (NASDAQ: GTIM) is a Colorado-based fast food chain that focuses on offering premium burgers and frozen custard. It also owns Bad Daddy’s Burger Bar, a full-service casual dining restaurant. It runs 37 Bad Daddy’s Burger Bar restaurants; and 25 Good Times Burgers & Frozen Custard restaurants. The company was founded in 1987 and is placed first on our list of top 10 restaurant stocks under $10.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Renaissance Technologies held the most shares in the company – 534,778 – worth more than $1.5 million. Manatuck Hill Partners was second on the list with 25,300 shares worth $72,000.
Earlier this month, the company reported 22.9% year-on-year growth for quarter two in same store sales for its Good Times Burgers & Frozen Custard brand. Bad Daddy’s Burger Bar sales increased 9.1% during the time period.
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