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Buying restaurant stocks is a bit like eating out—it's important to know which is the best on the block. Luckily, The Street compiled a list of the top 10 restaurant stocks, and Bisnow trimmed that down to the top 5. Check out whether your favorite eatery made the cut.
1. Starbucks
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Ticker: SBUX
Rating: A
Opening price as of 9/2: $56.31
The number of Starbucks locations worldwide more than doubled in the decade between 2004 and 2014, and it's no surprise to see it at the top of the list. One surprising reason some investors are buying shares of the Coffee King has to do with dividends—the firm has increased its dividend payout by 23% or more over the course of the last six years.
2. Ark Restaurants
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Ticker: ARKR
Rating: A-
Opening price as of 9/2: $22.65
Ark Restaurants operates a coalition of fast food joints, catering operations and wholesale bakeries across the country. Its stock has soared 11.7% over the last three months and 11% over the past six. And at under $23 a share, Ark is priced to move.
3. Cracker Barrel Old Country Store
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Ticker: CBRL
Rating: A-
Opening price as of 9/2: : $151.27
By far the priciest stock on the list, Cracker Barrel just got its stock rating dubbed Market Perform by analysts at Telsey Advisory. The analysts say the $3.69B market cap company has a 2.13% upside potential, which is believable seeing as the Southern country-themed restaurant's stock has climbed 21.68% since late January.
4. Cheesecake Factory
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Ticker: CAKE
Rating: A-
Opening price as of 9/2: $51.06
Your favorite cheesecake restaurant has outperformed the S&P 500 by a 1.33% for the past four weeks and the bullish price target for the stock is $60 in the short term. The company operates around 189 restaurants and a few bakeries, and sells its products in 24 countries.
5. Texas Roadhouse
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Ticker: TXRH
Rating: A-
Opening price as of 9/2: : $44.27
Texas Roadhouse's profits surged in Q2 thanks to lower food costs and higher sales. The company operates 403 locations while franchisees run another 84, and the firm plans to add 30 locations this year.
