In this article, we will take a look at the 10 best restaurant stocks under $10. If you want to skip our industry analysis, you can go straight to the Top 5 Restaurant Stocks Under $10.
The restaurant industry is showing signs of recovery as the ease in inflation levels and the drop in gas prices is helping to regain consumer purchasing power. In September, same-store sales for restaurants grew by 5.2% YoY. The significance of the US restaurant industry can be gauged by the fact that it accounts for 4% of the US GDP as opposed to a contribution of 3% and 2%, respectively, from the industries automotive and fashion. However, the restaurant industry is also struggling to match the increase in demand for its services. The US food service industry will employ 14.9 million workers as of 2022 and is still facing labor shortages as the COVID-19 pandemic has caused many workers to leave the industry and seek opportunities in ‘sectors that were less affected by the pandemic. The lack of workers has also led some major companies to reduce their working hours by 7.5% or 6.4 hours per week compared to pre-pandemic data.
To keep up with consumer preferences, restaurants are quickly adapting to changing industry trends. Top restaurant stocks like McDonald’s Corporation (NYSE:MCD) , Yum! Brands Inc. (NYSE:YUM), and Domino’s Pizza, Inc. (NYSE:DPZ) have actively capitalized on technology advancements in the industry. Overall, 42% of all orders are now accepted through the online channel. The online medium picked up pace during the COVID-19 pandemic, and despite the ease of the pandemic, customer preferences have not changed. In addition, 79% of customers think that technological advancement has improved their restaurant experience. The integration of social media with online ordering, along with inventions such as self-ordering kiosks, have paved a new way for customers to enjoy food from their favorite restaurants at their convenience. Online food orders have increased by 135% since June 2020.
The Best Restaurant Stocks to Buy Under $10
Photo by shawnanggg on Unsplash Our Methodology
In order to come up with our list of the best restaurant stocks to buy under $10, we analyzed the growth drivers for each of these stocks to gauge the upside potential they could offer investors in the length We also discussed analyst ratings and business fundamentals. These top restaurant stocks are trading below $10 as of November 8 and were ranked by hedge fund ownership level as of Q2 2022.
10. The ONE Group Hospitality, Inc. (NASDAQ:STKS)
Number of Hedge Fund Holders: N/A
The ONE Group Hospitality, Inc. (NASDAQ:STKS) is a Denver, Colorado-based developer and operator of upscale, casual, and vibrant restaurants and lounges that include STK Steakhouse and Kona Grill.
Joshua Long at Stephens started coverage on The ONE Group Hospitality, Inc. stock. (NASDAQ:STKS) with a target price of $15 and an Overweight rating on September 22. The analyst thinks the stock offers an attractive growth story for investors and has a strong presence in the fine-dining restaurant segment. The ONE Group Hospitality, Inc. (NASDAQ: STKS) will be able to strengthen its position as a leader in the industry through its high-end social and experiential dining offerings. The company is operating a business that is light on assets and that delivers high margins globally.
In Q3 2022, analysts anticipate that The ONE Group Hospitality, Inc. (NASDAQ: STKS) reports revenue of $77.13 million, which reflects an increase of 7.8% from the same period last year. Meanwhile, adjusted EPS is expected to be posted at 13 cents. In terms of comparable sales, analysts think that The ONE Group Hospitality, Inc. (NASDAQ: STKS ) is outperforming many of its competitors, making it one of the best restaurant stocks to hold.
9. FAT Brands Inc. (NASDAQ:FAT)
FAT Brands Inc. (NASDAQ:FAT) is a Beverly Hills, California-based operator of multi-brand restaurants including Buffalo Express, Fatburger, Johnny Rockets, and Round Table Pizza. The company, with a rich history of more than seven decades, has more than 2,300 units globally and is the 25th largest restaurant chain in the United States.
With a portfolio of renowned restaurant brands, FAT Brands Inc. (NASDAQ:FAT) is looking to expand its presence in the US and global markets. The entity opened its restaurants in 100 new locations this year and intends to close the year with the opening of 125 new restaurants. The corporation is capitalizing on growth opportunities in all markets. FAT Brands Inc. (NASDAQ:FAT) has a strong pipeline of 1,000 new locations as it signed 180 new franchise agreements. These agreements are expected to increase the EBITDA of FAT Brands Inc. (NASDAQ:FAT) by 60% in the coming years, deserving the company’s inclusion in the list of best restaurant stocks.
Experts believe that the stock of FAT Brands Inc. (NASDAQ:FAT) is undervalued compared to other restaurant franchisors. The company’s price to sales ratio of 0.33x and enterprise value to EBITDA ratio of 29.34x is much lower than companies like Domino’s Pizza.
8. Drive Shack Inc. (NYSE:DS)
Number of Hedge Fund Holders: 11
Drive Shack Inc. (NYSE:DS) is a Dallas, Texas-based company known for combining the golf driving range experience with weekend brunches, birthday parties, and corporate events.
The company is transforming itself into a leisure golf company while maintaining its roots in the traditional golf category, generating strong and stable cash flows. However, the company is expanding its presence in the puttery or leisure golf segment. The construction of a puttery takes only six to nine months after the land lease agreement and is expected to generate an EBITDA of $2 million to $3 million per year. Drive Shack Inc. (NYSE:DS) is focusing on developing 50 puttery locations by 2024. Puttery generates the majority of its revenue from food and beverage but also provides diversification as gaming stands generate around 15% of revenue.
In Q2 2022, Drive Shack Inc. (NYSE:DS) saw food and beverage sales increase by $7 million. Traditional golf contributed $4.9 million to the increase in revenue, while recreational golf made a contribution of $2 million. It should be noted that Drive Shack Inc. (NYSE: DS) has a capital intensive model, but the company can sustain this due to high EBITDA margins and the rise of leisure golf among the younger generation. Drive Shack Inc. (NYSE:DS) is trading at an EV/EBITDA ratio of 7.3x, compared to the industry average of 8.5x. Analysts see the company as a high risk/reward option for investors looking to gain exposure to the restaurant industry. The company’s growth prospects make Potbelly Corporation (NASDAQ:PBPB) one of the best restaurant stocks to invest in.
7. Good Times Restaurants Inc. (NASDAQ:GTIM)
Good Times Restaurants Inc. (NASDAQ:GTIM) is a fast food restaurant chain based in Lakewood, Colorado known for its premium burgers and frozen custard through Good Times Burger and Bad Daddy’s Burger Bar. The company currently owns 36 Good Times Burger locations and 31 Bad Daddy’s Burger Bars.
Good Times Restaurants Inc. (NASDAQ: GTIM) believes in maintaining a competitive pricing model and aims to increase prices more slowly than its peers. This is a new strategy that the company is following, as it was previously the restaurant with the highest price among its competitors. Experts believe that the stock of Good Times Restaurants Inc. (NASDAQ:GTIM) is cheap in terms of valuation against its competitors, and the share price could go back to higher levels once inflationary pressure subsides. Good Times Restaurants Inc. (NASDAQ: GTIM ) reported that its same-store sales for Q4 FY22 increased by 5.9% for Good Times and 3.7% for the Bad Daddy brand. The company has done well despite a tough macroeconomic environment, making it one of the best restaurant stocks to invest in.
Renaissance Technologies was the lead hedge fund investor in Good Times Restaurants Inc. (NASDAQ:GTIM) during Q2 2022.
6. Potbelly Corporation (NASDAQ:PBPB)
Potbelly Corporation (NASDAQ:PBPB) is a Lincoln Avenue, Illinois-based operator of a fast-casual restaurant chain known for its submarine sandwiches and milkshakes. The company, founded in 1977, intends to open 19 new locations through a franchise-based model in the next two years.
Potbelly Corporation (NASDAQ:PBPB) has benefited from the return of foot traffic to central business districts and airport stores as its offerings are suited to the on-the-go crowd. Potbelly Corporation (NASDAQ:PBPB) reported same-store sales (SSS) growth of 24.4% in Q1 and 17.2% in Q2 2022. The company continued the positive trend in Q3 2022 by posting the sixth consecutive quarter of same-store sales growth. . Potbelly Corporation (NASDAQ:PBPB) management wants to expand its presence to 2,000 locations, with 85% of franchised facilities over the next ten years.
Additionally, the involvement of 180 Degree Capital Corp as an activist hedge fund has resulted in a change in the company’s senior management that is helping Potbelly Corporation (NASDAQ:PBPB) achieve higher operating efficiency due to improved execution of strategic plans. The company’s strong fundamentals make it one of the best restaurant stocks to buy right now.
First Eagle Investment Management boosted its stake in Potbelly Corporation (NASDAQ:PBPB) by 48% during the second quarter.
In addition to Potbelly Corporation (NASDAQ:PBPB), some of the popular companies in the restaurant industry include McDonald’s Corporation (NYSE:MCD), Yum! Brands Inc. (NYSE:YUM), and Domino’s Pizza, Inc. (NYSE:DPZ).
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He revealed. Nothing. Top 10 Restaurant Stocks Under $10 was originally published on Insider Monkey.
How can I become a millionaire in 5 years?
9 Steps to Becoming a Millionaire in 5 Years (or Less)
- Create a Plan.
- Employer Contributions.
- Ask for an Increase.
- Income Streams.
- Eliminate Debt.
- Improve Your Skills.
How fast can I become a millionaire? It would take about 14 years, with $200,000 a year in gross income to become a millionaire! Not bad until the age of 45, but you are living like 25 years in the process. Now let’s get more realistic here and assume that you save 20% of your after tax income, $28,000 in this case.
How much do I need to save to be a millionaire in 5 years? Although hitting a home run with an investment is what dreams are made of, the most realistic path is to set aside large chunks of money every year. The average historical return for the S&P 500 index is 8%. With that return, you would have to invest $157,830 every year for five years in order to reach $1 million.
Can I make money if I invest 5 dollars?
In reality, the biggest factor in building wealth is how early you start, not how much you currently have. That’s why many new investors are using Acorns, Stash or Robinhood to grow their savings. These micro-investing apps allow anyone to get started, even with just $5.
Is 5 a good return on investment? What is a Good ROI? According to conventional wisdom, an annual ROI of about 7% or greater is considered a good ROI for investing in stocks. This is also about the average annual return of the S&P 500, which accounts for inflation.
How much is $5 a day for a year? If you saved $5 a day for a year, you would have $1,825 dollars. That amount of money can get you the following items.
How much can you make from investing $5?
Investing just $5 a day in an account with an annual return of 10% can give you about $30,000 in 10 years, $330,000 in 30 years and $2.3 million in 50 years. An account with a more modest 6.5% annual return could bring in about $26,000 in 10 years, $168,000 in 30 years and $667,000 in 50 years.
Can you invest with just $5? That’s why many new investors are using Acorns, Stash or Robinhood to grow their savings. These micro-investing apps allow anyone to get started, even with just $5.
How much can the $1 investment make? While $1 a day isn’t a lot of money, you’d be surprised what $1 a day becomes in an investment account over 30 years. With 365 days a year, investing $1 a day for 30 years results in a total principal investment of $10,950.
Can I invest with $5?
Let’s say you want to invest in a company, but its stock price may be higher than what you want to pay. Instead of buying a full share of stock, you can buy a fractional share, which is a “portion” of stock that represents a partial share, for as little as $5.
What if you invested 5 dollars a day? More than Invest in You: Investing just $5 a day in an account with an annual return of 10% can acquire approximately $30,000 in 10 years, $330,000 in 30 years and $2.3 million in 50 years. An account with a more modest 6.5% annual return could bring in about $26,000 in 10 years, $168,000 in 30 years and $667,000 in 50 years.
What’s the lowest amount you can invest?
You don’t need a lot of money to start investing. In fact, you can start investing in the stock market with as little as $10, thanks to free brokerage and the magic of fractional shares.
Can I invest at least $100? Investing can change your life for the better. But many people mistakenly think that unless they have thousands of dollars, there is no good place to put their money. The good news is that is simply not the case. You can start investing with $100 or even less.
What stock has made the most money?
Berkshire Hathaway holds the title for having the highest stock price—$445,000.
What is the biggest gain a stock has ever made in one day? The global record for daily gains in market capitalization was set by PetroChina Co., which added $597 billion in one day in November 2007.
Which stock goes up the most?
Can you make money with $1 stocks?
Can you make money on penny stocks? Just like any type of stock, it is possible to make money with penny stocks. However, it is important to have a lot of risk with penny stocks. There are things you need to know in order to make informed decisions.
Can you make money off 1 dollar in stocks? Investing in the stock market does not mean that you need to have millions, thousands, or even hundreds of dollars to start. Even if you only have one extra dollar, you can start building your portfolio. Here’s how: Fractional shares mean investors aren’t limited by their ability to afford whole shares.
Are cheap stocks worth it? Penny stocks are risky and there is not much information available on most stocks that trade over the counter. With so many alternatives to penny stocks that allow investors to start investing with $5 or less and still enjoy solid historical returns, there is really no reason to view penny stocks as a wise investment.
What happens if you buy a stock for $1?
For just $1, you can buy what are known as fractional shares, or smaller pieces of stock without commission. Choose from a wide range of stocks and funds.
Is it good to have 1 stock? The Bottom Line. Assuming you choose a reliable company, it is worth investing in one share of stock. Your money is more likely to grow in the stock market than in a savings account, and you can enjoy stock splits, dividends, and other developments that increase your wealth without effort.
Can you invest in stock with $1?
Fractional shares are portions of whole shares. Some investors seek fractional shares as an alternative to buying whole shares. On Robinhood, investors can buy fractional shares of stocks and exchange-traded funds (ETFs) for as little as $1.
Can you put 1 dollar in stocks? Fractional shares allow you to invest in stocks based on a dollar amount, so you can end up with a fraction of a share, a whole share or more than one share.
Is $1 enough to invest? But you don’t need a ton of money to buy in the stock market. In some cases, you can start with as little as $1. Stocks and exchange-traded funds can only be purchased in whole units at many brokers. Depending on the company or fund, this can mean thousands of dollars for a single share.
Can I invest in Bitcoin with $1?
Yes, you can buy crypto for $1. In fact, all the cryptocurrencies we discussed above are all selling below $1. However, most crypto exchanges have higher minimum trading limits e.g. $10 in eToro.
How much should I invest in Bitcoin as a beginner? If you’re nervous about making your first purchase, consider starting small with around five dollars. This limits your risk and gives you time to decide if it is right for your investment goals. If you like the experience, you can always invest more later.
Can I invest a small amount in Bitcoin? If you are new to bitcoin, it may be a good idea to buy only a small amount initially. Your potential profits will be lower in this case, but it gives you the opportunity to learn about bitcoin and use it without worrying about making mistakes and losing a bunch of money.
What happens to stocks under $1?
For example, on the New York Stock Exchange (NYSE), if the price of a security closes below $1.00 for 30 consecutive trading days, that exchange begins the delisting process.
What are stocks under $1? Penny stocks are public companies that have a share price of $1.00 or less. These companies often have market capitalizations of under $100 million.
How low can you be under $1 before you are delisted? Nasdaq rules provide a cure period of 180 calendar days from the date of a notice of deficiency based on the minimum bid price, during which the minimum bid price of a company’s stock must be $1 or more for ten consecutive business days to avoid delisting.