Top Restaurant Stocks for Q3 2022

The restaurant industry ranges from local mom-and-pop eateries to national and international chains. The industry is notoriously difficult for business owners, with about 60% of new restaurants failing within their first year. One reason for this is that restaurant spending tends to be heavily discretionary, fluctuating dramatically with the broader economy. While business has begun to rebound, financial pressure increased sharply on restaurants and restaurant chains during the COVID-19 pandemic as many of them faced rising costs, mounting debt, and falling sales. Some of the best-known publicly traded restaurants include McDonald's Corp. and Chipotle Mexican Grill Inc.

The restaurant industry, represented by the Dow Jones U.S. Restaurants & Bars Index, has underperformed the broader market with a total return of -8.6% over the past 12 months, as of June 8, 2022. By comparison, the Russell 1000's total return over the same period is -3.5%. All statistics in the tables below are also as of June 8, 2022.

Here are the top 3 restaurant stocks with best value, fastest growth, and most momentum.

These are the restaurant stocks with the lowest 12-month trailing price-to-earnings (P/E) ratio. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows you’re paying less for each dollar of profit generated.