Zacks Highlights Dutch Bros, Brinker, BJ's, and Arcos Dorados as Restaurant Stocks to Buy Despite Industry Headwinds

Zacks Investment Research··Read original
2▲2 ▼0Impact / 5
Summary · why it matters

Zacks Equity Research identifies Dutch Bros, Brinker International, BJ's Restaurants, and Arcos Dorados as four restaurant stocks well-positioned to navigate ongoing industry challenges. The Zacks Retail-Restaurants industry faces pressure from elevated menu prices, cautious consumer spending, and rising labor, food, and occupancy costs, yet operators benefit from sustained demand for convenience, expanding digital platforms, and new restaurant openings. The industry carries a Zacks Industry Rank of 181, placing it in the bottom 27% of more than 247 industries, and has declined 8% over the past year while the S&P 500 rose 22.8%. Dutch Bros is expected to see 2026 sales and earnings rise 27.1% and 22.4% year over year, respectively, while Brinker International's fiscal 2026 sales and earnings are projected to increase 7.9% and 20.8%. BJ's Restaurants anticipates 2026 sales growth of 2.7% but an earnings decline of 2.2%, and Arcos Dorados forecasts sales and earnings jumps of 10% and 180.8%.

Impact on assets 4

Consumer Discretionary▲ · 4 stocks
Dutch Bros Inc
BROS
▲ PositiveDemandrelevance

Expected 2026 sales and earnings growth of 27.1% and 22.4% respectively, driven by sustained demand for convenience and new openings.

Brinker International Inc
EAT
▲ PositiveDemandrelevance

Projected fiscal 2026 sales and earnings growth of 7.9% and 20.8% respectively, benefiting from digital platforms and new openings.

BJs Restaurants Inc
BJRI
± Mixedrelevance

Mentioned as a stock to buy despite industry headwinds, but projected earnings decline of 2.2% for 2026.

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