Casual Dining Revival: Investors Rediscover Love for Struggling Chains

Investors have rediscovered their love for casual dining restaurants, but not for all chains. Stocks in Red Robin, Cheesecake Factory, and Cracker Barrel have more than doubled this year, while Brinker International is up 71%. Outback Steakhouse owner Bloomin' Brands has seen its stock rise by 68%, and Texas Roadhouse (24%) and Darden (23%) have also performed well. Noodles & Company's stock has skyrocketed 187% so far in 2026, despite the chain's sales struggles.

However, not all chains are thriving. Wingstop has lost more than half its value this year, down 51%, while Dave & Buster's and Papa Johns have declined by 37% and 36%, respectively. McDonald's stock is down nearly 11%, and Yum Brands' is up only 2%. The median restaurant stock is up just 2% so far in 2026, but the average return has been 22% due to some chains' strong performances.

Many struggling brands are now winning over investors. Red Robin and Noodles & Company have both seen their sales improve after years of decline, while Cracker Barrel's recent logo change controversy has not hurt its stock performance. Starbucks is up 29% this year thanks to sales improvement under CEO Brian Niccol.