Hungry for Profits? Then Consider Adding These 3 Steakhouse Stocks to Your Portfolio

NASDAQ: BLMN | Bloomin' Brands, Inc. News, Ratings, and Charts

BLMN – Restaurant stocks soared higher earlier this year as the vaccinations and falling coronavirus case counts increased optimism that the economy would be able to fully recover. Ruth’s Hospitality Group (RUTH), Texas Roadhouse (TXRH), and Bloomin’ Brands (BLMN) are three steakhouse stocks worthy of your investing dollars.

Restaurant stocks soared higher earlier this year as the vaccinations and falling coronavirus case counts increased optimism that the economy would be able to fully recover.


However, over the past couple of months, this sector has underperformed as it became clear that the pandemic wasn’t going to have such a neat and tidy ending. Yet, this may be the time to buy the dip as case counts are starting to decline, setting us up for a nice year-end rally.
Ruth’s Hospitality Group (RUTH), Texas Roadhouse (TXRH), and Bloomin’ Brands (BLMN) are three steakhouse stocks worthy of your investing dollars. These stocks are well-positioned to absorb higher costs and pass them on to customers.

RUTH is the country’s top fine-dining steakhouse. Search Google for “Ruth’s near me” and you will likely find at least one of these fine dining locations within a reasonable distance from your home or workplace. More than 150 Ruth’s Chris Steak House restaurants are open in the United States.

RUTH has a beta of 2.41, partially because of the tumultuous year for restaurant stocks that was 2020. The stock is currently trading at $20.42. RUTH’s 52-week low is $9.95. The stock has a 52-week high of $28.73. RUTH has a forward P/E ratio of 18.02, a respectable figure, especially when juxtaposed with the market’s seemingly countless overvalued stocks.

RUTH qualifies as a Buy as it has a B POWR Rating. RUTH has B grades in the Quality, Value, Growth, and Sentiment components of the POWR Ratings. Investors can learn more about RUTH’s Momentum and Stability component grades by clicking here.

Out of the 44 stocks in the Restaurants space, RUTH is ranked third overall. You can find out more about the stocks in this segment by clicking here.

The top analysts are pounding the table in favor of RUTH. If these analysts’ predictions come true, RUTH will reach its average target price of $25.90. Such a spike equates to a 29.44% increase in value.


TXRH has nearly 600 Texas Roadhouse and Bubba’s restaurants spaced out across the United States and nine other countries. TXRH has successfully pivoted to a business model that includes online ordering, to-go orders, and delivery. Exactly 17% of TXRH’s second-quarter earnings were attributable to to-go sales.

TXRH has a B POWR Rating grade, meaning it is a Buy. The stock has B grades in the Quality, Value, and Growth components. Click here to learn more about TXRH’s performance in the rest of the POWR Rating components such as Momentum, Stability, and Sentiment.

Out of the 44 Restaurant stocks, TXRH is ranked 24th. Investors can find out more about the Restaurant segment by clicking here.

If the analysts are correct, TXRH is headed higher. The average analyst price target for the stock is $106.29, meaning it has more than 17% upside potential. The average price target for TXRH has increased by $53.17 in the prior 15 months.

TXRH’s low beta of 1.09 should pique your interest. However, the stock’s forward P/E ratio of 24.54 is a bit high for its industry.


BLMN’s casual dining restaurants consist of Outback Steakhouse, Fleming’s Prime Steakhouse, Bonefish Grill, Carrabba’s Italian Grill, and more. Based in Tampa, Florida, BLMN owns and franchises locations throughout the United States.

The professionals who assess stocks for a living are quite bullish on BLMN, establishing an average target price of $34.79. An increase to this level equates to a 41.25% jump.

BLMN has a comparably high beta of 2.17 yet its low forward P/E ratio of 8.94 will certainly attract investors.

BLMN has a B POWR Rating grade. The stock has A grades in the Value and Growth components of the POWR Ratings. BLMN also shines bright in the Quality component with a B grade. Investors are encouraged to learn more about BLMN’s POWR Rating components by clicking here.

BLMN ranks in the top 10 of its Restaurants category, slotting in at 44th overall. You can find out more about the stocks in this space by clicking here.

BLMN shares were trading at $24.99 per share on Friday morning, down $0.37 (-1.46%). Year-to-date, BLMN has gained 28.68%, versus a 19.08% rise in the benchmark S&P 500 index during the same period.

About the Author: Patrick Ryan

Patrick Ryan has more than a dozen years of investing experience with a focus on information technology, consumer and entertainment sectors. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management. More...

More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
BLMNGet RatingGet RatingGet Rating
RUTHGet RatingGet RatingGet Rating
TXRHGet RatingGet RatingGet Rating

Most Popular Stories on

Inflation Not Fading Fast Enough for Stock Investors

Investors may have celebrated the end of high inflation too soon. The CPI report shows inflation bouncing higher and thus pushing back the start date for Fed rate cuts. This has the S&P 500 (SPY) coming off recent highs. This begs questions like how much more downside could we see? And when will the bull market get back on track? 44 year investment veteran Steve Reitmeister shares his answers to these questions in this timely commentary including a preview of his top picks to stay ahead of the pack. Read on below for more...

3 Auto Stocks to Consider Over TSLA in April

Tesla (TSLA) reported a decline in deliveries in the first quarter, and Wall Street expects the company to deliver fewer vehicles than last year. Furthermore, rising competition, slowing EV sales, and stretched valuation make TSLA unattractive from an investment standpoint. Considering these factors, investors could consider buying fundamentally strong auto stocks Blue Bird (BLBD), Rolls-Royce Holdings (RYCEY), and Stellantis (STLA) over Tesla (TSLA). Read more...

3 Top-Rated Tech Stock Buys for Value in April

The technology sector is undergoing a notable surge, propelled by increasing digitalization endeavors among businesses and governmental support for technological progress. So, fundamentally sound tech stocks Box Inc. (BOX), Teradata (TDC), and Materialise (MTLS), which seem pretty undervalued, might be ideal buys this month. Continue reading...

Top Software Stocks at the Forefront of Market Gains

The software industry's prospects appear bright due to increasing investments in digital transformation, high demand for advanced software services from various sectors, and the integration of emerging technologies such as generative AI. Therefore, investors could consider buying quality software stocks Autodesk (ADSK), DocuSign (DOCU), and Pegasystems (PEGA) for solid gains. Read more...

Updated 2024 Stock Market Outlook

The bull market continues to rage on with the S&P 500 (SPY) making new highs. That is the past...the question is what does the future hold? That is why 44 year investment veteran Steve Reitmeister provides this updated 2024 Stock Market Outlook to help you carve a path to outperformance the rest of the year. Read on below for the full story...

Read More Stories

More Bloomin' Brands, Inc. (BLMN) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All BLMN News