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Looking to get exposure to the fast food and casual dining industry? To construct this list we looked for stocks with the following characteristics:

- Significant exposure to the restaurant industry
- Market cap above $300M
- And significant upside potential relative to analyst target prices (used as a proxy for fair value)

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.



We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.



So tell us, which of these companies do you think will give the best bang for your buck?

1. Biglari Holdings Inc. (BH): Restaurants Industry. Market cap of $569.78M. This stock has a potential upside of 29.18%, when comparing its current price of $387.05 vs. its target price of $500. The stock has gained 35.21% over the last year.

2. Cracker Barrel Old Country Store, Inc. (CBRL): Restaurants Industry. Market cap of $1.10B. This stock has a potential upside of 25.46%, when comparing its current price of $46.93 vs. its target price of $58.88. The stock is a short squeeze candidate, with a short float at 12.87% (equivalent to 8.36 days of average volume). It's been a rough couple of days for the stock, losing 10.86% over the last week.

3. Denny's Corporation (DENN): Restaurants Industry. Market cap of $404.58M. This stock has a potential upside of 22.19%, when comparing its current price of $4.01 vs. its target price of $4.9. The stock has had a couple of great days, gaining 5.96% over the last week.

4. Arcos Dorados Holdings Inc. Cla (ARCO): Restaurants Industry. Market cap of $4.55B. This stock has a potential upside of 16.61%, when comparing its current price of $22.51 vs. its target price of $26.25.

5. P.F. Chang's China Bistro, Inc. (PFCB): Restaurants Industry. Market cap of $918.06M. This stock has a potential upside of 16.19%, when comparing its current price of $39.97 vs. its target price of $46.44. The stock is a short squeeze candidate, with a short float at 21.22% (equivalent to 9.1 days of average volume).

6. Bob Evans Farms Inc. (BOBE): Restaurants Industry. Market cap of $949.91M. This stock has a potential upside of 14.92%, when comparing its current price of $30.83 vs. its target price of $35.43. The stock is a short squeeze candidate, with a short float at 6.52% (equivalent to 12.52 days of average volume). The stock has gained 14.96% over the last year.

7. Wendy's/Arby's Group, Inc. (WEN):
Restaurants Industry. Market cap of $2.11B. This stock has a potential upside of 14.11%, when comparing its current price of $4.96 vs. its target price of $5.66. The stock has gained 15.1% over the last year.

8. Buffalo Wild Wings Inc. (BWLD): Restaurants Industry. Market cap of $1.15B. This stock has a potential upside of 11.5%, when comparing its current price of $61.28 vs. its target price of $68.33. The stock is a short squeeze candidate, with a short float at 12.14% (equivalent to 7.08 days of average volume). The stock has gained 71.24% over the last year.

9. AFC Enterprises Inc. (AFCE):
Restaurants Industry. Market cap of $410.52M. This stock has a potential upside of 10.61%, when comparing its current price of $16.5 vs. its target price of $18.25. The stock has had a couple of great days, gaining 9.8% over the last week.

10. CEC Entertainment Inc. (CEC):
Restaurants Industry. Market cap of $807.70M. This stock has a potential upside of 10.39%, when comparing its current price of $40.31 vs. its target price of $44.5. The stock has gained 5.33% over the last year.

11. Darden Restaurants, Inc. (DRI):
Restaurants Industry. Market cap of $6.91B. This stock has a potential upside of 9.38%, when comparing its current price of $50.32 vs. its target price of $55.04. The stock has gained 21.% over the last year.

12. Texas Roadhouse Inc. (TXRH):
Restaurants Industry. Market cap of $1.23B. This stock has a potential upside of 9.27%, when comparing its current price of $16.93 vs. its target price of $18.5. The stock is a short squeeze candidate, with a short float at 11.33% (equivalent to 8.96 days of average volume). The stock has gained 21.% over the last year.

13. Papa John's International Inc. (PZZA): Restaurants Industry. Market cap of $853.10M. This stock has a potential upside of 8.21%, when comparing its current price of $32.9 vs. its target price of $35.6. The stock has had a good month, gaining 10.21%.

14. DineEquity, Inc. (DIN):
Restaurants Industry. Market cap of $995.64M. This stock has a potential upside of 8.06%, when comparing its current price of $53.98 vs. its target price of $58.33. This is a risky stock that is significantly more volatile than the overall market (beta = 2.36). The stock is a short squeeze candidate, with a short float at 12.2% (equivalent to 12.13 days of average volume). The stock has gained 74.09% over the last year.

15. Bravo Brio Restaurant Group, Inc. (BBRG):
Restaurants Industry. Market cap of $427.57M. This stock has a potential upside of 7.29%, when comparing its current price of $21.81 vs. its target price of $23.4. The stock has gained 0.% over the last year.

* All data sourced from Finviz


Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: 15 Restaurant Stocks Undervalued by Analyst Estimates