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This week, I decided to hand pick three stocks within the restaurant sector displaying best-of-breed characteristics of expansion and growth during what was a dismal ’09. Although other restaurants saw revenue declines, these three restaurants satisfied an increasing appetite in cities all over the country. Moreover, these restaurants proved they are off to a great start in the Next Decade.
B-Dubs: Buffalo Wild Wings (BWLD): ~$46/share
Why is there a line out the door? The demand: a great sports bar experience with chicken wings and a variety of sauces.
The earnings estimate is $.50/share vs. actual earnings of $.43/share the same quarter a year ago — a 16% year-over-year increase. B-Dubs’ quarterly earnings will be released February 11th, 2010.
Chipotle (CMG): ~$98/share
Why is there a line out the door? The demand: quick-service burritos, tacos, fajitas, and ‘burrito bowls’.
The earnings estimate is $.79/share vs. actual earnings of $.52/share the same quarter a year ago — a 52% year-over-year increase. Chipotle’s quarterly earnings report is slated to be released on Feb 8th, 2010.
Panera Bread (PNRA): ~$68/share
Why is there a line out the door? The demand: ‘fast casual’ hand-crafted breads, sandwiches, salads and drinks.
The earnings estimate is $.88/share vs. actual earnings of $.84/share the same quarter a year ago — a 5% year-over-year increase. Panera’s quarterly earnings will be released on Feb 11th, 2010.
These rising restaurants have displayed three important growth measures during the past year: increasing revenue, expanding their number of stores, and maintaining healthy balance sheets during an unhealthy economy.
Disclosure: No positions in the stocks mentioned.
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