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Domino’s Pizza, Inc. (DPZ) on Top of the Fast Food Trio: Yum! Brands, Inc. (YUM), Dunkin Brands Group Inc (DNKN)

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Recent financials of Domino’s Pizza, Inc. (NYSE:DPZ) hint at its ever-growing share in the overall restaurant industry. As it wrapped up FY 2012, the pizza chain proved to have generated surging system-wide sales, with a remarkable 6.2% increase in its overall operating income. Its chronic growth is ascribable to the single-digit increases of its store sales, particularly in the United States, where sales are triggered by the almost doubling number of its stores operating worldwide. The restaurant industry giant currently operates 5,000 stores in over 70 countries around the world. It also helps that these stores are situated in the most strategic locations, where both dine-in and carryout pizza practices are very well adopted.

Domino's Pizza, Inc. (NYSE:DPZ)

Camouflaged downside of Dunkin’s snappy growth

Dunkin Brands Group Inc (NASDAQ:DNKN), the owner and operator of one of the strongest donut chains in the world, Dunkin’ Donuts, can boast of the 6.1% increase in its revenue and the 52-week 15.3% jump in its adjusted operating income, juiced up by the over 665 new restaurants that it opened in fiscal year 2012. But looking at its financials, it is quite open and shut that there could be an underlying downside. First, its most recent price to earnings ratio of 53.81 indicates that the business is extremely overpriced, and its short term growth that has led to its over-aggrandizement accounts for it. While the price to earnings ratio of its stocks this year is seen to hit a more legit integer of 20.89, the odds of achieving that reasonable value will remain naught unless its stock manages to be at a standstill for two consecutive years.

The condition does not automatically rule out the possibility of Dunkin Brands Group Inc (NASDAQ:DNKN) rewarding shareholders, but taking the business as a buy is still clear as dishwater at the moment. To ensure good returns, investors have yet to see if this newcomer will manage to expand and get the bigger share of the pie in the coming years.

Wrong formula for Yum! Brands

Another component of the quick-service trio, Yum! Brands, Inc. (NYSE:YUM), is a strong contender. The firm recently reported a full-year 2012 EPS growth of 13%, marking its 11th year of being on easy street. Its strength in the emerging markets is seen to serve the major driving force for its future growth, especially now that China is making a run for being the highest contributor in its international sales with an accounted 50% of its total operating profit in 2012.

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