Buffalo Wild Wings (BWLD), Cracker Barrel Old Country Store, Inc. (CBRL): These Restaurant Chains Have the Right Stuff

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Even after 25 years, customers continue to gravitate toward Outback’s steaks, appetizers, and Australian theme.  However, management has wisely diversified into other concepts, just in case fickle customers decide to change their love for a beef-heavy menu.  Based on current expectations, though, Bloomin’ Brands is expecting a further 5% increase in sales in 2013 as the company opens an additional 45 to 55 restaurants system-wide.  This diversified operator looks ready for the future.

Buffalo Wild Wings

Founded in 1982 on Ohio State University’s campus, Buffalo Wild Wings (NASDAQ:BWLD) has taken chicken wings to the next level, with almost 900 restaurants in the U.S. and Canada.  The company’s goal is to create a neighborhood gathering spot for watching television events with an open layout, full bar, and a phalanx of flat screen TVs.  Buffalo Wild Wings has also tied itself closely to the nation’s sports leagues, including its recent licensing deal with the NCAA for exclusive marketing tied to March Madness.

In FY2012, Buffalo Wild Wings (NASDAQ:BWLD) continued its solid revenue growth, although its profitability was somewhat hamstrung by a 63% rise in the average price of chicken wings.  For the year, the company reported increases in revenues and operating income of 34.4% and 13.5%, respectively, versus the prior year.  Buffalo Wild Wings (NASDAQ:BWLD)’ restaurants remained as popular as ever, with a strong 6.6% increase in comparable store sales.  Looking ahead, management is forecasting another year of growth in 2013 as the company opens 100 additional restaurants on its way to an eventual target of 1,700 domestic stores.

The bottom line

With thousands of casual dining options to choose from, diners generally choose establishments with great customer service and a theme that they can resonate with.  These three chains have built loyal followings to their value-priced menus over the past decade and belong on every investor’s watchlist.

The article These Restaurant Chains Have the Right Stuff originally appeared on Fool.com and is written by Robert Hanley.

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