Generally, the food cost inflation has normalized each time, thereby providing Buffalo Wild Wings (NASDAQ:BWLD) with higher than anticipated earnings. The chart below shows the choppiness of earnings, partially from food costs and partially from seasonality of the business. This stock will again be a great buy if we can get another pull-back. It’s up almost 20% year-to-date.
Dunkin Brands Group Inc (NASDAQ:DNKN) operates Dunkin’ Donuts and Baskin Robbins locations worldwide. Since coming public again in 2010, Dunkin’ Brands is up 44.5%, beating the S&P 500’s return of 23.7%.
Dunkin’ spent years closing locations and getting its business in order to prepare for an expansion back into the same markets it exited. That time of expansion has come. Dunkin Brands Group Inc (NASDAQ:DNKN)’ has headed west again to fill the country with donuts, coffee, and ice-cream. This execution of growth has allowed Dunkin’ Brands to outperform the broader market, and should allow the company to continue such outperformance going forward. Also, one should keep in mind that they are just now starting to re-open in California. Successfully growing back into California alone would propel the stock higher.
Need an extra incentive? How about the 2% dividend yield that Dunkin’ provides while they continue their revival? That matches the 2% dividend that the SPY is giving you right now, while also providing a business that has a heck of a lot bigger growth opportunity.
As much as I like all three of these companies, it’s tough to buy them right now given that they are up 10%-20% thus far in 2013. However, all three of these companies have great growth drivers and a recent history of solid execution. If the market gives us a pull-back in the near future, these three stocks should be on your shopping list to buy.
Dave Zaegel owns shares of Chipotle Mexican Grill. The Motley Fool recommends Buffalo Wild Wings and Chipotle Mexican Grill. The Motley Fool owns shares of Buffalo Wild Wings and Chipotle Mexican Grill.