Chipotle Mexican Grill, Inc. (CMG), Panera Bread Co (PNRA) – Better than Burgers: Three Stocks that Look as Good as They Taste

The company is also improving its beer service. It is working with craft brewer Redhook to create a new draft beer called Game Changer. According to CEO Sally Smith, this premium craft beer is “designed to go perfectly with our (Buffalo Wild Wings’) flavorful wings while watching a game.” The beer will launch this summer and will help Buffalo Wild Wings improve beer sales and margins.

But isn’t Buffalo Wild Wings more casual dining than fast-casual? Buffalo Wild Wings is casual dining, but PizzaRev is fast-casual. Buffalo Wild Wings just purchased a minority share in the fast-casual pizza restaurant that is quickly gaining momentum in California. As PizzaRev continues to develop, Buffalo Wild Wings will have the option to increase capital investments and build its own PizzaRev locations. PizzaRev has a lot of potential and could be a major source of profit down the road.

With consistent same-store sales growth, wing moderation, and beer innovations, Buffalo Wild Wings is expecting 17% net earnings growth by the end of the year. With a forward P/E of 21.34 and a PEG of 1.39, I think that the stock is fairly priced. The potential of PizzaRev is what I think makes the wing cooker a good long term investment.

Conclusion

Chipotle, Panera, and Buffalo Wild Wings all deliver quality food quickly. They have all successfully created strong brands and are still expanding. Consumers are willing to pay a premium for higher quality ingredients which is driving the fast growth of the fast-casual dining market. The fact that these companies are well managed and are thriving in a growing market make them good investments for the long run.

Ben Popkin has no position in any stocks mentioned. The Motley Fool recommends Buffalo Wild Wings, Chipotle Mexican Grill, and Panera Bread. The Motley Fool owns shares of Buffalo Wild Wings, Chipotle Mexican Grill, and Panera Bread.

The article Better than Burgers: Three Stocks that Look as Good as They Taste originally appeared on Fool.com and is written by Ben Popkin.

Ben is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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