The explosive growth in up and coming chains like
The turnaround is going to take some time though and as Wendy's slowly tweeks its approach, Five Guys and others will no doubt be happily stealing customers.
Fast casual dining stocks like Chipotle Mexican Grill
Investors will probably see less performance out of these stocks going forward as profits are taken and growth slows. Fear not though, there are still some overlooked hamburger stocks poised to sizzle that could deliver some super-sized returns.
One is Red Robin Gourmet Burgers (RRGB)
Successful Burger Works numbers could really drive Red Robin's valuation. Red Robin's stock is up nearly 60% in the past year, but based on Friday's close at $33.42, it's still below a 52-week high of $39.32 and is trading at a forward price-to-earnings multiple of 18.9X.
Red Robin is due to report its fiscal fourth-quarter results this coming Thursday, and Wall Street is mildly bullish ahead of the numbers with 6 of the 10 analysts covering the stock at strong buy (4) or buy (2), and the median 12-month price target is at $37, implying potential upside of 10.7% from current levels.
Meantime, Frisch's Restaurants (FRS)
Although Big Boy profits have declined, two new Big Boy restaurants opened recently. The iconic Big Boy was also featured in a Chevy ad during the Super Bowl. Frisch's is not heavily covered by analysts, but the two that cover the company both have buy ratings.
TheStreet Ratings also recently upgraded the stock to buy from hold because of its attractive valuation levels, largely solid financial position and reasonable debt levels. The stock is flat for the past year, and trades at a forward price-to-earnings multiple of 10.7X.
There's also BJ's Restaurants (BJRI)
BJ's opened 9 new restaurants in the past year. Its price points are similar to Buffalo Wild Wings and Chili's, between $12.00 to $13.00 for entrees. The menu is more than burgers, but burgers account for 12% of sales. The company is also known for its brew house concept, which adds to sales by taking advantage of the craft beer craze.
It is a contemporary and fresh concept without a chain image. BJ's believes it can nearly double locations in the 13 states, and currently have plans to open 15 new restaurants. The stock is up 43% for the past year, but still trades well below its 52-week high of $56.64 set back in July. BJ's is due to report its fiscal fourth-quarter results on Feb. 16.-
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