3 Stocks To Buy In The Restaurant Industry

One market that will never cease to be important in civil society is food. People love to go out and spend money on juicy burgers, toasted sandwiches, and made to order carne asada tacos topped with avocado, cilantro, and onion. The Retail Restaurant Industry is in the top 25% in our Zacks Industry Rank, with 18 of the 55 companies having a Zacks Rank #2 (Buy) or better.

Today, I am going to profile two companies within this industry that have a Zacks Rank #1 (Strong Buy) and one that has a Zacks Rank #2 (Buy). These choices could potentially make great additions to your portfolio. Let's take a look at some important figures for the following companies:

1. Potbelly Corp. (PBPB –Snapshot Report)

Potbelly Corporation (PBPB – Snapshot Report) Stock Price | FindTheCompany

Potbelly Corp. is the Chicago based eatery with exquisite toasted sandwiches, fresh baked cookies, and tasty milkshakes. The sandwich company has a Zacks Rank #2 (Buy) and a VGM (value, growth, and momentum) aggregate grade of “B.”

In the earnings period ending in December 2015, Potbelly outperformed our earnings estimate by 33.33%. For their upcoming quarter ending in March 2016, Potbelly received one positive earnings revision, and an additional three positive revisions for the quarter ending in June 2016. For the year, Potbelly has four positive earnings revisions.

Over the past year, Potbelly has seen EPS growth of 33.33% and sales growth of 12.13%. The company has also improved its net margins quarter-over-quarter by 7.1% and its operating margins quarter-over-quarter by 5.2%. Furthermore, Potbelly's price change percentage relative to the S&P 500 over a 12 week period is 12.3%.

2. Dave & Buster's Entertainment, Inc. (PLAY – Snapshot Report)

Image via daveandbusters.com

Dave & Buster's Entertainment Inc. is America's premier “beercade” chain. If you love playing skee-ball, Cruis'n USA, and air hockey while drinking a beer and eating a burger, than Dave & Buster's is the place for you. The company has a Zacks Rank #1 (Strong Buy) and a VGM aggregate grade of “A.”

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