America's 10 Fastest-Growing Restaurant Chains

By Dan Moskowitz | June 26, 2015

“Where’s the beef?” How can it be that burgers have almost no relation to the fastest growing restaurant chains in the country? You could say that burgers, and to a lesser extent pizza, have matured. But the real answer is the rise of the health-conscious consumer. The days of people not caring about what they eat are over. Most consumers want natural and organic food, not greasy, fried foods. The following list of restaurants are ranked by sales growth. You might be surprised by what company proudly owns that coveted top spot. You might also find some investing opportunities along the way. (For related reading, see: Most Iconic Restaurant Chains That No Longer Exist.)

All numbers below as of June 24, 2015. Information via Nation’s Restaurant News.

10. Buffalo Wild Wings Inc.

Sales Growth: 16.3%

Total Unit Growth: 7.6%

Estimated Sales Per Unit (ESPU) Growth: 6.7%

At the exact time of this writing, the S&P 500 was down 14 points intraday, yet Buffalo Wild Wings Inc. (BWLD) was up 0.47%. This is much more likely to happen with fast-growth stocks. Buffalo Wild Wings also has $113.62 million in total cash and no long-term debt. On the other hand, there is a 13.20% short position, which could relate to the stock’s relatively high valuation as it trades at 32 times earnings. Despite rampant growth, BWLD has depreciated 4.31% over the past year and as a growth stock, there is no dividend yield. (For more, see: Investors Feasting on Restaurant Stocks.)

9.



Zaxby’s

Sales Growth: 17.2%

Total Unit Growth: 11.0%

ESPU: 8.5%

Zaxby’s, a chain of franchise fast casual restaurants serving chicken fingers, wings, sandwiches and salads, is expanding west domestically, which should lead to continued growth. Its has over 600 locations and opened 65 last year, 49 of which were franchised, which helps reduce costs. Zaxby’s is a private company.

8. Casey’s General Stores

Sales Growth: 17.7%

Total Unit Growth: 4.0%

ESPU: 13.6%

Casey's General Stores, Inc. (CASY) owns and operates over 1,850 convenience stores in 14 Midwestern states. The company has grown its top line consistently on annual basis over the past three years and its bottom line has been steady. The debt-to-equity ratio is respectable at 0.97, the short position is relatively low at 3.20, and there is a 0.90% yield. The most impressive stat is that the stock has appreciated 37.01% over the past year. (For more, see: Can Casey's Ring Up Better Cash Flow?)

7. Jimmy John's

Sales Growth: 19.8%

Total Unit Growth: 17.0%

ESPU: 3.0%

Jimmy John’s is now the third-largest sandwich shop in the United States behind Subway and Arby’s. Jimmy John’s likes to be known for being “freaky fast.” All bread is baked and meats and vegetables chopped and sliced in-house.