Check out CHGO, a restaurant chain in Southern California, the Pacific Northwest, Hawaii, and Boulder, CO. The stock is undervalued in every measure of valuation.
They have developed a large pizza restaurant format with a micro-brewery, that is proving to be highly successful.
The only drawback I see is very small capitalization, and there is no analyst coverage. I expect this to change, as CHGO's top line growth, high gross margins, etc. speak for themselves, and sooner or later there will be more coverage. Short term, earnings will be reduced due to pre-opening expenses, etc.
Here's a link to a comparison of CHGO with the sector:
yahoo.marketguide.com |