Appetizing Earnings Equal Meaty Profits

Excuse me for this article's jacked-up volume, but the more I wrote, the louder my stomach growled. This one is certain to whet your appetite for good food and juicy profits.

In light of impressive earnings, it's no surprise that the retail-restaurants industry continue to light up the markets.

It's one thing not to upgrade your computer or buy a new car during rough financial times, but who can turn down a 2-for-1 meal or "Kids Eat Free" offer from one of your favorite family friendly restaurants?

Apparently, the ability for smaller restaurants to provide more burgers for your buck has paid off big time.

Shares of restaurant chain Famous Dave's of America (NASDAQ: DAVE) jumped nearly 32% after the company reported a 58% first-quarter jump in profits this morning. 

The company attributed its profit to managing its costs well. Food costs dropped partly because as commodity prices have dipped recently, Dave's bought their ingredients with shorter contracts and have been able to take advantage of the drop in prices.

A number of sit-down chains have reported higher profit in the first quarter by cutting costs even as sales continue to decline. Consumers, hurt by the recession, have continued to forgo a meal out at a sit-down chain in favor of fast-food or eating at home.

Even without a boost from a profitable earnings report, Buffalo Wild Wings Inc. (NASDAQ: BWLD) closed out Wednesday with an 11% gain on high volume of around 822,000 compared to an average 398,000.

When the company reports it first-quarter results next week, analysts expect earnings per share to be 3 cents up from three months ago. Analysts look for next year's profit to be 23% better than the consensus for this year.

I only have one bone of contention to pick with Minnesota-based Buffalo Wild Wings. On its menu, it claims to be "the undisputed champions in our class" serving award-winning, Buffalo, New York-style wings.

As someone born and raised in Buffalo, the best wings in the world are deep fried and smothered in hot sauce in Buffalo. If anyone out there disagrees, I'd be happy to sample a 20-piece basket from Buffalo Wild Wings.

Aside from that, I think BWLD is a winner and would be a great addition to your portfolio.

Although P.F. Chang's (NASDAQ: PFCB) is considered more upscale and higher-priced than fast-food restaurants, it still bucked the trends with a first-quarter jump of 38%. Its earnings per share of 56 cents handily topped Wall Street's target of 33 cents per share. The news sparked shares nearly 21%.

Finally, here's a restaurant with momentum and clear plans for expansion. Riding the retail food industry's current wave, SpicyPickle (OTC BB: SPKL) is up 17.6% as of this writing today.

It's about time that plans for aggressive expansion have manifested themselves in higher stock prices (currently 20 cents per share). A list of future projects disclosed on Wednesday should catch even more investors' attentions. I know it caught mine.

In a nutshell, SpicyPickle disclosed three new stores in Western Canada, two new franchisees stateside, two new locations under construction, and one new opening.

As word gets out, stock prices will begin to climb. SPKL would round out an appetizing smorgasbord for your portfolio.