Three Alternatives to Buffalo Wild Wings

Shares of Buffalo Wild Wings BWLD and Chipotle Mexican Grill CMG, a pair of darlings in their industry, have plunged. Buffalo Wild Wings was down more than 10 percent Wednesday afternoon, following a disappointing earnings report late Tuesday, and was more than 17 percent lower in the past week. Chipotle posted so-so results last week, and the share price has tumbled about 25 percent since then. For investors who feel this is a correction, the pull back in these two restaurant stocks presents an opportunity to buy in before they continue to march higher. But for those who feel the ride may be over, it could be time to look for some alternatives. Here we consider Cracker Barrel Old Country Store CBRL, AFC Enterprises AFCE and Brinker International EAT. Cracker Barrel Old Country Store Like all three of these stocks, Cracker Barrel has pulled back in the past week, in this case about 5 percent. The company has a market capitalization of about $1.4 billion. Its price-to-earnings (P/E) ratio is less than the industry average. The long-term earnings per share (EPS) growth forecast is more than 10 percent and the return on equity is almost 29 percent. The dividend yield is more than 2.5%. Five out of eight analysts polled by Thomson/First Call recommend buying the stock. The consensus price target is more than 12 percent higher than the current share price. The stock has outperformed Denny's DENN and the S&P 500 over the past six months. AFC Enterprises The share price has pulled back more than 7 percent in the past week. This Atlanta-based operator of the Popeyes Chicken & Biscuits chain has a market cap is more than $500 million. The P/E ratio is higher than the industry average, but so is the operating margin. The long-term EPS growth forecast is about 12 percent, and the return on equity is a whopping 163 percent. Still, analysts seem to think the stock has some room to run, as their consensus price target is more than 13 percent higher than the current share price. Over the past six months, the stock has outperformed competitor Yum! Brands YUM, which operates the KFC chain, and it has outperformed the broader markets. Brinker International The share price of this operator of the Chili's Grill & Bar chain has pulled back from a recent multiyear high, but it is still almost 18 percent higher year to date. The company is headquartered in Dallas, has a $2.3 billion market cap has a dividend yield of about 2 percent. Its long-term EPS growth forecast is a more than 14 percent, and the return on equity of more than 36 percent. The P/E ratio is less than the industry average. But note that short interest is more than 9 percent of the float. And the consensus price target on Brinker is more than 5 percent higher than the current share price. Still, over the past six months, the stock has outperformed competitors such as Darden Restaurants DRI and DineEquity DIN. See also: KeyBanc Initiates Coverage on Restaurant Stocks