With many restaurant chains, new stores are the
only driver for growth. While Ruth's management
believes the market could one day accommodate 250
Ruth's Chris Steak Houses, the company is also
growing sales in existing locations. In 2006,
same-store sales climbed 6.2%, and only 0.7% of
that increase was attributable to higher prices.
Even in the first quarter, in which most retailers
and restaurants were hurt by February's bad
weather, the company said traffic has been positive
this year, something that many restaurants are
struggling to achieve.
When looking at consumer stocks, Jim Margard, chief
investment officer of the Rainier Small/Mid Cap
Equity fund, prefers those that are distinguished
from their peers.
"That often leads you to companies in the premium
space," he says. Other first-class names in his
portfolio include Tiffany's (TIF - Cramer's Take -
Stockpickr), Sotheby's (BID - Cramer's Take -
Stockpickr) and Coach (COH - Cramer's Take -
Stockpickr).