Scott breaks down restaurant stocks into three groups: (1) the "fresh new concept" - e.g. his top holding Buffalo Wild Wings (BWLD); (2) the "recycled, retread names" like Burger King, which he prefers to avoid; and (3) the steakhouses like Ruths Cris, which have "never performed well" because he believes they're too economically sensitive.
Here's the full video, which lends strong insight to Scott's investing process in this sector:
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McDonald's, Chuy's and Buffalo Wild Wings are held in client accounts as of September 26, 2012. These investments may or may not be currently held in client accounts. You should not assume that any investments identified were or will be profitable or that any investment recommendations or investment decisions we make in the future will be profitable.
Also, some investments discussed in this presentation are for illustrative purposes only and there is no assurance that the adviser will make any investments with the same or similar characteristics as any investments presented. The investments are presented for discussion purposes only and are not a reliable indicator of the performance or investment profile of any composite or client account. Further, you should not assume that any investments identified were or will be profitable or that any investment recommendations or that investment decisions we make in the future will be profitable.