'Fat guy' stocks see big gains

A portfolio of these high-calorie stocks would see double-digit increases.

By Kim Peterson Feb 29, 2012 2:16PM
Image: Person on scale (© Purestock/SuperStock)Some enterprising fund manager needs to create the "fat guy fund" with stocks focused on pizza, burritos, wings and beer. The fund would be an instant hit, because those stocks have performed very well this year.

The idea came from private trader Joey Fundora, who tweeted this week about a "fat guy fund" that could hold the following stocks: Domino's Pizza (DPZ), Chipotle Mexican Grill (CMG), Buffalo Wild Wings (BWLD) and the ADR shares of Fomento Economico Mexicano (FMX).

I think he's on to something here. Look at the six-month returns of these high-calorie stocks:
  • Domino's: Up 43%
  • Chipotle Mexican Grill: Up 28%
  • Buffalo Wild Wings: Up 42%

Get Jim Cramer's take on Domino's excellent fourth-quarter earnings -- and why the company is a technology stock -- in the following video.


Post continues below.

The only odd choice here was Fomento Economico Mexicano, also known as Femsa. The problem is that Femsa isn't really a beer company. It's the world's No. 2 bottler of Coca-Cola, and it runs convenience stores in Latin America. Heineken bought Femsa's beer operations in 2010, giving Femsa a 20% stake in the Heineken group.

A better beer choice for the fat-guy fund would be Budweiser maker Anheuser-Busch Inbev (BUD), which has seen a 23% share gain in six months. Or even Boston Beer Co. (SAM), which is up 18% in six months, although the stock has plateaued lately.

Fundora's point, although made in jest, is well taken. The economy is coming back and people have more money for the small luxuries in life, including those high-calorie treats.

Oh, and another stock on fire lately is Vivus (VVUS), which is developing an important new weight-loss drug. Coincidence?

3Comments
Feb 29, 2012 6:20PM
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You'd probably feel a little smarter Kim had you told us to buy these stocks a year ago then huh?
Feb 29, 2012 6:54PM
Feb 29, 2012 7:08PM
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It should be called a "Fat Folks Fund", including kids and teenagers as a prof at the U of N Carolina calls his book, "The World is Fat"...Dr. Popkin is an authority on global nutrition.  As for burritos,  the famous Mission Inn in Riverside, Calif. which covers an entire block, was saved years ago by a entrepreneur, Duane Roberts, who made millions making frozen burritos, among other foods.  Domino's, Chipolte and several others are always busy, it seems to me.  A "green" McDs in my hometown has to be the busiest eaterie in town, off and on from 5am.  (The solar panels over the parking lot are Chinese, of course).  Another busy restaurant is an Applebee's. 
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