A Checklist for Profiting From Retail, Restaurant Stocks

2. Total Sales Growth

Where same-store sales numbers reveal the consistency of sales for existing stores, total sales growth illustrates the broad execution of the company's business model. Total sales growth is a combination of same-store sales plus new store sales growth -- where "new" store growth is for newly opened stores and stores not open continuously for 13 months (these new stores includes stores acquired from other companies.)

Where investors can find this data: This data can be quantified from the company's income statements, quarterly earnings press releases and SEC filing. You can find these documents on the company's Web site or on the company's quote page on financial sites, such as TheStreet.com or Yahoo! Finance.

3. Organic Growth

Another way of looking at total growth is the concept of organic growth. Organic growth is total growth generated from the company excluding sales generated through mergers or acquisitions or takeovers. In other words, organic growth equals total sales growth minus growth from mergers, acquisitions and takeovers.

Organic growth is important because it will give us a clear indication how well the company can grow and expand its sales, by relying solely on its business model and existing resources.

Where investors can find this data: Organic growth is sometimes provided by a company's management team on earnings calls. However, the information is best ascertained by reading analysts research reports.

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