(Restaurant stock winners of 2010 article updated with broker action on Chipotle.)
NEW YORK ( TheStreet) -- Stocks in the restaurant sector mostly moved higher in 2010, but even as the sector rode the overall market recovery a group of restaurateurs clearly stood out as the year's industry winners.
Affluent Americans returned to their spending ways in 2010 as
The PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ), PowerShares Dynamic Consumer Discretionary Sector Portfolio (PEZ) and PowerShares Dynamic Food & Beverage Portfolio (PBJ), exchange-traded funds that count restaurant stocks as at least 10% of their portfolio, soared 37.4%, 27.9% and 27.6%, respectively, so far in 2010. By comparison, the S&P 500 rose just 8.2% in the same time period with the SPDR S&P 500 (SPY) gaining 8.9%.That trend boded particularly well for restaurants in what West calls the "upper-mid-scale-casual" segment in 2010. Restaurant chains like Chipotle Mexican Grill (CMG - Get Report), Panera Bread (PNRA) and Cheesecake Factory (CAKE) grew revenue by 19.7%, 13% and 3.4%, respectively, in the first three quarters of the calendar year. Fourth quarter sales are expected to show another 20.5% year-over-year bump at Chipotle, a 13.7% increase at Panera and 4.3% at Cheesecake Factory. That's because those mid-level restaurant concepts cater to a broader base of consumers, West told TheStreet, as opposed to most fast food chains -- industry lingo calls them quick-service restaurants, or QSRs -- which appeal mainly to minorities and people in the 18- to 25-year-old range, demographics disproportionately affected by high