One of the stand out performers in the consumer discretionary sector this year has been Retail Food Group Limited (ASX: RFG). With a return of 19% the shares have outperformed the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) by some distance.

The franchisor of a number of brands such as Gloria Jeans, Donut King, Crust Gourmet Pizza and Pizza Capers released record half-year results in February, which has certainly contributed to the outstanding share price gains.

For the half-year period the company managed to increase its net profit after tax by 27% to $32 million. This was achieved through an increase in same-store sales and average transaction value of 1.7% and 3.7%, respectively.

In fact, all its brands except for its pizza franchises posted strong same-store sales growth over the period. I would imagine the incredible rise of Domino’s Pizza Enterprises Ltd. (ASX: DMP) would have been a big reason for that segment’s decline in same-store sales of 0.7% year-over-year.

Fortunately its lucrative coffee operations are the real bread-winners and they were firing on all cylinders. Which is vitally important considering its various coffee businesses represent just short of two-thirds of its underlying revenue.

I believe the future looks very bright for Retail Food Group. The company has big plans for international expansion which should allow it to continue to grow its earnings at a strong rate. In the past 10 years the company has managed to grow them at an impressive average of 16% per year.

Management sees significant opportunities for expansion into a number of new markets, and has plans to focus on extending its presence within India, Asia, Europe, the Middle East, and the United States. Currently its international operations account for 17% of its EBITDA, but in a few years I can see this increasing substantially.

I have been impressed with the growth of the company, which just doesn’t look like slowing any time soon. As of February the company has 2,509 outlets in operation, and has plans to grow this by a further 250 outlets by the end of its fiscal year.

Perhaps the number one reason that I feel this is a great investment is that as well as potential share price gains in the future, the company pays a dividend which is comparable to that of Commonwealth Bank of Australia (ASX: CBA). The company is forecast to pay a fully franked dividend of 5.4% in FY 2016, which is almost as good as CBA’s estimated 5.6% FY 2016 dividend.

In its half-year report management provided full year guidance of net profit after tax growth of 20%. The way the company is performing right now, I would not be surprised to see it better that. At just 13x trailing earnings I believe Retail Food Group is a great investment that is comparable to these three recent blue chip picks.

Foolish takeaway

In my opinion, Retail Food Group satisfies the needs of both growth and income investors. Thanks to its international expansion and capital light business model I see the company being able to continue this strong level of growth for many years to come.

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Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia owns shares of Retail Food Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.