The Retail Food Group Ltd (ASX: RFG) share price has soared 47.5% so far year-to-date, with the share price rising from around $4.60 to the current price of $6.93.

That has come on the back of strong revenue growth over the past 12 months.

The franchisor with brands such as Gloria Jeans, Michel’s Patisserie, bb’s Café, Pizza Capers and Crust Gourmet Pizza, reported 31% growth in revenues for the 12 months to end of June 2016. Net profit was up 79% and dividends rose 18%. When many commentators were lamenting the lack of growth in revenues, Retail Food showed that some companies were still delivering if investors looked outside the usual suspects.

Even better for shareholders was the company’s forecast for a 20% increase in net profit after tax for the 2017 financial year.

Retail Food Group 1 year Chart Sep 2016

Source: Yahoo Finance

It seems many investors had underestimated Retail Food, perhaps overshadowed by the phenomenal results achieved by Domino’s Pizza Enterprises Ltd (ASX: DMP) in the past several years.

However, it seems some investors have caught on now, and with the company trading on a P/E ratio of just 17.2x, well below Domino’s 70.8x, it could be worthy of adding to your watchlist.

3 better bets than Retail Food Group?

Discover The Motley Fool's Top 3 blue chips for 2016. These 3 'new breed' shares pay fully franked dividends AND offer the prospect of significant capital appreciation. Simply click here to gain access to this comprehensive FREE investment report.

No credit card required!

HOT OFF THE PRESSES: Motley Fool’s #1 Dividend Pick for 2017!

With its shares up 155% in just the last five years, this ‘under the radar’ consumer favourite is both a hot growth stock AND our expert’s #1 dividend pick for 2017. Now we’re pulling back the curtain for you... And all you have to do to discover the name, code and a full analysis is enter your email below!

Simply enter your email now to receive your copy of our brand-new FREE report, “The Motley Fool’s Top Dividend Stock for 2017.”

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our https://www.fool.com.au/financial-services-guide">Financial Services Guide (FSG) for more information.

Motley Fool contributor Mike King has no position in any stocks mentioned. You can follow Mike on Twitter @TMFKinga

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.