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Company name Buffalo Wild Wings
Stock ticker BWLD
Live stock price [stckqut]BWLD[/stckqut]
P/E compared to competitors Fair

MANAGEMENT EXECUTION

Employee productivity Poor
Sales growth Good
EPS growth Good
P/E growth Poor
EBIT growth Good

ANALYSIS

Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $275.71
Target stock price (averages with growth) $302.01
Target stock price (averages with no growth) $136.91
Target stock price (manual assumptions) $275.33

The following company description is from Google Finance: http://www.google.com/finance?q=bwld

Buffalo Wild Wings, Inc. is an owner, operator, and franchisor of restaurants. The Company provides a variety of flavored, menu items including New York-style chicken wings. The Company’s restaurants include multi-media system, full bar and open layout for sports fans and families. The open layout of its restaurants offers dining and bar areas that provide distinct seating choices. The Company owns and operates 434 company-owned and franchises 558 Buffalo Wild Wings restaurants in North America (United States and Canada). The Company’s restaurants range in size from 3,900 to 9,800 square feet, with a typical size of approximately 6,200 square feet.

 

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in Buffalo Wild Wings as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.

How was this analysis of Buffalo Wild Wings calculated?

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

  • Stock price at the time of the calculation: $178.54
  • Growth: 0.2
  • Current EPS (TTM): $4.95
  • P/E: 36
  • Future EPS Calc: $12.31
  • Future Stock Price Calc: $443.41
  • Target stock price: $275.32

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I hope that this makes you a Confident Investor.