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

MANAGEMENT EXECUTION

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

ANALYSIS

Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $49.2
Target stock price (averages with growth) $52.69
Target stock price (averages with no growth) $39.28
Target stock price (manual assumptions) $226.2

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

Buffalo Wild Wings, Inc. is the owner, operator and franchisor of restaurants. As of December 25, 2016, the Company's made-to-order menu items included 16 sauces and five seasonings, ranging from Sweet BBQ to Blazin. The Company's restaurants offer 20 to 40 domestic and imported beers on tap, including craft brews, and a selection of bottled beers, wines and liquor. As of December 25, 2016, the Company had company-owned or franchised restaurants in all 50 states and two Canadian provinces. Its franchised restaurants also operate in Mexico, Saudi Arabia, Philippines, Panama and the United Arab Emirates. The Company operates Buffalo Wild Wings, R Taco and PizzaRev restaurants, as well as sells Buffalo Wild Wings and R Taco restaurant franchises. In addition to traditional and boneless chicken wings, the Company's menu features a range of food items, including sharables, hamburgers, sandwiches, wraps, Buffalito soft tacos, and salads.

 

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.

I hope that this makes you a Confident Investor.

Buffalo Wild Wings [stckqut]BWLD[/stckqut] shares fell as much as 11% in after-hours trading on Tuesday after the company reported earnings that missed estimates pretty much across the board.

The fast-food chain posted adjusted earnings per share of $1.73, short of the forecast for $1.77, according to Bloomberg.

Revenues came in at $508.3 million, also missing the estimate for $530.8 million.

The company lowered its forecast for profits this year. It forecast full-year earnings per share in a range of $5.65 to $5.85, missing the projection for $6.10.

Same-store sales — at locations open for at least one year — also fell, by 1.7%.

Source: Buffalo Wild Wings earnings, Q1 - Business Insider

Buffalo Wild Wings’ [stckqut]BWLD[/stckqut] second quarter profits were down more than 9 percent and fell short of stock analysts’ estimates, as the restaurant chain coped with higher labor and chicken wing costs.

The Golden Valley-based company, known for its wings, beer and sports motif, posted second quarter net earnings of $21.5 million or $1.12 per share, down from $23.7 million or $1.25 a year ago.

Stock analysts polled by Thomson Reuters, on average, were expecting per share profits of $1.26.

Buffalo Wild Wings announced its earnings after the stock market closed Tuesday. On Wednesday, shares were up more than 13 percent in midday trading.Buffalo Wild Wings recorded sales of $426.4 million, up 16.5 percent over a year ago but short of the $429.3 million expected by analysts.

However, same-store sales, a key financial gauge, rose 4.2 percent over a year ago at stores owned by Buffalo Wild Wings and 2.5 percent at franchised stores — a better performance than analysts expected. Comparable sales take into account newly opened and closed stores.

Source: Buffalo Wild Wings shares soar despite 2Q miss - StarTribune.com

In the first quarter, Buffalo Wild Wings [stckqut]BWLD[/stckqut] reported a 19.8% increase in sales. Both new store and existing stores sales were quite strong. Same-store-sales at company-owned restaurants were up 7% while franchised restaurants grew by 6%.

While sales were up nearly 20% however, earnings were only up 2.6%. Operating margins were down by 170 basis points to 9.9%. Labor costs rose by 100 basis points to 29.6% of total sales. Cost of sales meanwhile rose by 200 basis points points to 28.5% sales, driven by a 40% increase in chicken wing prices following strong demand. Wing prices for the company were $1.92/lb versus $1.36/lb a year ago.

However, there is reason to believe that margins will return. Management reaffirmed its EPS growth guidance for the year of 18%. One could argue that management had already accounted for the impact of chicken prices given their previous estimates typically targeted around 24% growth.

Additionally, BWLD struggled to manage its labor costs as they staffed all locations with Guest Experience Captains. If this proves to improve sales enough to warrant the cost, the company can reasonably expect to keep it. If it is still a cost drag, it wouldn’t be too difficult to scale back down to historical levels.

... and later in the article...

While margin pressures are a primary factory to the current weak share price, these headwinds look temporary, or at least fixable. Now trading at a valuation not seen for some time, investors would be wise to consider BWLD for their portfolio.

Source: Buffalo Wild Wings Still a Great Value - GuruFocus.com

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.

I hope that this makes you a Confident Investor.