Buffalo Wild Wings plans more cost cuts, refranchising

Owen Stevens
April 28, 2017

Credit Suisse Group AG decreased their target price on Buffalo Wild Wings from $175.00 to $165.00 and set a "neutral" rating on the stock in a report on Wednesday, January 25th. As of March 31st, there was short interest totalling 1,681,701 shares, a decrease of 7.0% from the March 15th total of 1,808,759 shares.

The new cost-cutting program, devised with the help of a major consulting firm that conducted a review of the business, comes as Buffalo Wild Wings is preparing for a showdown at its annual meeting in June.

On 3/15/2017 Sally J Smith, CEO, sold 2,000 with an average share price of $150.00 per share and the total transaction amounting to $300,000.00. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Three research analysts have rated the stock with a sell rating, seventeen have issued a hold rating and nine have given a buy rating to the company's stock.

Hedge funds and other institutional investors have recently modified their holdings of the stock.

Buffalo Wild Wings, however, denied the accusation today in its own statement saying that a third party - Research Data Group - calculated the TRCG using the same methodology it has used since it began working with the chain in 2006. This repurchase authorization allows the restaurant operator to repurchase up to 14.2% of its stock through open market purchases. Company-owned restaurant sales for the first quarter increased 5.2%.

The stock increased 0.37% or $0.6 during the last trading session. Finally, Norges Bank bought a new stake in Buffalo Wild Wings during the fourth quarter valued at about $21,888,000.

BWLD has been the topic of several recent research reports. Zacks Investment Research raised Buffalo Wild Wings from a "sell" rating to a "hold" rating in a research report on Thursday, January 26th.

02/08/2017 - Buffalo Wild Wings, Inc. had its " rating reiterated by analysts at Wedbush.

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Out of 35 Wall Street analysts rating Avago Technologies Limited, 33 give it "Buy", 0 "Sell" rating, while 2 recommend "Hold". Over the last three months, the shares of the company have changed 20.65% and performed 97.84% over the last six months.

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Buffalo Wild Wings also cut its full-year earnings expectations by about 2%, because of "competitive headwinds and inflation on wings". In the final minutes of trading on Wednesday, shares hit $162.35, a rise of 12 percent in the last 12 months. Buffalo Wild Wings earned a coverage optimism score of 0.23 on Alpha One's scale.

In the executive summary on page 29 of its definitive proxy statement, Buffalo Wild Wings provided a chart comparing its 5-year total shareholder return (TSR) to the S&P 600 Restaurant Index, indicating that shares of BWLD had outperformed the S&P 600 Restaurant Index.

In its proxy statement this past Friday, the board argued that the company has an outstanding performance record, despite what the hedge fund activist says. Buffalo Wild Wings has a 12 month low of $128.14 and a 12 month high of $175.10. The company has a market cap of $2.82 billion, a PE ratio of 31.63 and a beta of 0.96.

Buffalo Wild Wings, Inc. has a 50 day moving average of 151.69 and a 200 day moving average of 154.13.

Buffalo Wild Wings (NASDAQ:BWLD) last posted its earnings results on Tuesday, February 7th.

The wing and beer joint reported Wednesday that first quarter adjusted earnings crashed 19.1% to $1.44 a share, badly missing analyst estimates for $1.69 a share.

04/20/2017 - Buffalo Wild Wings, Inc. had its " rating reiterated by analysts at Wells Fargo. As a result of these initiatives, we expect to realize $40 to $50 million in cost savings over the next two years.

The Minneapolis-based company said it had net income of $1.25 per share. Analysts anticipate that Buffalo Wild Wings will post $5.77 EPS for the current year.

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