Exclusive Analysis for the Discerning Investor
Click on the link below to view our equity report on Buffalo Wild Wings: << Our 16-page Report on Buffalo Wild Wings (BWLD) Also, please view our assessment of recent quarterly earnings and our long-term view on the growth potential of Buffalo Wild Wings in the ‘Related Articles’ section below.
Buffalo Wild Wings (BWLD) reported strong third-quarter results Wednesday that showed impressive revenue and earnings expansion. We continue to believe in the long-term growth story of “B-Dubs” and would add to our position in our Best Ideas portfolio on any significant weakness in the shares. Our $74 fair value estimate remains unchanged. Total revenue for the third quarter increased over 30% on the heels of a 5.7% same-store sales increase in company-owned restaurants and a 4.2% jump at franchised restaurants (the company had 44 additional company-owned restaurants and 41 additional franchised restaurants at the end of the quarter versus the prior-year period). Average weekly sales for company-owned restaurants were up 11.4% in the period, while the measure advanced 4.8% for franchised locations – both … Read more
Buffalo Wild Wings (BWLD) reported decent second-quarter results Tuesday that showed impressive top-line expansion but some cost pressures due to its store-expansion plans. We continue to believe in the long-term growth story of “B-Dubs” and would add to our position in our Best Ideas portfolio on any significant weakness in the shares as a result of the report. Total revenue for the second quarter increased over 26% on the heels of a 5.9% same-store sales increase in company-owned restaurants and a 2.7% jump at franchised restaurants (the firm operated 43 additional company-owned restaurants versus the same period a year ago). Average weekly sales for company-owned restaurants were up nearly 12% in the period, while the measure advanced 4% for franchised … Read more
This article originally appeared on Seeking Alpha. Please view disclosures: https://seekingalpha.com/article/271459-sizing-up-the-long-term-growth-potential-for-buffalo-wild-wings A restaurant focused on the concept of wings, beer, and sports seems like nothing special, but Buffalo Wild Wings (BWLD) certainly has carved out a solid presence in this arena. With each restaurant boasting an extensive multi-media system (projection screens, 50 televisions, etc.), a full bar and open layout, “B-Dubs”, as it is commonly known, has become the place of choice for many social chicken-wing lovers. Thanks in part to its widespread appeal, the firm has experienced tremendous growth during the past number of years as revenue has more than doubled since 2006. Management also expects to open more than 100 new restaurants in 2011. But how long can this … Read more
A previous version of this article appeared on our website July 21, 2013. Refreshed and updated throughout, as of July 2018. By Brian Nelson, CFA After earning my MBA at the University of Chicago Booth School of Business and training stock and credit analysts from large organizations over the past decade or so, I have heard just about every question (though I admit I am still surprised by many things and remain a very humble student of the markets). I’ve also spent years perfecting the discounted cash flow process for large research organizations such as Morningstar and studied under one of the most famed aggressive growth investors of all time, Richard Driehaus. My knowledge runs the gamut from value through … Read more
Let’s take a look at the recent earnings reports and outlooks for three key holdings in the Best Ideas Newsletter portfolio. By Brian Nelson, CFA Visa
The equity markets have welcomed a strong earnings season thus far, but valuation risk and tail uncertainties remain, not the least of which is the possibility of failed tax reform in the US. By Brian Nelson, CFA Money is cheap, and investors are partying like its 1999 all over again. The latest move on the trading vehicle for the S&P 500, the SPDR S&P 500 ETF (SPY) is yet again approaching new highs. We like the ongoing momentum in the stock market, something that we outlined in our “shocking” predictions for 2017, but we continue to reiterate our cautious stance, not only with respect to underlying valuations but also as it relates to the possibility of failed tax reform in … Read more
The stock-selection methodology, the Valuentum Buying Index, is as simple as an efficacious stock-selection methodology can be. However, that doesn’t mean that the Valuentum Buying Index is simple. The Valuentum Buying Index considers the rigors of a discounted cash-flow process, the considerations of relative valuation techniques, and the transparency of pricing information via market indicators. Yet despite its straightforwardness, the Valuentum Buying Index casts a discerning eye on the equities it monitors. The Valuentum Buying Index does not make a ‘call’ on every company. It only views a 9 or a 10 on the measure to be actionable on the long side, and it only views a 1 or 2 on the measure to be actionable on the short side. … Read more
The Valuentum Buying Index, our stock selection methodology, identifies firms that are 1) undervalued on a discounted cash-flow basis (e.g. three-stage fully-populated valuation model with complete financial statements), 2) undervalued on a relative value basis versus peers and the firm’s closest competitors, where applicable, and 3) just starting to show interest by investors as measured by technical/momentum indicators, providing the mechanism to drive a firm’s price to its fair value. Without the latter component, investors have a heightened risk of holding an underpriced stock for an extended period of time, one that may turn out to have little prospects for eventual price-to-fair-value convergence. Once a firm is added to the Best Ideas portfolio or Dividend Growth portfolio, generally with a Valuentum … Read more