PLKI

Buffalo Wild Wings Should Go Private and Hasbro Should Buy Mattel…But at the Right Price

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Image Source: Hasbro There is a lot happening across the M&A landscape as of late. Buffalo Wild Wings has reportedly received a go-private offer, while speculation is swirling that Hasbro is looking to gobble up Mattel. We like the prospects of both scenarios. However, price will always matter. Buffalo Wild Wings should hold out for the very best offer, while Hasbro should be very careful not to overpay for assets that may be past their prime. By Brian Nelson, CFA Buffalo Wild Wings (BWLD) has long been a favorite of ours. You have to read, “3 Reasons Why Buffalo Wild Wings Is a Long-Term Winner” from July 2015. Certainly the beer, wings and sports establishment is facing a host of … Read more

Retail Weakness: Blame the Election?

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Image Source: DonkeyHotey By Kris Rosemann The 2016 election cycle has been one characterized by unprecedented amounts of criticism and accusations, of both the personal and political variety, and it may be true that the perceived political environment from the view of the general public has not been in such a state of uncertainty for some time. Let’s not get into the details of who called whom what in last night’s Presidential debate, but some parents were reportedly not allowing their children to watch the debate out of fear that their values or outlook on democracy could be skewed. But could the uncertainty surrounding the election actually be enough to impact consumer activity at retail outlets and restaurants? Some are … Read more

Yum! Brands’ KFC in a Lot of Trouble

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There was a time when Yum! Brands’ (YUM) KFC dominated the US chicken market, but those days are over.  Privately-held Chik-fil-A’s roots date back to the 1960s in Atlanta, but the company has gradually become the largest (yes, the largest) quick-service chicken restaurant chain in the US, based on domestic annual sales over $5 billion (with over 1,850 locations in 41 states and Washington D.C.). Chik-fil-A’s sales levels are better than Popeyes’ (PLKI) comparatively-modest ~$200 million in revenue and Yum! Brands’ ~$3 billion in revenue at its entire US division. Very few investors know about privately-held Chik-fil-A’s continued success in the states, and the firm’s growth is not slowing. From Chik-fil-A’s adorable cow campaign, ‘Eat Mor Chikin,’ where self-interested cows … Read more