Zacks Investment Research Lowers Buffalo Wild Wings, Inc. (NASDAQ:BWLD) to Sell

Buffalo Wild Wings, Inc. (NASDAQ:BWLD) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Friday, October 27th.

According to Zacks, “Buffalo Wild Wings’ third-quarter 2017 adjusted earnings of $1.36 beat the Zacks Consensus Estimate by 74.4% and grew 5.4% year over year. Revenues increased 0.5% from the year-ago quarter but missed the consensus mark by 0.7%. The company also raised its 2017 EPS outlook. The promotion shift from half-price traditional wings to boneless BOGOs is expected to improve cost of sales going forward, though it might hamper traffic. Initiatives like menu innovation, enhancing digital capabilities, cost-saving efforts, international growth plans, along with its successful loyalty program and delivery services, bode well. However, shares of the company underperformed its industry year-to-date. Further, wage inflation, commodity cost increases, investment in initiatives along with a soft industry backdrop remain potent headwinds.”

A number of other equities analysts have also weighed in on BWLD. Stifel Nicolaus set a $115.00 price target on shares of Buffalo Wild Wings and gave the stock a “hold” rating in a report on Thursday, October 26th. Canaccord Genuity increased their price target on shares of Buffalo Wild Wings from $120.00 to $125.00 and gave the stock a “hold” rating in a report on Thursday, October 26th. BMO Capital Markets set a $120.00 target price on shares of Buffalo Wild Wings and gave the company a “hold” rating in a research note on Thursday, October 26th. Morgan Stanley raised their target price on shares of Buffalo Wild Wings from $112.00 to $124.00 and gave the company an “equal weight” rating in a research note on Thursday, October 26th. Finally, UBS AG set a $140.00 target price on shares of Buffalo Wild Wings and gave the company a “buy” rating in a research note on Thursday, October 26th. Two research analysts have rated the stock with a sell rating, eighteen have given a hold rating and seven have assigned a buy rating to the company. The company currently has a consensus rating of “Hold” and a consensus price target of $131.57.

Shares of Buffalo Wild Wings (NASDAQ:BWLD) traded down $0.70 during mid-day trading on Friday, hitting $118.85. 391,200 shares of the stock traded hands, compared to its average volume of 506,217. The stock has a market capitalization of $1,854.49, a P/E ratio of 27.61, a P/E/G ratio of 1.47 and a beta of 0.79. The company has a debt-to-equity ratio of 1.60, a quick ratio of 0.61 and a current ratio of 0.70. Buffalo Wild Wings has a 52 week low of $95.00 and a 52 week high of $175.10.

Buffalo Wild Wings (NASDAQ:BWLD) last posted its quarterly earnings results on Wednesday, October 25th. The restaurant operator reported $1.36 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.79 by $0.57. The company had revenue of $496.70 million during the quarter, compared to analyst estimates of $500.97 million. Buffalo Wild Wings had a net margin of 3.17% and a return on equity of 21.39%. The firm’s revenue for the quarter was up .5% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.23 earnings per share. equities research analysts predict that Buffalo Wild Wings will post 4.98 earnings per share for the current year.

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Several large investors have recently made changes to their positions in BWLD. Public Employees Retirement System of Ohio grew its stake in shares of Buffalo Wild Wings by 10.1% during the 2nd quarter. Public Employees Retirement System of Ohio now owns 842 shares of the restaurant operator’s stock valued at $107,000 after acquiring an additional 77 shares during the period. Macquarie Group Ltd. bought a new position in Buffalo Wild Wings in the 3rd quarter worth approximately $148,000. Riverhead Capital Management LLC boosted its stake in Buffalo Wild Wings by 95.6% in the 2nd quarter. Riverhead Capital Management LLC now owns 1,565 shares of the restaurant operator’s stock worth $198,000 after purchasing an additional 765 shares during the period. LS Investment Advisors LLC boosted its stake in Buffalo Wild Wings by 9.1% in the 2nd quarter. LS Investment Advisors LLC now owns 1,577 shares of the restaurant operator’s stock worth $200,000 after purchasing an additional 131 shares during the period. Finally, Flinton Capital Management LLC boosted its stake in Buffalo Wild Wings by 73.5% in the 2nd quarter. Flinton Capital Management LLC now owns 1,652 shares of the restaurant operator’s stock worth $209,000 after purchasing an additional 700 shares during the period. Institutional investors own 88.87% of the company’s stock.

Buffalo Wild Wings Company Profile

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.

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