Head to Head Survey: Buffalo Wild Wings (BWLD) and Chanticleer (BURG)

Buffalo Wild Wings (NASDAQ: BWLD) and Chanticleer (NASDAQ:BURG) are both retail/wholesale companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.

Profitability

This table compares Buffalo Wild Wings and Chanticleer’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Buffalo Wild Wings 3.17% 21.39% 7.44%
Chanticleer -15.66% -48.28% -19.80%

Valuation and Earnings

This table compares Buffalo Wild Wings and Chanticleer’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Buffalo Wild Wings $1.99 billion 1.22 $94.74 million $3.84 40.64
Chanticleer $41.70 million 0.18 -$9.07 million ($2.58) -0.97

Buffalo Wild Wings has higher revenue and earnings than Chanticleer. Chanticleer is trading at a lower price-to-earnings ratio than Buffalo Wild Wings, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Buffalo Wild Wings has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500. Comparatively, Chanticleer has a beta of 1.63, meaning that its stock price is 63% more volatile than the S&P 500.

Institutional & Insider Ownership

92.5% of Buffalo Wild Wings shares are held by institutional investors. Comparatively, 2.3% of Chanticleer shares are held by institutional investors. 1.2% of Buffalo Wild Wings shares are held by insiders. Comparatively, 2.5% of Chanticleer shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and price targets for Buffalo Wild Wings and Chanticleer, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Buffalo Wild Wings 1 22 3 0 2.08
Chanticleer 0 0 0 0 N/A

Buffalo Wild Wings currently has a consensus target price of $144.50, suggesting a potential downside of 7.40%. Given Buffalo Wild Wings’ higher possible upside, equities analysts plainly believe Buffalo Wild Wings is more favorable than Chanticleer.

Summary

Buffalo Wild Wings beats Chanticleer on 10 of the 12 factors compared between the two stocks.

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. 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.

Chanticleer Company Profile

Chanticleer Holdings, Inc. is engaged in the business of owning, operating and franchising fast casual dining concepts domestically and internationally. The Company’s brands include Hooters, American Burger Company (ABC), BGR: the Burger Joint (BGR), BT’s Burger Joint (BT), Little Big Burger (LBB) and Just Fresh. Hooters restaurants are casual beach-themed establishments featuring music, sports on large flat screens, and a menu that includes seafood, burgers, salads and Hooters original chicken wings. ABC is a fast casual dining chain located in North Carolina, South Carolina and New York. BGR consists of approximately 10 Company-owned locations in the United States and over 13 franchisee-operated locations in the United States and the Middle East. LBB consists of approximately eight locations in Oregon. Just Fresh consists of approximately seven Company owned locations in Charlotte, North Carolina.

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