ikkyu2 (99.51)

Go B-Dubs!

February 08, 2012 – Comments (1) | RELATED TICKERS: BWLD

BWLD reported a killer quarter and the stock soared, up 18% on the news.

The story here is not fads, or increasing wing prices.  It's not even all about margins, although management is executing on margins very well.

The story is organic growth.  BWLD opened 60 new locations this year.  I still wish they had one in my area, although I'm hoping that by the time the licenseholder gets around to opening one, I'll have $100K kicking around to invest in it as a silent partner.  

The reason I am so bullish on this story is that I have spent many a happy hour drinking beer, eating fries and wings, and watching sports in bars.  That market used to be locally-owned and fragmented, just like the taqueria niche; and many places you went there really was no good place to go do that.  BWLD has it down to a science; they're expanding nationally with good success; they didn't sell their soul (or indeed anything) to bondholders to do it; and a lot of places now have a BWLD where you go to drink beer, eat fries and wings, and watch sports.

Chipotle pretty well recognized this opportunity in the taqueria/burrito-ria slot.  BWLD is going to nail down the sports bar business.  They have room, room, plenty of room to grow organically and they understand that they are not retailing chicken wings, they are retailing a lifestyle experience that nearly every American man and woman wants to participate in.  I am so bullish on this that I can almost taste it.

If it's not obvious, I'm long BWLD and intend to remain so for a long time - hoping to catch my first spiffy-pop in it sometime soon!  (Mad props to TMFSpiffyPop!)