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WildTing (71.24)

Guess what? Wing prices are high for BWLD

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July 26, 2012 – Comments (4) | RELATED TICKERS: BWLD

So BWLD takes a big dip again because wing prices are high. I guess you could say this time the higher wing prices hit the bottom line, so the analyst that I mocked from my previous post on BWLD could be categorized as correct.

 I still believe this is a very short sighted reaction. The company is "firing on all cylinders" (damn Motley Fool Podcasts), except wing prices are a bit high. Overall, it's still got room for expansion, and wait until football season when all that overpriced beer gets purchased.

4 Comments – Post Your Own

#1) On July 26, 2012 at 8:47 AM, JaysRage (93.74) wrote:

You'll be right long term on BWLD.   It's a great buy and hold stock.   It's also cyclical.    Big boom during football season and March madness, back down during the dog days of summer.   You can also make money trading BWLD along these cyclical patterns. I expect BWLD to trade another $5 lower in the next few weeks before it settles in.   Yesterday's drop was because of the poor earnings report.....there is more to go because of the cyclical down period.      

Good luck!     

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#2) On July 26, 2012 at 12:31 PM, leohaas (93.16) wrote:

I don't get why BWLD is such a success. The food is OK, and the service and atmosphere are only so-so. How many different levels of hot does one need for sauce?

But to say that the company is not doing well because of rising wing prices is to say that Kellogg's is going out of business because of high corn prices. It ignores the fact that both BWLD and Kellogg's have pricing power, and that the cost of these necessary ingredients are just a small portion of total costs.

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#3) On July 26, 2012 at 3:43 PM, JaysRage (93.74) wrote:

BWLD is a franchise sports bar restaurant, and it's a good one.   Good sports bars make money because it's a great atmosphere to see the game.   You get good food and a good veiew of the game.   BWLD consistently is able to deliver the goods.   

Think of it as the Starbucks of sports bars.   It might not be the best sports bar in town, but you know it's going to be a good one. 

By the way, their menu is actually pretty good.   I have yet to bring anyone to a BWLD that hasn't found something they like on the menu. 

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#4) On July 27, 2012 at 12:48 PM, WildTing (71.24) wrote:

I agree with @JaysRage. I actually can't stand the food at BWLD. But yet I find myself going there all the time and dumping $10-15 a sitting. That's actually what caused me to look at the stock in the first place.

 Same with SBUX. I don't drink coffee, but I'm a gold starbucks card holder. I figure if people like me who don't like a company's stuff is spending money, they've done something right. 

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