Buffalo Wild Wings (NASDAQ:BWLD)

CAPS Rating: 4 out of 5

The Company is an owner, operator and franchisor of restaurants featuring a variety of boldly-flavored, made-to-order menu items including Buffalo, chicken wings etc.


Player Avatar TMF1000 (99.71) Submitted: 9/25/2011 9:24:03 PM : Outperform Start Price: $31.59 BWLD Score: +325.44

I never added a pitch for BWLD and I wanted to:

The price today is Today the price is $59.34 and the PE ratio is 24.62 and PS ratio range was 1.58

I entered it on caps at $31.59 on 10/16/08: The PE ratio then was 25.47. At today's price of $59.34, the value is even better than in 2008. The visible long-term prospects hasn't diminished, they have grown since the company now believes they can grow to 1400 stores in the U.S and 100 in Canada. In 2008, they believed they could only grow 1,000 restaurants in the U.S. This is much better. Of course they could be wrong, but I have always thought they could grow 1500 as stated in many of my page posts on Hidden Gems, even when the company still targeted only 1,000, so I think the value is very good today.

The Company has raised their targets to 1400 restaurants in the U.S and 100 in Canada. They expect to open 50 stores in Canada in five years and 100 someday. If this is successful, it will give us some clues for growth in Europe. No one ever discusses their International prospects because they don’t discuss it. But doesn’t anyone believe it will happen someday? I do!

They continue to grow average weekly revenue which is one of the things I look at to project future store count. Company owned average revenue grew 11.5% for company owned stores. I think that is fantastic. They reported $47,970 in average weekly company sales. Applebees second quarter was $44,000 back in 2Q:2007, so BWLD has rose above their weekly sales for company owned stores and they are ahead for franchised stores too. I think this points to greater store count than many analysts expect even higher than BWLD are targeting. Again time will tell.

It is just an opinion but I think that people are underestimating the size of the demographic that likes going to BWLD.

The PE ratio is 24.62 which is in my opinion good. They have given investors a chance to buy them under $55 each of the last three quarters and I have exploited that a few times. The present price is a very good one though in my opinion. Waiting for lower prices might be a mistake for those wanting to own them. Chicken wing prices are still very low and that is always good for BWLD.

Also remember the second quarter tends to be their weakest, we are now going into the strongest part of the year for them.

Report this Post 3 Replies
Member Avatar tumblhome (82.58) Submitted: 10/3/2011 1:06:13 PM
Recs: 1

All very true. They just need customers with money so to buy their products. Stores in China should be a good bet.

Member Avatar d89 (60.03) Submitted: 2/8/2012 9:42:16 AM
Recs: 0

Hahahaha, you ARE a fool! All this fuss about a P/E ratio, a completely worthless metric for stock valuation? Oh my goodness

Member Avatar jaccuse6 (< 20) Submitted: 2/15/2012 1:40:53 AM
Recs: 1

Well done sir.

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