| Stock (Symbol) | Stock Price | |
Buffalo Wild Wings (BWLD) |
$92 |
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| Data is as of | Expected to Report | Sector |
May 5, 2013 |
July 22 |
Retail & Travel |
| Sharek’s Take | ||
 Last year Buffalo Wild Wings was hampered by high wing prices. Now wing prices have dropped dramatically, and profit growth should be strong the next four quarters. As of March 8 wing prices fell from $2.12 to $1.59 — down 25% — in 6 weeks (source: American Restaurant Association). Now that the future looks bright, the stock is already high. BWLD has gone from $73 to $92 (+26%) so far in 2013. The P/E of 26 slightly over my Fair Value of 25 times earnings. Still, momentum is up and the stock can still drive higher as strong profit growth will likely grab headlines. |
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| One-Year Chart | ||
 Last quarter BWLD had a P/E of 21. Now after the strong move higher the P/E of 26 is higher than the company’s Est. Long Term Growth Rate of 19%. Notice Estimates (bottom right) for the next two quarters show profit growth could hit 50% two quarters from now. That could push the P/E to 30. |
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| Earnings Table | ||
 Sales increased 21% last quarter but profit growth fell 11%. BWLD is increasing labor costs due to its new Guest Experience model. Same store sales rose 4%.BWLD missed by 12 cents but investors focused on the future, which now looks great. Annual Profit Estimates finally increased. Management said it expectes 25% EPS growth this year. I like that quarterly estimates increaed. Profit growth is expected to average a sizzling 34% the next four quarters. |
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| Fair Value | ||
 Although momentum is strong and BWLD should keep going higher, over the long-run this stock is worth 25 times earnings. It’s fairly valued. |
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| Ten-Year Chart | ||
 Buffalo Wild Wings is a great stock to buy-and-hold. The catch is to buy the stock when its on a dip. Now the stock is around all-time highs and seems to be a little over its trendline. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
11 of 17 |
The trend is your friend and BWLD’s trend is up. So this stock is timely and a good one to own in the short term. In the long-run, this stock is fairly valued right now. Long-term investors should wait for a better entry point. BWLD is ranked 11th in the 17 stock Growth Portfolio Power Rankings. The stock doesn’t have enough upside for the Aggressive Growth Portfolio. |
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Aggressive Growth Portfolio
N/A |
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