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Rise and Fire!

Stock (Symbol) Stock Price

Buffalo Wild Wings (BWLD)

$85

Data is as of Expected to Report Sector

February 15, 2012

Apr 26

Retail & Travel

Sharek’s Take
David SharekHigher food costs were supposed to put a chill on Buffalo Wild Wings this year. But last quarter the company shocked the world when it came in with sales above estimates and beat profit views. News of the beatdown sent shares of BWLD (now known as Buck Wild) soaring.
 
That was the good news. The bad news is estimates didn’t rise much afterwards. In fact estimates declined in two of the next three quarters. Still, momentum is so strong that this $85 stock could go to $100.
One-Year Chart
OK, here the Estimates for the next two quarters show 16% and 10% growth ahead. But same store sales are solid so far this quarter and Buck Wild could deliver another beatdown.
 
From a historical perspective, this stock has earned a 35 P/E in the past. That could happen again with this momentum.
Earnings Table 
The BIG news is last quarter same store sales rose 9% at company owned stores and 6% at franchises. Sales jumped 34%. That’s the fourth straight quarter of faster sales growth. Profits rose 33%. 
 
BWLD beat by 6 cents. Revenue was expected to be $210 million and the company counted up $220 million.
 
Annual Profit Estimates didn’t rise as much as I hoped.
That’s a head scratcher.
 
Quarterly estimates show 16% growth coming next quarter, but sales are expected to climb 37%. I think this stock will beat the street again.
Fair Value
Last quarter I took BWLD’s P/E down from 25 to 20 — now I push it to 30. If the stock stays en fuego we could see 35.
Ten-Year Chart
Wow, ok, this stock is extended. BWLD was on a long trendline leading back to its IPO. That’s been broken. Still, the stock’s not that expensive at 26 times earnings. BWLD could keep this gain, but the base is a long way down.
Power Ranking Bottom Line
Growth Portfolio

10 of 19

Buffalo Wild Wings is powering higher on the back of solid sales figures. This stock is timely right now and makes a jump in the Power Rankings.BWLD is ranked 10th in the 19 stock Growth Portfolio Power Rankings. I’ll consider it for the Aggressive Growth Portfolio.
Aggressive Growth Portfolio

N/A

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