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Stock (Symbol) Stock Price

Buffalo Wild Wings (BWLD)

$86

Data is as of Expected to Report Sector

May 2, 2012

July 23

Retail & Travel

Sharek’s Take
David SharekBuffalo Wild Wings (BWLD) got a nice pop earlier in the year after a surprising beat. Now things have simmered down, and BWLD stock should too. Profit growth was 21% last quarter, down from 33% two quarters ago. Same store sales rose 7% last quarter, which is very good but less than the 9% two quarters ago. 10% growth is what I feel is special for a restaurant.
 
I think this stock is fairly valued here. I’m taking my Fair Value P/E down from 30 to 25. BWLD currently has a P/E of 26, so the stock is where it should be.
One-Year Chart
The one-year chart shows the stock jumped after reporting two quarters ago. Back then I thought BWLD would go to $100, but now I feel the stock will base here.
 
Estimates show profit growth of 15% and 5% coming the next two quarters. Assuming BWLD beats, 20% to 25% growth could be coming. The P/E is 26, which is fair.
Earnings Table
 Sales jumped 37% last quarter That’s the fifth straight quarter of accelerating sales growth. Profits rose 21%.
 
BWLD beat the street by 4 cents last quarter. That’s a good beat, but not great.
 
Annual Profit Estimates for 2012 and 2013 barely budged. This stock doesn’t have the momentum it did last quarter.
 
Quarterly estimates are fair. 18% growth is expected the next four quarters (on average).
Fair Value
BWLD was worth 30 times earnings last quarter, now its worth 25 times. This stock has minimal upside.
Ten-Year Chart
Buffalo WIld Wings is a great stock to buy-and-hold. The stock compounds at 20-25% a year. Right now BWLD is a little extended. I see a basing period ahead.
Power Ranking Bottom Line
Growth Portfolio

12 of 18

Buffalo Wild Wings’ momentum has slowed. The stock is selling where it should be. There’s not too much upside here.
 
BWLD is ranked 12th in the 18 stock Growth Portfolio Power Rankings. Its got to come down for me to accept it into the Aggressive Growth Portfolio.
Aggressive Growth Portfolio

N/A

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