| Stock (Symbol) | Stock Price | |
Buffalo Wild Wings (BWLD) |
$85 |
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| Data is as of | Expected to Report | Sector |
September 13, 2012 |
Oct 15 |
Retail & Travel |
| Sharek’s Take | ||
 Buffalo Wild Wings is at $84 — 26 times earnings — and I don’t see the stock going any higher by the end of the year. BWLD has been lowering quarterly estimates for three quarters and now profits are scheduled to rise only 16% this year.
Same store sales were up a solid 5% last quarter — so this is still a good stock — but wing prices rose 89% and that cut into profits. This is still a great long-term hold, but the stock won’t go anywhere in the short-term. |
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| One-Year Chart | ||
 You can really see this stock dropped after reporting in July. Recently its risen even though it shouldn’t have. Profit growth was only 5% last quarter? Ugh. I can’t see this stock hitting resistance of $90. |
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| Earnings Table | ||
 Even though profits rose only 5% last quarter, sales jumped 29%. This food-cost issue is a short-term thing. BWLD is still worth 25 times earnings.
BWLD missed estimates by 6 cents last quarter. This stock doesn’t have momentum anymore. Annual Profit Estimates fell this quarter. Quarterly estimates have fallen for three straight quarters now. Growth still looks good, but not great. |
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| Fair Value | ||
 BWLD is sitting around its Fair Value with no catalysts to push the stock higher. |
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| Ten-Year Chart | ||
 As you can see in the ten-year chart, this stock is a great one to buy-and-hold. I’d purchase more shares if we got a dip to $70 again. Last year was great because food costs were low, now we have tough comparisons. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
14 of 16 |
Buffalo Wild Wings’ stock isn’t going anywhere. Estimates are eroding and the stock’s trading as though that weren’t true. If you’re a trader, sell your shares. If you’re an investor, sit and wait for 2013.
BWLD is ranked 14th in the 16 stock Growth Portfolio Power Rankings. I would buy this stock for the Aggressive Growth Portfolio if the stock got down to 20 times earnings, which is $64 right now. |
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Aggressive Growth Portfolio
N/A |
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