| Stock (Symbol) | Stock Price | |
Buffalo Wild Wings (BWLD) |
$106 |
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| Data is as of | Expected to Report | Sector |
September 10, 2013 |
Oct 21 – Oct 28 |
Retail & Travel |
| Sharek’s Take | ||
 Buffalo Wild Wings has a lot of good things going for it. Profits are soaring because of lower wing prices, sales and same store sales are doing well, and the stock’s up around 40% year-to-date. All is good. Except now BWLD is selling for 29 times earnings, which is high. So I feel the good news is baked into — or rather fried into — the stock price. Short-term investors can feel free to sell half their position. Long-term investors can continue to sit tight. |
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| One-Year Chart | ||
 During the last three quarters, BWLD’s P/E has gone from 21 to 26 and now 29. The stock’s gone from undervalued to fairly valued and now overvalued. Profit growth looks to be around 40-50% in the near term due to easy comparisons from a year-ago. |
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| Earnings Table | ||
 Sales surged 28% quarter as same store sales increased 4%. Profits jumped 42%.
BWLD beat the street by ten cents, but that didn’t really matter much. Company had been missing, and quarterly estimates didn’t increase so maybe that was an anomaly. Quarterly growth is expected to be around 40% in two of the next four quarters. I would have liked to see these increase though. |
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| Fair Value | ||
 I’ve covered BWLD since before its IPO. I’ve owned it since 2006. This stock usually sells for 25 times earnings. On the high-end the P/E sometimes gets to 35. I feel next year — when all this easy money from low wing prices is past us — BWLD will go back to selling for 25 times earnings. |
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| Ten-Year Chart | ||
 This has been such a good stock during the last decade. I consider BWLD to be a 20% to 25% grower. It’s a good stock to pick up on dips, and this isn’t a dip. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
18 of 25 |
Buffalo Wild Wings is timely and has momentum. The company has a lot going for it, but that’s already fried in to the share price. Short term investors can continue to ride the momentum and try to sell high. Long-term investors should hold, or sell half if you want to take profits. BWLD is ranked 18th in the 25 stock Growth Portfolio Power Rankings. The stock isn’t in the Aggressive Growth Portfolio. |
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Aggressive Growth Portfolio
N/A |
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