| Stock (Symbol) | Stock Price | |
Buffalo Wild Wings (BWLD) |
$143 |
|
| Data is as of | Expected to Report | Sector |
November 4, 2013 |
Feb 10 – Feb 17 |
Retail & Travel |
| Sharek’s Take | ||
 Buffalo Wild Wings kicked it up a notch last quarter with 67% profit growth. Shares spiked up on the news but the P/E of 31 is high by historic standards. BWLD is having a banner year in profitability this year because wing prices were high last year. Wing prices last quarter were $1.71/lb, 13% lower than last year. As a long-term investor in this stock, I have to say I feel momentum investors have piled into the shares, and will bail out when earnings growth normalizes. That said, BWLD will probably keep going higher in the near term as everything flowing smooth. |
||
| One-Year Chart | ||
 During the last four quarters, BWLD’s P/E has gone from 21 to 26, 29 and 31. The shares have doubled during the last year. The stock can handle this as long as profit growth stays strong. IF BWLD beats the street again this quarter, profit growth could hit 35%. |
||
| Earnings Table | ||
 Sales jumped 28% for the second consecutive quarter. Profits shot higher by 67%. Sames store sales rose between 4-5%.
BWLD whipped earnings estimates by ten cents. It beat by 10 cents 2QtrsAgo too. Quarterly growth should be solid for the next year. |
||
| Fair Value | ||
 Here’s what I don’t like: The P/E is high by historical standards. This stock usually has a P/E in the low 20s. Now the P/E is 38 times this year’s earnings, 31 times next year’s. Last quarter the P/E was 29. The quarter before that: 26. During the 1st qtr this year the P/E was only 21. |
||
| Ten-Year Chart | ||
 This has been a great stock since it came public. I’ve followed BWLD since before the IPO, kept a copy of the original prospectus. This spike we see is not healthy. I envision a correction sometime, or a basing period. |
||
| Power Ranking | Bottom Line | |
Growth Portfolio
15 of 24 |
Buffalo Wild Wings kicked the momentum up a notch last quarter, and the stock is riding high. I’m holding my shares, but feel this stock is overvalued right now. BWLD is ranked 15th in the 24stock Growth Portfolio Power Rankings. Thistock isn’t in the Aggressive Growth Portfolio. |
|
Aggressive Growth Portfolio
N/A |
||
