Dougherty & Co Downgrades Buffalo Wild Wings, Inc. (BWLD) to Neutral; Becoming More Cautious on Shares

Dougherty & Co downgraded Buffalo Wild Wings, Inc. (NASDAQ: BWLD) from Buy to Neutral, price target from $70 to $63.

Dougherty analyst says, "We have modeled for September quarter revenue and earnings of $187.6 million and $0.53 per share, respectively, versus the Street consensus of $190.3 million and $0.59 per share, respectively. Our September quarter estimate reflects a 24.0% YOY increase in revenues fueled by a 4% increase in comparable store sales at company-owned locations and a 90 basis point increase in restaurant margin to 19.0%."

"Conclusion - Exceptional productivity for new and mature stores has been the highlight of the BWLD story of late. Amidst strong infrastructure investments to support growth (1H G&A expenses increased 40.4% YOY), more challenging sales comparisons after the December quarter, and the exhaustion of commodity costs as an earnings driver in 2012 (we estimate chicken wing cost declines drove the vast majority of YOY per share earnings growth in the year ended June, 2011), we are becoming more cautious on BWLD shares."

For more ratings news on Buffalo Wild Wings, Inc. click here and for the rating history of Buffalo Wild Wings, Inc. click here.

Shares of Buffalo Wild Wings, Inc. closed at $59.68 yesterday.

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