Dougherty & Co Maintains a 'Buy' on Buffalo Wild Wings (BWLD); Cutting Numbers on Rising Commodity Costs
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Price: $156.95 --0%
Rating Summary:
7 Buy, 23 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
7 Buy, 23 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Dougherty & Co maintains a 'Buy' on Buffalo Wild Wings, Inc. (NASDAQ: BWLD) price target of $79.00 (from $93.00).
Analyst, Gregory J. McKinley, said, "Exceptional productivity for new and mature stores remains the highlight of the BWLD story. However, last night’s results fell short of expectations as food cost pressures caused an earnings miss and are poised to sustain in 2H to a level that reduced the company’s earnings growth outlook from 20% to 15%-20% in 2012. Heavy infrastructure investments to support growth as well as store-level spending to deliver a good customer experience weighed on margins in 2011, but earnings delivery in 1H showed some progress on controllable costs. YOY food cost headwinds are extreme, up 440 basis points YOY in Q2, and the guidance revision signifies cost controls in other areas of the P&L won’t offset chicken inflation. BWLD shares were off sharply in the aftermarket in reaction to the guidance revision."
"FY12 earnings and revenues from $3.27 per share and $1,045.4 million, respectively, to $3.20 per share and $1,051.3 million, respectively; FY13 revenues from $1,248.9 million to $1,265.9 million."
For an analyst ratings summary and ratings history on Buffalo Wild Wings, Inc. click here. For more ratings news on Buffalo Wild Wings, Inc. click here.
Shares of Buffalo Wild Wings, Inc. closed at $78.90 yesterday.
Analyst, Gregory J. McKinley, said, "Exceptional productivity for new and mature stores remains the highlight of the BWLD story. However, last night’s results fell short of expectations as food cost pressures caused an earnings miss and are poised to sustain in 2H to a level that reduced the company’s earnings growth outlook from 20% to 15%-20% in 2012. Heavy infrastructure investments to support growth as well as store-level spending to deliver a good customer experience weighed on margins in 2011, but earnings delivery in 1H showed some progress on controllable costs. YOY food cost headwinds are extreme, up 440 basis points YOY in Q2, and the guidance revision signifies cost controls in other areas of the P&L won’t offset chicken inflation. BWLD shares were off sharply in the aftermarket in reaction to the guidance revision."
"FY12 earnings and revenues from $3.27 per share and $1,045.4 million, respectively, to $3.20 per share and $1,051.3 million, respectively; FY13 revenues from $1,248.9 million to $1,265.9 million."
For an analyst ratings summary and ratings history on Buffalo Wild Wings, Inc. click here. For more ratings news on Buffalo Wild Wings, Inc. click here.
Shares of Buffalo Wild Wings, Inc. closed at $78.90 yesterday.
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