Mango Habanero-Flavored Food for Thought

Now that the NFL lockout has been lifted, I no longer fear having to find something to do on Sundays. Instead, my time is filled by meticulously ranking players for my upcoming fantasy draft. Many companies no doubt join me in welcoming back football, including Buffalo Wild Wings (Nasdaq: BWLD  ) .

Are you ready for some football?
Its Mango Habanero wings are awesome, but Buffalo Wild Wings is truly built around an extensive multimedia system, meaning the presence of professional football on Sundays and Mondays throughout the fall and winter will be a boon to visits. The resolution of the lockout came in time to prevent consumers from finding something else to do on Sundays and Mondays.

Nothing goes better with watching football than wings, and increased traffic during football season is borne out in Buffalo Wild Wings' quarterly revenues. The two quarters that contain the bulk of the football season account for nearly 52% of the company's yearly revenue. Looking at net income, the number increases to almost 54%. Let's look at this factor over the past three years:

Year

Revenue Q1 and Q4*

Net Income Q1 and Q4*

2010 51.56% 53.98%
2009 51.32% 54.85%
2008 51.72% 58.33%

Source: Company financials.
*As a percentage of total revenue/income for the year.

If not wings, then what?
While other casual-dining restaurants have a dedicated bar area with televisions showing games, none have the multimedia focus of Buffalo Wild Wings. Some, like The Cheesecake Factory, do not really attract crowds to their moderately sized bars. Others, including Brinker International's (NYSE: EAT  ) Chili's, DineEquity's (NYSE: DIN  ) Applebee's, and Red Robin Gourmet Burgers (Nasdaq: RRGB  ) , have bar areas but focus on their restaurant areas.

 In contrast, Buffalo Wild Wings focuses on an open floor plan that invites patrons to enjoy a multitude of games. While other casual-dining establishments may have a bit more food variety, as a sports fan and customer, I am more concerned with the atmosphere and having a place to hang out comfortably with friends. Buffalo Wild Wings meets this requirement.

What's a Fool to do?
Even if you don't watch football, you have to appreciate what Buffalo Wild Wings is doing to capitalize on the sport's popularity. The company is breathing a sigh of relief and marketing this fall specifically around football season. You can add Buffalo Wild Wings to your watchlist to keep an eye on the stock throughout the upcoming football season, or read this to find out if Buffalo Wild Wings is the perfect stock.

Fool contributor Robert Eberhard enjoys wings and football (Go Patriots!) but does not own shares in any security in this story. Follow him on Twitter @GuruEbby. The Motley Fool owns shares of Red Robin Gourmet Burgers. Motley Fool newsletter services have recommended buying shares of Buffalo Wild Wings. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (0) | Recommend This Article (6)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1536205, ~/Articles/ArticleHandler.aspx, 10/24/2014 6:40:39 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 9 hours ago Sponsored by:
DOW 16,677.90 216.58 1.32%
S&P 500 1,950.82 23.71 1.23%
NASD 4,452.79 69.95 1.60%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/23/2014 3:59 PM
BWLD $129.00 Down -0.44 -0.34%
Buffalo Wild Wings CAPS Rating: *****
DIN $83.30 Down -0.33 -0.39%
DineEquity CAPS Rating: **
EAT $50.01 Up +0.46 +0.93%
Brinker Internatio… CAPS Rating: **
RRGB $48.71 Down -1.88 -3.72%
Red Robin Gourmet… CAPS Rating: ***

Advertisement