Buffalo Wild Wings Takes a Dive: Is the Stock a Buy?http://www.fool.com/investing/general/2013/04/30/buffalo-wild-wings-takes-a-dive-is-the-stock-a-buy.aspx Steve Symington
April 30, 2013
Though shares of Buffalo Wild Wings (NASDAQ: BWLD) rose more than 4% in Monday's after-hours trading following a strong quarterly report from the company, the stock fell into a tailspin Tuesday morning after a pair of analyst downgrades stemmed investors' excitement.
Sure enough, while Deutsche Bank raised its price target on the firm to $105 from $95 per share, the market drove shares of B-Wild down more than 4% after analysts at both Sterne Agee and KeyBanc downgraded the stock to "neutral" from "buy."
So what's an investor to do?
Meanwhile, same-store sales increased 1.4% at Buffalo Wild Wings' company-owned restaurants and 2.2% at franchised locations. While that still fell short of fast-casual competitor Panera Bread (NASDAQ: PNRA), which posted company-owned same-store sales growth of 3.3%, CEO Sally Smith reminded investors that her company still outpaced the negative same-store sales trend prominent in the casual-dining category as a whole. What's more, remember that in February, B-Wild management had said same-store sales for the first six weeks of Q1 were down 2.8%, so ending Q1 in positive territory reflected a huge improvement for the chain.
Even even better, while first-quarter wing costs remained frustratingly high, management also stated that it's finally seeing some moderation in prices, as the company expects to pay an average of $1.75 per pound in April and May. For those of you keeping track, that's nearly 17% lower on a sequential basis, and nearly 8% less than their cost around th