I can't bear all of that bull
My esteemed rival is worried about how Motley Fool Hidden Gems recommendation Buffalo Wild Wings (NASDAQ:BWLD), or BW3 henceforth, might handle itself through crises such as the bird-flu scare. He then fails to mention that this scare has been a net positive. It brought down chicken prices, giving BW3 a margins boost at the expense of chicken farms like Pilgrim's Pride (NYSE:PPC), Tyson Foods (NYSE:TSN), and Sanderson Farms (NASDAQ:SAFM) without having to work for it. I'd contend that BW3 management still doesn't know what hard times look like, at least as a publicly traded company.

On valuation, it's hard to complain about annual returns of about 23% on your investment, but on the flip side of that, I'm sure I mentioned how overvalued the stock is, even after that 15% one-day drop. In Ryan's estimation, the price-to-earnings-to-growth ratio of 0.72 seems like a good deal, but he's effectively counting the first year of growth twice, since the P/E figure of 16 is the expected forward number. P/E today stands at just more than 26, creating a PEG ratio of more than 1.0. Some would call that fairly valued, but not with substandard net margins and ROA.

Ryan notes that management is growing the firm from cash on hand, and he thinks it's a good thing. Financial prudence is good all right, but not when taken to the extreme of timidity. If BW3 management really believed in its market opportunities, it would take out a loan or two and get those stores on the map a bit faster. I'm positive that we're heading for a significant drop in consumer spending, and BW3 would be wise to strike while the iron is hot. Move too slowly, and you'll leave a lot of money on the table.

I think that between a crowded market that may collapse in the near future, and the availability of more appetizing alternatives like Red Robin (NASDAQ:RRGB) or Applebee's (NASDAQ:APPB) -- depending on which way you swing -- there's no reason to buy BW3 today. Check back again after the housing bubble pops, though, if the Buffalo is still standing then.

Think you're done with the Duel? You're not! Go back and read the other three arguments, and then vote for a winner .

Sanderson Farms is a former Stock Advisor recommendation.

Fool contributor Anders Bylund holds no position in any of the companies discussed here, and he's been known to hang out in a buffalo stance. You can check out Anders' holdings if you like. Foolish disclosure is tangy and sweet, all at once.