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
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
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.
