Restaurant Sector Rallies on Buffalo Wild Wings' Takeover Bid
Nov 14 2017 by Johnny Bowman
The proposal was made on October 13 at a 48 percent premium to Buffalo Wild Wings's share price at the time, the person said. The company's distance from 52-week high price is -17.08% and the current price is 52.84% away from 52-week low price. The brokerage now has a hold rating on the restaurant operator's stock. (NASDAQ:BWLD) shares are seeing unusual volume mid-trading session today. 391,200 shares of the company traded hands, compared to its average volume of 506,217.
Analysts at Wedbush, which boosted their price target to $130 from $115, said the offer is realistic and that Buffalo's management could view it favorably with the stock's current price representing limited visibility into same-store sales growth and margin trajectory.
Roark Capital declined to comment, while Buffalo Wild Wings was not immediately available for comment.
But a Buffalo Wild Wings acquisition would just be the latest deal in what's been an incredibly busy year for restaurant mergers. Buffalo Wild Wings has a 52 week low of $95.00 and a 52 week high of $175.10. The restaurant operator reported $1.36 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.79 by $0.57.
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We don't doubt that Buffalo Wild Wings would be a willing seller. The company had revenue of $496.70 million during the quarter, compared to analyst estimates of $500.97 million. During the same period in the previous year, the business posted $1.23 earnings per share. equities analysts predict that Buffalo Wild Wings will post 4.98 earnings per share for the current year.
The Gross Margin Score is calculated by looking at the Gross Margin and the overall stability of the company over the course of 8 years. Zacks Investment Research cut Buffalo Wild Wings from a "hold" rating to a "sell" rating in a research note on Friday, October 27th.
WARNING: This piece was originally reported by Week Herald and is owned by of Week Herald. If you are reading this news story on another domain, it was illegally copied and republished in violation of US & global trademark and copyright law. The firm made a play for fellow chicken chain Popeyes, but lost out to Restaurant Brands International (QSR - Free Report), which ended up buying the company for roughly $1.8 billion in February. The Value Composite Two of Buffalo Wild Wings, Inc. OppenheimerFunds Inc. now owns 3,595 shares of the restaurant operator's stock valued at $549,000 after buying an additional 1,082 shares in the last quarter. Its stake stood at $4,437,000 a decrease of $967,000 as of quarter end. Wellington Management Group LLP grew its holdings in Buffalo Wild Wings by 29.7% during the 1st quarter. Finally, UBS AG set a $140.00 price target on Buffalo Wild Wings and gave the company a "buy" rating in a research note on Wednesday, October 11th. Institutional investors and hedge funds own 89.14% of the company's stock. Marcato owns about a 6% stake in Buffalo Wild Wings. As of December 25, 2016, the Company's made-to-order menu items included 16 sauces and five seasonings, ranging from Sweet BBQ to Blazin.