Raymond James Downgrades Buffalo Wild Wings to Market Perform

The letter comes a day after what Mick McGuire, Marcato CEO, called the company’s “lackluster analyst day presentation” and amid “observable discontent among shareholders and research analysts”.

Buffalo Wild Wing’s share price has dropped 17.6 percent in the last 52 weeks to $161.33 at Tuesday’s close, far short of the $458 Marcato said the company would be worth if it follows Marcato’s plan to shift toward a more highly franchised model.

Buffalo Wild Wings opened for trading at $162.27 and hit $166.25 on the upside on Wednesday, eventually ending the session at $166.06, with a gain of 2.93% or 4.73 points.

“The Buffalo Wild Wings Board of Directors and management team are committed to acting in the best interests of the Company and all of its shareholders”, the company said in a statement. The ratio improved, as 38 funds sold all Buffalo Wild Wings shares owned while 75 reduced positions.

Previously on Wednesday August 10 2016, Raymond James reported about Buffalo Wild Wings (NASDAQ:BWLD) kept the target price at $0.00 that suggested a downside of -1.00%. Same-store sales fell 2.1 percent at company-owned locations in the second quarter ended June 26.

Buffalo Wild Wings, Inc. The consensus target price is $158.83 with four firms rating the stock a strong buy, 10 analysts rating the company a buy, 11 analyts rating the stock a hold, two firms rating the company to underperform, and lastly zero brokeragesrating the company as sell. Buffalo Wild Wings responded last month by vowing to increase stock buybacks and accept input. Following the completion of the sale, the director now owns 3,522 shares of the company’s stock, valued at approximately $596,485.92.

Marcato says that Buffalo Wild Wings should focus on “operational excellence” within its core business.

In the letter, McGuire noted the “cessation of emerging brands’ growth plans”, saying that the company should focus exclusively on its core business. Earnings per diluted share were $1.27, compared to $1.12 a share a year ago. The Company operates Buffalo Wild Wings and Emerging brands (PizzaRev and Rusty Taco) restaurants as well as selling Buffalo Wild Wings and Rusty Taco restaurant franchises. On Jul 27, 2016, Barclays said it Maintains its rating on Buffalo Wild Wings. “If we find a concept that has the potential to become a success story, we know how to build restaurants”.

“Members of our board and management team, as well as our outside advisors, have met with and spoken to Marcato numerous times since learning of its investment”, the company said in a statement.

We’ve reached out to Buffalo Wild Wings for more information. “This opportunity will be squandered if our concerns highlighted here are not addressed with urgency”.