Buffalo Wild Wings, Inc. (NASDAQ: BWLD)
Buffalo Wild Wings, Inc. (BWLD), a restaurant franchise company yesterday fell over 4% on news of at least 10 people falling ill of a gastrointestinal issues after eating at Buffalo Wild Wings. The department of health received the illness reports, that came from 10 diners in Overland Park, Kansas. Early speculation is that it could be norovirus which is highly contagious and causes gastrointestinal issues that can lead to diarrhea, nausea and vomiting. Lab results confirming the cause of the illness should be available in a few days.
Buffalo Wild Wings, Inc. Spokesman’s Comments
“Although there is no conclusive link to our restaurant being the source of the illness, we voluntarily took these actions out of an abundance of caution,” a spokesman for the company said in a statement to CNBC. “The restaurant re-opened Sunday following consultation with the health department.” CNBC
BWLD Technical Analysis
BWLD opened yesterday at $149.93, down from the prior day’s close of $150.00. BWLD closed at $143.64 down over 4%. BWLD reached lows of $138.33 in trading yesterday only $0.02 short of its 52 week low price of $138.31. Taking a look at the daily chart we can see that BWLD has been on an overall decline dating back to September 23rd when it traded at $205.83. BWLD has a low float of 18.83 million shares and traded over 5.5 times the normal daily trading volume on Wednesday. For trading purposes, I would be looking to take a short position in early morning trading on Thursday giving myself a $0.25 stop loss for the position.
Company Profile
Buffalo Wild Wings, Inc., incorporated on December 19, 1995, is an owner, operator and franchisor of restaurants featuring a variety of menu items, including its Buffalo, New York-style chicken wings. The Company’s restaurants include a multi-media system, a bar and an open layout. The open layout of its restaurants offers dining and bar areas that provide seating choices for sports fans and families. 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. Its restaurants offer 20 to 30 domestic and imported beers on tap, including craft brews, and a selection of bottled beers, wines and liquor. As of December 28, 2014, the Company owned and operated 491 company-owned restaurants, including 487 Buffalo Wild Wings and four Emerging brands (PizzaRev and Rusty Taco) restaurants in the United States and Canada. It also franchised an additional 591 restaurants, including 584 Buffalo Wild Wings restaurants and seven Rusty Taco restaurants. Its company-owned Buffalo Wild Wings restaurants range in size from 3,900 to 9,800 square feet, with a typical size of approximately 6,300 square feet for restaurants. The Buffalo Wild Wings restaurants feature a variety of menu items, including its Buffalo, New York-style chicken wings spun in one of its signature sauces from sweet to screamin’ hot, which include Sweet BBQ, Teriyaki, Mild, Parmesan Garlic, Medium, Honey BBQ, Spicy Garlic, Jammin’ Jalapeno, Asian Zing, Caribbean Jerk, Thai Curry, Hot BBQ, Hot, Mango Habanero, Wild and Blazin’, or signature seasonings, which include Buffalo, Desert Heat, Chipotle BBQ, Lemon Pepper and Salt & Vinegar. Its chicken wings can be ordered by the portion, ranging from snack-sized to large, with even larger orders available for parties. In addition to traditional and boneless chicken wings, its menu features a variety of food items, including Sharables, Wild Flatbreads, specialty hamburgers and sandwiches, wraps, Buffalito soft tacos and salads. It also provides a 12 and under menu for kids. The Company’s restaurants are sports grill and bars that provide an atmosphere where friends gather for camaraderie and to celebrate competition. Its restaurants also features dining and bar areas, and many of the restaurants have patio seating. It has approximately 60 high-definition flat-screen monitors and approximately two to four projection screens throughout the restaurant. These televisions, combined with its sound system, Buzztime Trivia and assorted video games, provide a source of entertainment for its guests. Reuters
