Buffalo Wild Wings Shares Miraculously Recover After Disastrous Q4 Report
Written by StockNews.com
Buffalo Wild Wings (Nasdaq:BWLD) shares were down more than 5% this morning after last night’s extremely weak earnings report, but things inexplicably and totally changed shortly [after] the markets opened.
BWLD plunged to three-month lows following Tuesday’s report, which included profits, revenue, and future earnings guidance all well below expectations. Normally, an earnings and forecast miss of this magnitude leads to heavy selling, which is exactly what we saw after hours, and into this morning, but a couple of minutes into today’s session, BWLD shares staged a sharp reversal. The stock not only erased its hefty losses, but pushed well into positive territory within the first thirty minutes of trading.
One can only speculate on what spurred the huge comeback, but a recent stake taken in the company by an activist hedge fund may have something to do with it. Marcato Capital Management currently holds a 5.2% stake in BWLD, and has been increasingly aggressive in its efforts to force the company back into growth mode.
Earlier this week, Marcato nominated four new board members for the company, with its managing director Mick McGuire noting “Buffalo Wild Wings’ Board appears to display an alarming lack of relevant experience in the areas of restaurant operation, foodservice and supply chain innovation, franchise system management, corporate finance and capital markets.”
Buffalo Wild Wings shares were trading at $154.65 per share on Wednesday morning, up $4.85 (+3.24%). Year-to-date, BWLD has gained 0.16%, versus a 2.35% rise in the benchmark S&P 500 index during the same period.
Buffalo Wild Wings is an owner, operator and franchisor of Buffalo Wild Wings restaurants featuring a variety of boldly-flavored, made-to-order menu items including its namesake Buffalo, New York-style chicken wings. The company was founded in 1982 and is based in Minneapolis, Minnesota.
BWLD currently has a StockNews.com POWR Rating of C (Neutral), and is ranked #27 of 54 stocks in the Restaurants category.
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