Opinion on  Buffalo Wild Wings Inc. (BWLD)     Sector: Services  >  Industry: Restaurants
Bullish on BWLD ...

On May 26, 2006, I posted Buffalo Wild Wings (BWLD) on Stock Picks Bob's Advice when the stock was trading at $39.42. On June 18, 2007, BWLD had a 2:1 stock split, making my effective 'pick price' actually $19.71. BWLD closed at $27.23 on November 23, 2007, for a gain of $7.52 or 38.2% since posting.

On October 30, 2007, Buffalo Wild Wings announced 3rd quarter 2007 results . Total revenue climbed 20.5% to $82.4 million up from $68.3 million. Same store sales increased 8.3% at company owned restaurants and 5.9% at franchised restaurants. Earnings per share for the quarter came in at $.24/share, up from $.20/share the prior year.

Unfortunately, the company missed expectations on earnings which per Thomson Financial had been at $.26/share. However, revenue beat expectations of $81.4 million.

On a positive note, the Morningstar.com "5-Yr Restated" financials page appears intact. The company shows steady revenue growth, earnings growth, and relatively stable outstanding shares since 2004. (up sharply from 5 million to 16 million shares between 2002 and 2004.) Free cash flow is positive and growing and the balance sheet is solid.

BUFFALO WILD WINGS (BWLD) IS RATED A BUY

Let's take a closer look at the 'point & figure' chart on BWLD from StockCharts.com :

We can see in the above chart how the recent correction in the market has been bringing the price of BWLD down. I suspect the latest quarterly report when the company came in a couple of pennies light on estimates of earnings is making a difference in the price movement.

So how did I do with these two stocks? Really not bad. In fact, they both appreciated in price and the average of these two stocks was a gain of 24.5%.

Thanks again for visiting! If you have any comments or questions, please feel free to leave them on the blog or email me at bobsadviceforstocks@lycos.com. If you get a chance, be sure and visit my Stock Picks Podcast Website . Also check out my Covestor Page where Covestor has been analyzing my actual trading portfolio. And my SocialPicks page where all of my many picks from the first of the year have been evaluated.

Have a great week trading and stay well!

Bob