Buffalo Wild Wings (BWLD)
By
Michael Cintolo, Vice President of Investments and Editor of
Cabot Market Letter and
Cabot Top Ten Report From Cabot Wealth Advisory, 2/4/10.
Sign up for free Cabot Wealth Advisory e-newsletter Today I'll highlight a stock I've been keen on for a while, yet the stock (and its group) just never got going last year. But now, it looks like the tide may be turning.
I'm talking about restaurant stocks, but specifically, "new idea" restaurant stocks that aren't already so big that they're destined to grow a measly 5% a year. One of my favorite ideas in the group,
Buffalo Wild Wings' (BWLD), has tons of expansion potential in the years ahead, which, combined with growth at restaurants already open, should drive earnings sharply higher.
Buffalo Wild Wings' (BWLD) is aiming to be a national sports bar of sorts, a novel idea. The firm makes a lot of its money on alcohol, thanks to its fun, cozy atmosphere, yummy wings (including a dozen different sauces) and crew that is told not to force customers out the door. The firm currently has 652 stores in 42 states, but management believes 1,000 stores in the U.S. is easily achievable, followed by expansion overseas. Revenue growth is running in the 25%-plus range, with earnings a little faster.
The stock has been building a base since the middle of last year but perked up in 2010 despite the soggy market. Also, the company reports earnings on February 11. Assuming the stock get through the earnings reports unscathed, my thought is that it has strong upside in the months ahead as money flows into the fastest-growing companies in this group.
Editor's Note: From the market's bottom in March 2003 to the low in March 2009, the S&P 500 lost 18% in total and the Nasdaq lost 3.5%. Cabot Market Letter, however, left them in the dust: Advancing a total of 94% during the past six years (nearly 12% per year). Cabot Market Letter has called every bull market since 1970. In fact, Timer Digest recently named Cabot Market Letter one of the Top Ten Timers for the last one, three, five and 10 years! Don't miss what our indicators have to say next!
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Buffalo Wild Wings (BWLD)
5500 Wayzata Boulevard, Suite 1600
Minneapolis, Minnesota 55416
952-593-9943
http://www.buffalowildwings.com
Details: Index Membership: S&P 600 SmallCap, S&P 1500 Super Comp
Sector: Services
Industry: Restaurants
Full Time Employees: 1,200
Michael Cintolo
Vice President of Investments and Editor of Cabot Market Letter and Cabot Top Ten Report
A growth stock and market timing expert, Michael Cintolo is editor of Cabot Market Letter and Cabot Top Ten Report. Since joining Cabot in 1999, Mike has uncovered exceptional growth stocks and helped to create new tools and rules for buying and selling stocks. Perhaps most notable was his development of the proprietary trend-following market timing system, Cabot Tides that has helped Cabot place among the top handful of market-timing newsletters numerous times.