Buffalo Wild Wings stock soars on report of takeover offer

Buffalo Wild Wings stock soars on report of takeover offer

Buffalo's management could view it favorably as the stock's current price presents limited scope for same-store sales growth and margin trajectory, they said in a client note.

According to a CNBC report, Roark Capital Group has made a bid offer of $150 per share to buy Buffalo Wild Wings.

Buffalo Wild Wings shares surged by as much as 28% in extended trading on Monday following a Wall Street Journal report that the company received a takeover offer. During the same quarter in the prior year, the company posted $1.23 earnings per share.

Chicken demand is "off the charts", Mizuho analyst Jeremy Scott told Investor's Business Daily last month.

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"Buffalo Wild Wings could be appealing to Roark because of the brand's dominant positioning among sports-bars, potential to improve company-owned restaurant performance with better execution, and stable base of franchise income", O'Cull wrote.

Buffalo Wild Wings posted higher-than-expected earnings for the quarter ended September 24, though same-store sales decreased 2.3 percent at company-owned restaurants and 3.2 percent at franchise locations. The company now has a consensus rating of "Hold" and an average target price of $131.57. The company had revenue of $496.70 million during the quarter, compared to analyst estimates of $500.97 million.

Barclays is reportedly working as Roark's financial adviser, while Goldman Sachs is working with Buffalo Wild Wings. The restaurant operator reported $1.36 earnings per share (EPS) for the quarter, topping the Zacks' consensus estimate of $0.79 by $0.57. Two investment analysts have rated the stock with a sell rating, eighteen have given a hold rating and seven have assigned a buy rating to the company's stock. If you are viewing this piece of content on another site, it was stolen and republished in violation of USA and worldwide copyright legislation. The original version of this piece can be read at Bank of New York Mellon Corp now owns 350,269 shares of the restaurant operator's stock valued at $44,378,000 after purchasing an additional 2,701 shares during the last quarter. Quantbot Technologies Lp now holds 3,605 shares with a value of $381,000. The company has a debt-to-equity ratio of 1.60, a current ratio of 0.70 and a quick ratio of 0.61. Finally, Teachers Advisors LLC raised its stake in Buffalo Wild Wings by 3.6% during the first quarter. Institutional investors and hedge funds own 89.14% of the company's stock. Marcato wants Buffalo Wild Wings to expand its franchising efforts, while management had resisted that notion. As of December 25, 2016, the Company's made-to-order menu items included 16 sauces and five seasonings, ranging from Sweet BBQ to Blazin.