Buffalo Wild Wings Grows in Canada - Analyst Blog

Buffalo Wild Wings Inc (BWLD), the casual dining chain recently announced that through its subsidiary BWLD Canada LP, it is planning to expand for the first time outside United States in Canada. As per its expansion plan, the company will open more than 50 company-owned and franchised restaurants in the next 5 years.

Buffalo Wild Wings’ first location is Southern Ontario, where it will open two restaurants by spring 2011, one in Oshawa and the other in Mississauga. The company reveals that it is planning to open 30 additional restaurants in Ontario. However, Buffalo Wild Wings is still looking for suitable locations. The other locations, which the company is seeing are B.C., Alberta, Manitoba and Saskatchewan and in the east it is looking at Quebec and the Maritimes.

In the last 12 years, Minneapolis-based Buffalo Wild Wings has grown from 35 restaurants to 680 in the United States. The company believes that the Canadian market also provides similar growth opportunities and Buffalo Wild Wings has chosen Canada as its first international location as Canadians are equally fond of fast foods such as chicken wings for which the company is particularly renowned.

This expansion will help create more than 3500 jobs in Canada, with each restaurant hiring between 50 to 75 employees.

Since Buffalo Wild Wings has limited presence in the international markets, the company’s recent expansion plans in Canada will provide it with ample opportunities to enhance its reach.

The Zacks #1 Rank for the stock is currently being retained, which translates into a short-term Strong Buy recommendation. Boasting a successful track record, a viable business strategy and a debt-free balance sheet, Buffalo Wild Wings offers investors one of the strongest growth stories in this space.

The company’s primary competitor is BJ’s Restaurants Inc. (BJRI), which plans to open 10 restaurants in fiscal 2010.

Founded in 1982, Buffalo Wild Wings (popularly known as BW-3) operates and franchises a chain of 680 casual dining restaurants in 43 states that serve chicken wings, hamburgers, sandwiches, appetizers, salads and other items.