Buffalo Wild Wings Bets on Pizza - Analyst Blog

Buffalo Wild Wings Inc. BWLD is investing heavily in pizza to maintain its leading position in the U.S. restaurant industry. The Minnesota-based restaurateur opened its first PizzaRev franchise — a build-your-own pizza concept — in Hopkins.

The outlet signals the beginning of numerous PizzaRev locations to be opened in Minneapolis and St. Paul. However, the new restaurant is the first PizzaRev unit outside California.

Based in Los Angeles, PizzaRev offers a unique personal pizza crafting experience. Customers can select their sauce, cheese, meat and toppings. The pizzas, cooked in less than three minutes, help PizzaRev compete in the quick service restaurant segment. With a focus on fresh ingredients and offerings like gluten-free crust and vegan cheese, PizzaRev is continuously gaining popularity in the U.S. domestic market and is a great addition to Buffalo Wild Wings' portfolio.

Pizza is one of the most popular meals in the U.S. and most of the restaurateurs are making pizza fast and individually tailored to cater to consumers with specific preferences. The growing popularity of pizza is reflected in the fact that about 75% of Americans report having had pizza once in a two-week period in 2013, up from 66% in 2003, according to NPD Group, a market-research firm. The younger the eaters, the more likely they are to choose it, according to the company.

The popularity of pizza has reached such dizzying heights that the Mexican-food chain Chipotle Mexican Grill, Inc. CMG has also joined the bandwagon and invested in a pizza concept — Pizzeria Locale.

A leader in the sports bar and wings segment, Buffalo Wild Wings carved a niche in Wall Street with its iconic chicken wings looking to venture into alternative dining concepts. However, PizzaRev might not be the last alternative dining concept as Buffalo Wild Wings continues its run as a fan-favorite restaurant.

Buffalo Wild Wings currently sports a Zacks Rank #1 (Strong Buy). Other stocks in the same sector that can be considered include Burger King Worldwide, Inc. BKW and Jack in the Box Inc. JACK. Both the stocks have a Zacks Rank #2 (Buy).

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