Buffalo Wild Wings (BWLD) Maintains An Outperform Rating
February 12, 2010 6:13 PM
Oppenheimer (NYSE: OPY) has maintained an Outperform rating for Buffalo Wild Wings (NASDAQ: BWLD).
The company saw its same-store sales come down from an initial high level at the start of the fourth-quarter, which resulted in lower-than-expected margins and EPS for the fourth-quarter.
However, the outlook for 2010 is still solid. The company expects revenue growth to be in the mid teens, and EPS growth to be at 20%.
Oppenheimer has lowered the EPS estimate for 2010 from $2.15 to $2.06, which is based on a 3% increase in company owned same-store sales.
According to Oppenheimer, the company should benefit from less adverse year-over-year comparisons for wing prices, and same-store sales as 2010 progresses. Oppenheimer expects the closure nine underperforming stores to have a positive impact on margins.
