Citigroup Sees Improved Outlook At Buffalo Wild Wings

In a report published Monday, Citigroup analyst Gregory Badishkanian commented on Buffalo Wild Wings' BWLD fourth-quarter results and why he is more bullish on the company.

Badishkanian noted that the company posted "mixed" fourth-quarter results as earnings per share missed while same-store sales slightly beat.

"Encouragingly, same-store sales has accelerated in 1Q-to-date, with same-store sales for the first five weeks of 1Q up +11.9 percent at company-owned restaurants and up 11.1 percent at franchised locations," Badishkanian wrote.

Badishkanian also noted that the first five weeks benefited from an incremental college football game and an incremental UFC fight, although management didn't quantity a specific uplift from these events.

Looking forward, the company said that it continues to expect 18 percent earnings per share growth, implying an earnings per share of $5.84 versus estimates of $5.97.

The analyst noted that the company will complete the rollout of tabletop tablets and is testing menu ordering from tablets in the first half of 2015. As such, Badishkanian explained that the forward-looking guidance and trends justified an increase in 2015 earnings per share estimates to $6.00 from a previous $5.90.

2016 earnings per share estimates was also increased to $7.20 from a $7.05 while a 2017 earnings per share estimate of $8.50 was introduced.

Shares remain Neutral rating with a price target raised to $206 from a previous $197.