5 Key Things This B-Dubs Analyst Is Watching

In a report published Friday, Wunderlich analysts maintained a Buy rating on Buffalo Wild Wings BWLD, with a price target of $208, saying that the new LTO and Express Lunch could boost same-store sales and improve food costs. B-dubs launched its new LTO, featuring several new Pork options, and new Express Lunch (EXL) program. The initiative aims at offering options that are "more craveable," a wider range of price points and a more prompt service. "We believe the company's new LTO is also positioned to take advantage of lower pork commodity prices, including its new pork Ribs, sandwiches and appetizers, and in a wider variety of attractively priced choices," the analysts said. The new LTO features six new items priced from $4.49 to $11.99. The new Express Lunch menu is "more consumer-friendly in entrée choices (over 2x selections), price points ($5.99- $9.49), and customization," the analysts highlighted. The revenue, sys-SSS and EPS estimates for 1Q15 are at $454.3mm (Street $453.1mm), 8.2 percent (Street 8.6 percent) and $1.66 (Street $1.63), respectively. Restaurant margin is expected to decline to 19.3 percent in 1Q, from 21.5 percent last year, on account of higher wing prices. "Given that Jumbo-cut wing prices have not fallen materially since the peak demand of Super Bowl, or following the recent NCAA March Madness tournament, Street EPS estimates for 2Q15 have drifted lower in recent weeks," the report added.